May, 2010

Managing your finances can be tricky, especially so for larger expenses such as mortgages and insurance. Rather than just accepting the first quote or price that is offered to you on these things, why not shop around, do some research and ensure you get the best deal? Doing this is likely to save you a great deal in the long run, whilst also helping homeowners to avoid debt problems.

Mortgages

Buying a house is probably the most expensive and important purchase you may ever make, so it is imperative that you try to get the very best deal on your mortgage. There are so many different deals available that you might want to use a price comparison site to work out which one is best for you and can save you the most money. However, remember to read the small print for any catches before you agree to anything.

A final point on mortgages is that if you can afford to overpay on monthly payments, even just a small amount, you will be able to clear your debt much more quickly whilst saving a lot more cash.

Insurance

Here's how to save money on different types of insurance:

• Car Insurance ‚Äö√Ñ√¨ You don't necessarily have to go for the big name companies for your car insurance; there are many cheaper alternatives to be found by shopping online and comparing prices
• Travel insurance ‚Äö√Ñ√¨ Holidaymakers who go for travel insurance are often unaware that by automatically renewing their travel insurance when it runs out, they could actually be losing money. If you have no holiday planned and the option to renew presents itself, say no and save money.

The key to saving money can often be making changes to your lifestyle. The little things all add up, making you considerable savings in the long run. The following are a few beneficial ways you can cut down on unnecessary spending (more in pt. 3):

1. Cut down on smoking and drinking – These habits are not only unhealthy, they're also expensive. Save money by cutting down on your drinking and quitting smoking – you'll be surprised at how much money you could save.
2. Change your travel habits – If you live close enough to your workplace, try walking or cycling there instead of getting the bus or taking the car. If you need to travel by train or bus, get off a stop early and walk to save a little extra cash.
3. Quit the gym – Unless you go to the gym regularly, paying expensive membership fees can be a real waste of money. There are lots of ways to exercise without spending any money, such as walking, running or cycling.
4. Take up cooking – Relying on ready meals or eating out all the time can be costly, so try to make more of an effort to prepare your meals yourself. Fresh ingredients are cheaper and you can use them for more than one meal.
5. Stop competing with friends and family – Trying to keep up with other people in terms of expensive cars, homes and possessions is how many people end up with debt problems, so concentrate on yourself and be realistic with your finances instead.

You may not realise it, but there are hundreds of ways to save money on everyday items. Cutting back on spending and putting some money aside is important even if we are edging out of the economic recession, especially for those with debt management problems or something to save up for in the future.

Here are a few top tips for saving money on shopping (see pt.2 for more):

1. Go to the market – Products at local markets are generally cheaper as the stallholders don't have as many overheads as supermarkets. Also, you get the satisfaction of knowing you've supported local producers.
2. Buy own-brand products – If you do shop for food at the supermarket, consider going for own-brand ‘value' options. These are often vastly cheaper than big-brand labels.
3. Make a shopping list – This can help you work out what you actually need so you aren't tempted to waste money on unnecessary two-for-one deals at the supermarket.
4. Forget about designer labels – Unless you can afford them, designer label clothes and accessories are an unnecessary luxury, the price of which can't be justified by a famous name on the label.
5. Wait for the sales – Sensible, resourceful shoppers are the ones who look out for discounts and sales, making big savings on most of the things they buy.
6. Compare prices – Do some research using price comparison sites before you buy, so you can always be sure you're getting the best deal.