If you're determined to make a change to your finances and end the year better off than you started it, try these 10 easy ways to make yourself richer in 2011.
It’s the time of year where many of us decide to make a change, and with VAT up to 20%, record high petrol prices and more cold weather on the way, looking at your finances is a good idea. Here are ways to beat the price hikes and make yourself better off in 2011.
1. Make your debts cheaper
Whether you’re paying interest on a credit card, loan or mortgage the cost of your borrowing could be seriously impacting on your spending power.
Cutting the amount of interest you pay is one of the easiest ways to make yourself richer this year. After all, the less interest you pay the more money you’ll have spare to clear your debts faster, or spend as you please.
If you’re paying interest on credit cards you should read our Action Plan: How to clear your credit cards to find out how to switch to a better deal – you may be able to slash your interest costs to zero!
If your overdraft is costing you money then try our Action Plan: How to pay off your overdraft to discover how to cut your interest costs dramatically.
Reducing the interest you pay on your mortgage is an easy way to free up extra money, if you go about it in the right way. Read our Action Plan: How to pay off your mortgage early to find out what you need to do.
With the Bank of England base rate still at a record low of 0.5% there are still some great mortgage products available for those who meet the lending requirements. However, there is talk that interest rates will start rising in the next few months. If you couldn’t cope with a sudden rise in mortgage repayments read our guide Should I fix my mortgage to see if you might be better off tying into a deal sooner rather than later.
If you have multiple debts then you should read our Action Plan: How to clear your debts to find out how to get a better deal on everything you owe.
2. Make your savings work harder
With interest rates at an all time low it's more important than ever to make sure your savings are working hard throughout 2011 so you earn as much interest as you can.
Checking that your savings wouldn’t be better used to clear expensive debt is the first thing you should do. Read our article: Should I use my savings to pay off my debts? to find out whether this is the best way for you to make your money work harder.
If saving is the way forward you need to make sure you keep tabs on the interest you’re earning.
Many savings accounts offer introductory bonus rates to attract your savings only to drop after 6 or 12 months. Check exactly what your savings are earning right now and switch if there are any better accounts on the market – providing you wouldn’t be penalised for leaving.
Using your ISA allowance is another must as it enables you to earn interest on your savings tax free. Read this guide to find out more about ISAs and follow our Action Plan: How to grow your savings to find out how to pick the right account no matter how much or how little you have to save.
3. Spend less on essentials
Why spend more than you need to on household bills? If you haven’t checked that you’re getting the best deal on everything from energy to broadband you could be missing out. Switching suppliers is an easy way to cut the cost of essentials and free up cash.
Take a look at our Action Plan: How to cut your utility bills to find out how to pay less for water, gas and electricity and read this article to find out how much you could save by insulating your home, and this article for top energy saving gadgets worth paying for.
Cutting the amount you pay for your landline, broadband and mobile phone is also relatively easy once you know how.
Read our guide How to switch broadband without the headache for top tips on cutting the cost of getting online, this article to discover how to slash the cost of your landline and try our Action Plan: How to find a cheap mobile phone deal to find out how to cut the cost of staying in touch.
4. Cut the cost of groceries
There is a good chance that a large amount of your leftover cash is spent in the supermarket – so even cutting your food bill by £10 a week could make you over £500 richer in 2011.
Try our Action Plan: How to spend less on food to find out which little changes will make a big difference to the amount you spend on food.
Shopping online is an easy way to keep track of your spending and gives you the chance to shop around for a better deal – by using mysupermarket.co.uk for instance.
If you’re not quite so keen to swap your shopping trolley for a mouse then try our guide How To Save On Your Supermarket Shop for more ways to cut the price of groceries.
5. Shop around for everything
With VAT at 20% the cost of everything from CDs to shoes, will be higher in 2011 than it was during 2010.
As a result shopping around to make sure you get the best price is more important than ever before and could mean that you can make your money go further.
Making the most of sales, discounts and vouchers and getting cashback where you can is an easy way to cut costs.
Shopping around is easiest online but even if you are in the shops then you can still check you are getting a good price, read our article on How to compare prices on the high street to find out how.
6. Pay less tax
Paying tax is something that we all begrudgingly accept; however why should you pay more tax than you are obliged to in 2011?
Thousands of people in Briton are in the wrong council tax band and as a result are paying more to the taxman each month than they need to.
Check out our Action Plan: How to pay less council tax to make sure you’re not paying too much.
7. Cut the cost of insurance
When it comes to insurance, loyalty is seldom rewarded and the best savings are reserved for those who shop around and don’t simply renew their policies every year.
If you’ve renewed any insurance product with the same provider for more than one or two years, there is a good chance you could save money by looking elsewhere.
Check out our Action Plans dedicated to cutting the cost of insurance so you don’t pay any more than you need to and read this article to find out which types of insurance you’re wasting money on.
8. Claim what you’re entitled too
The British benefits system is complicated and as a result thousands of people are not getting the benefits that they are entitled to.
This guide gives you a quick breakdown of the main benefits offered by the government and our Action Plan How to find out your benefit entitlement shows you how to claim.
The Direct.gov website also has lots of information on the various government benefits and details on how you can claim if you’re eligible.
9. Get a pay rise
If you work hard then there is no harm in asking for a pay rise if you feel you’ve earned it. However, your chance of success will be greatly increased if you do your homework first so you’re able to put forward a convincing case.
Read our Action Plan: I want to get a pay rise for a step by step guide on making it happen.
10. Make the most of your spare time
If you’re willing to put the hours in there are endless opportunities to make a little extra cash in your spare time.
Take a look at our Action Plan: I want to earn extra money for a whole host of ideas that will help you to boost your bank balance with minimum effort.
