Tips on reducing monthly expenditure in the home and how to save money on utility bills
If it feels as though the money in your purse doesn’t go as far as it used to, that’s because it most likely doesn’t. While the overall outlook for the UK economy is bright, inflation has (on average) been outstripping wage increases for several years. As a result, the typical household simply doesn’t have as much money for life’s luxuries.
Most families have already made sacrifices to accommodate these changes. Gone are the daily cappuccinos from your local coffee shop, the weekly takeaways and restaurant dinner – but what else can be done to reduce your monthly expenses and bring your household budget under control?
Cutting down on life’s little luxuries isn’t the only way of reducing your monthly expenditure. Saving money on necessities such as utilities can make a real difference too. Here is a list of five items on your monthly expenditures list which could be reduced to save you previous money to use on treating your family.
1. Energy
This is an area where you can make considerable savings just by being a little bit more resourceful and shopping around. It is fair to say that most of us complain about the price of our energy bills but very few of us ever bother to do anything about it. The important thing to remember is that there is no universally cheap tariff; it all comes down to your region and usage levels.
This is why you should use a comparison tool that helps you see which tariffs are the cheapest, on average, for your reading. Online tools offer an easy way to do this by simply asking you to enter your postcode and returning a list of results that outline the average costs for each tariff based on an average energy consumption level. This is known as a Tariff Comparison Rates and will usually be printed on your bill so that you can check how your actual costs compare.
You can use a Tariff Comparison Rates (TCR) tool online to get an idea of where you stand now and to compare different tariffs from a specific provider.
2. Mortgage
If you’re lucky enough to own your own home and pay a mortgage then chances are that this is the largest bill you face every month, but how do you know if you are paying more than necessary? If you are paying your lender’s full standard variable rate (SVR) you are probably paying hundreds of pounds a year more than you need to – you can find out more about SVR and what it is here.
There are hundreds of deals available and by taking the time to discover the best option available you could save a small fortune.
3. Home insurance
Whether you’re a homeowner or a tenant in a rented property then you still need to protect yourself with a home insurance policy. This is because the content and assets held within your home are likely to be very high – especially if you’ve got a family’s worth of personal possessions held there!
Make sure you select the best policy for your situation, ensuring it is for a value that covers the full contents of your home. Most mortgages require applicants to obtain building’s insurance which means that it is the landlord’s responsibility and not the tenant’s in rented properties. This policy protects individuals from physical damage sustained to their home. Contents insurance – which all adults are advised to get – covers damage, theft or loss of personal items and furnishings found within the home.
You may find you can get some of these policies included on other financial products (such as bank accounts which you pay a set monthly fee for) or receive a discount if obtaining them through an existing insurer which you use for other services – such as your car insurance.
4. Council Tax
Though council tax bills are based on property values, they can be reduced. This is dependent on the circumstances of the person who is responsible for paying and can offer a small discount to help manage costs.
If you are a single mum, live alone, are on benefits or are in full time education then you may be entitled to a reduction or partial refund on money you’ve already paid. Most councils also allow you to now split your Council Tax payments over 12 months instead of 10 so that it is easier for you to manage your monthly outgoings.
You can find out more about Council Tax Reduction (which replaced Council Tax Benefit on 01 April 2013) which is available to residents of England, Wales and Scotland at the UK Government website.
5. Water
Another common cost for family households is water. While some supplies are charged at a flat rate regardless of how much water you use, others will vary the cost depending on your efficiency.
Installing a water metre can help you to keep track of your usage and cut down on unnecessary expenditure. Introducing water-saving measures in the home can also help and involves simple things like fitting eco-friendly showers, turning taps off when brushing your teeth and adjusting the cycle on your washing machine to use as little water as possible.
By being frugal you could save an average of £52 per year according to research. That’s £52 a year that could allow you to enjoy the odd early-morning cappuccino from your favourite café again!