Expert comment: How to cut costs and save amidst an uncertain future
Latest reports from the Office for National Statistics (ONS) reveal a 119% rise in potential redundancies compared to this time last year.
The new data demonstrates the importance of saving, when possible, to ensure you are prepared for a sudden change in circumstances.
Financial experts at money.co.uk/savings-accounts have revealed their top tips for cutting back costs and saving money to safeguard your financial future:
- Drop big brands in favour of supermarket own items
- Review your subscription services
- Make the most of promotions and discounts
- Cash in on credit card freebies
- Switch to a SIM only contract
- Move debts to interest free or lower interest credit cards
Lucinda O’Brien, expert at money.co.uk savings accounts, said: ”There are so many factors that impact our financial futures, especially during the cost of living crisis, so it is important to put yourself in the best position possible to deal with a sudden change of circumstances.
“While not everyone has the opportunity to put money away for a rainy day, cutting down the costs of everyday life can help to free up cash. A quick and easy way to save money is to drop brands in favour of supermarket own items.
“This will reduce the cost of your weekly shop and lower your food bill in the long-term. In many instances, own brand versions are rated just as highly (or even higher) than premium brands so you won’t be sacrificing quality.
“Cancelling subscriptions could be another way to cut costs. Review your bank statements to check there’s not the odd few pounds leaving your account for subscriptions you don’t use, or maybe consider using just one subscription package per month, for example, finish the series you’re watching on Netflix before starting something new on Disney +.
“Another way to cut down on spending is promotional codes. If there is something you need to buy, it’s always worth searching the internet to find discount codes to get some extra money off. New accounts are normally credited with 10% off for sign-up so double check before making that purchase.
“As well as promo codes, make sure you’re squeezing every possible freebie from your credit card provider, or other services you have. For example many card providers give you free subscriptions as a sign up bonus, as well as discount and cashback.
“For example, the American Express Platinum Cashback card entitles the owner to a strong cashback offering of 5% on purchases in the first three months and up to 1% after that.
“Reviewing your phone contact can be another good way to cut down costs. If possible, switching to a SIM only contract will be significantly cheaper and can offer much larger usage allowances than tariff bundles.
“Moving debts to an interest free or lower interest credit card will also aid your long-term financial security. Switch to a credit card that charges a lower rate of interest, or even no interest, for a set time so that you save money. Because more of your repayments will go towards paying off your debt rather than interest, you’ll also clear your debt faster.”
For more information and guidance, visit: at money.co.uk/savings-accounts
