How to save money on utility bills

More money saving tips from Loan Pig

Energy bills are big news yet again. In July it was reported that people who have smart meters installed might only save an average of £11 annually on their energy bills, much less than originally hoped. Then in August British Gas announced it is to increase its gas and electricity prices for its 3.5 million customers: the second increase this year. It blames the increase on an increase in wholesale energy prices, so other energy suppliers may well follow suit.

Meanwhile it was also announced earlier in the year that the average water and sewerage bill in England and Wales is set to rise by £9 to £405 a year.

So it seems that all our essential utilities – gas, electricity and water – continue to get more and more expensive. We canâ€t do without them but fortunately there are some ways in which we can keep costs down. Try the following money saving tips to see a difference in your bills and have more change in your pocket:

1. Switch energy supplier

Changing energy supplier is easy and can knock hundreds of pounds off your bills. According to Ofgem, the average household could save around £300 per year by switching gas and electricity supplier. You can switch supplier whether you own or rent your home, as long as you pay your own gas and/or electricity bills.

Switching supplier is easy and should only take 17 days. All you need to do is look at a price comparison website – Ofgem provide a list here. You will need to have a recent energy bill or information from your current supplier so that you have information about your current energy plan, including how much you use and the name of your tariff.

All you then need to do is to choose the new supplier you want to change to and they will then arrange the switch and will ask you to provide meter readings. Your old supplier will send you a final bill and you should then be able to start saving money with your new supplier.

2.Consider having a water meter installed

At the moment, domestic water customers can’t choose their supplier. So there is no water equivalent of switching supplier like we have just looked at for gas or electricity. However, one thing you can do is to consider getting a water meter installed. This means that you will be charged for the amount you actually use, rather than charged a fixed annual amount.

A water meter could save you between £50-£100 per year, but is more cost-effective for homes with either an individual, a couple or a small family. General guidance from the water regulator Ofwat is that a water meter could be more effective if there are more bedrooms than people in your household.

To find out whether it is worth you getting a water meter, try this calculator from CCW (Consumer Council for Water).

If you do get a water meter installed but find you are not saving money then you are entitled to switch back to fixed charging for up to 12 months after the water meter is installed.

3.Pay by direct debit

For all utility bills it is usually better to pay by direct debit. Some companies offer discounts if you are paying by direct debit, enabling you to make extra savings. Paying by direct debit also enables you to spread payments evenly throughout the year so that you donâ€t face hefty bills during the winter, when there’s also Christmas to think about. It also means that you donâ€t need to worry about missing payments as they are all made automatically for you.

4.Use less

For all utilities, the less you use the lower your bills will be. There are a number of ways in which you can cut back without affecting your day to day life too drastically:

• Before turning the heating on or up just think whether you really need to: sometimes and extra layer of clothing or bedding is all you need to keep warm for less.
• When the heating is on, turn down your thermostat slightly: even a 1°C reduction could cut 10% off your heating bill!
• During the winter, keep your heating turned on constantly on a low heat setting : this is more economical than switching it off and on, as it then has to heat up the whole home from scratch.
• Get into the habit of always turning off lights when you leave a room.
• Use energy saving light bulbs as they last up to 10 times longer than ordinary bulbs and don’t cost very much more.
• When boiling the kettle don’t use more water than you need.
• When using the oven you don’t usually need to preheat it – in fact you can lose a lot of energy by opening a preheated oven to put food in.
• Also when using the oven, maximise the use of it. Try and cook several meals at the same time: extra food can be frozen for later.
• Showers tend to use less water and energy than baths, though this may not be the case for a power shower. If the pressure is at its highest it can use just as much water as a bath, so turn the pressure down to save energy.
• Fill up your washing machine, tumble dryer and dishwasher – one full load uses less energy than two half loads.
• When using the washing machine wash your clothes at a low temperature – 30-40 °C. This saves money, as 90% of a washing machine’s energy expenditure is spent on heating the water.
• Try to hang laundry to dry rather than tumble drying it,  but if you do use a dryer then take your clothes out before they’re completely dry. This saves energy and also makes clothes much easier to iron.
• Keep your fridge and freezer full as this will save energy. If there is empty space in your fridge or freezer it means that every time you open the door, cold air escapes easily meaning that the appliance then has to cool things down again. If you do not have enough food to fill them, jugs, bowls or plastic bags of water will work equally well.

5. Make your home more eco-friendly

It is also worth looking at more far-reaching ways of saving money on your utility bills. Planning some bigger energy conservation measures for your home could potentially save you around £250 per year.

Some of the measures that you might want to consider are a new boiler, cavity wall insulation, loft insulation, or solar panels. Check out the Energy Saving Trust website for further information and ideas.

Some of the above measures also have energy-saving grants available to help with the cost of home improvements. You can find details of grants on theGov UK website.

We hope that these money saving tips are useful and help you to cut down your utility bills in time for winter. Remember to check back here soon for more financial help and advice from Loan Pig.

SOURCES

https://moneyaware.co.uk/2015/04/101-ways-to-save-money/

https://www.moneyadviceservice.org.uk/en/articles/save-money-on-your-gas-and-bills

https://www.bbc.co.uk/news/business-44903471

https://www.bbc.co.uk/news/business-45111743

https://www.moneysavingexpert.com/news/energy/2018/02/water-bill-rise—see-how-yours-will-change

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source https://www.loanpig.co.uk/how-to-save-money-on-utility-bills/

Five Common Money Mistakes

Sort out your finances with online loans from Loan Pig

It is a sad fact of life that some people are good with money and others just aren’t. We’ve all got that one friend who always seems to be able to buy what they need and yet also has savings and, as far as we can tell, no debt. Whereas we always struggle to make it through to the end of the month and never seem to have any spare cash for anything.

So what is the secret?

Well, for starters there are five very common mistakes that most people make regarding money. If you can put those five things right then you will be well on the way to sorting out your finances and getting things moving in a positive direction. So let’s take a look at these five mistakes and start putting things right:

1. Not having a budget
   

Most of us have no real idea where our money goes: in fact it’s often all committed even before we get it. The only way to turn this situation round is to make a budget. It will take time and effort but will be worth it. 

First of all you need to make a list of every item of expenditure that you have each month. Include all your bills (mortgage or rent, Council Tax, energy, water, phone/TV/broadband etc) then any loan or credit card payments, transport, food – everything. 

Then make a list of all the income – money – that you have coming in every month. Include salary/wages, any benefits, and any other money from anywhere else.

What you then need to do is ensure that there is enough money on the income list to cover everything on the expenditure list. Ideally more, because that then means you can save money (see point 4 below). 

If there is not enough income to cover your expenditure then you have a problem because you are going to get more and more into debt each month. It is tempting to be ostrich-like about this: bury your head in the sand and pretend it doesn’t exist, but the sooner you face it the sooner you will start getting out of trouble. 

2. Living beyond your means
   

Continuing on the budget theme, it is not enough just to make a budget on paper, but you need to test it out in reality. You need to begin recording how much you are actually spending day by day. If the numbers are not adding up then you need either to reduce your expenditure or increase your income – preferably both – to get out of the state you are in. 

There is further advice on how to do this in our article The 50/20/30 Rule The Less Painful Way To Stick To A Sensible Budget. But the main battle you need to win is in your head. To get your finances completely under control you need to be determined to make the changes – some perhaps significant ones – that will get you back on the right track again.

3. Increasing debts
   

Let’s be clear. If you have any kind of debt then it is really important to keep up with your repayments. If you miss payments, or are late making payments, then this can result in you getting a poor credit record which will make lots of financial options more difficult for you in future. Paying off debts must be your number one priority.

Also be aware that if you are only paying off the minimum payment each month on credit cards and some types of loan, then all you are likely to be doing is paying off the interest that you are being charged. You are not actually reducing your overall debt at all. 

So if at the same time you are also still using credit cards, you are sliding further into debt. Be particularly careful about using credit cards the same way you use debit cards: credit cards are not real money, they are just more debt.

If you are in the situation where you have lots of different credit card debts, it may be better to take out a short term loan to consolidate these into one manageable monthly payment. You will be able to keep track of what you are doing and can make extra payments into the loan whenever you are able to do so, to reduce the overall debt.

4. Not saving
   

Recent research by The Skipton Building Society indicated that at least a quarter of people in the UK have no savings. Savings provide you with a financial safety net in case of any kind of emergency – as well as enabling you to spend money on something special should the need arise. 

It is a good idea to build up a bit of savings – aim for one month’s salary – as an emergency fund, then leave that money untouched while you focus on paying off your debts. Once your debts become more manageable then start the savings process again.

Saving can be hard, so one way of looking at it can be to set up a separate savings account and pay a bit of money into it each month, treating the payment exactly the same as any other bill. Try and have a savings account that is not too easy to take money out of: yes you want to be able to access it in case of emergency but not treat it just as an extension of your main bank account.

It is also never too early to start saving for retirement. If your company has a pension scheme it is usually worth joining this as your employer will then make pension contributions over and above those you make yourself. Try to get into the habit of saving for the future now, and you will not regret it when the time comes for your retirement.

5. Not watching your money
   

There’s a lot of truth in the old saying look after the pennies and the pounds will take care of themselves. To really get on top of your finances you need to watch it constantly. If you are spending money on anything out of the ordinary, check whether you really need it and whether you can actually afford it. If you are not sure then wait a couple of days before making a final decision.

Also make sure you don’t waste money. Always look around for a bargain or the best deal – whether for something you are buying or for a supplier such as your energy provider. Always be on the lookout to save money. 

Check your bank statement regularly to make sure there are no errors and keep your eyes open for better deals on bank accounts. There are often incentives for switching accounts and you may be able to switch to an account with better benefits or less charges.

The overall message is to make managing your finances an integral part of your day to day life. Be aware of how things are and nip any problems in the bud before they have a chance to grow out of proportion.

We hope that by being aware of these mistakes you will be able to avoid them from now on and start getting on top of your finances once and for all. Check back here soon for more help and advice and money saving ideas from Loan Pig.

SOURCES

https://www.thebalance.com/biggest-money-mistakes-2385535

https://www.independent.co.uk/news/uk/home-news/british-adults-savings-none-quarter-debt-cost-living-emergencies-survey-results-a8265111.html

https://www.thebalance.com/how-to-fix-money-mistakes-in-your-twenties-2385529

https://www.mymoneycoach.ca/blog/8-common-mistakes-that-can-keep-you-broke.html

 

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source https://www.loanpig.co.uk/five-common-money-mistakes/

Top 10 ways to save money on holiday

Money saving ideas for your late summer holiday

Although we are nearing the end of the school holidays, that does not mean that holiday season is over. You may be  planning to grab a quick last-minute break with the family before the children go back to school, or be able to take a holiday during term time when it is cheaper.

Either way, you want to enjoy every minute! But whilst you definitely don’t want to be counting the pennies when you are on holiday, you don’t want to find yourself up to your eyes in debt when you get back.

According to the travel association ABTA, holiday spending starts adding up even before our journey begins. UK holidaymakers travelling abroad are likely to spend over £500 on holiday products and services before they arrive at their destination. This includes travel to and from the airport, new clothes, duty free goods, cameras and other electrical goods, magazines and books, suntan lotions and other toiletries and sunglasses and other accessories.

So, are there ways that you can reduce holiday spending but still having a brilliant time? Try the following tips and you’ll be heading in the right direction!

Cut back on spending before you go

The above figure of £500 from ABTA is frightening! Whilst it’s great to have lots of new stuff to take on holiday, if you’re on a tight budget it’s better to cut back on this and save the money until you get there. You probably already have lots of summer clothes that you’ve hardly worn, so why not just get one or two new essentials and make do with what you already have? Similarly with toiletries: you don’t need to buy new bottles of everything, just take what you have. You can always buy things at your destination if you do find yourself running out of anything – and will then have some interesting and different things to bring back with you that will be ongoing reminders of your happy holiday.

Manage your holiday money

For most tourist destinations it is better value to change currency in the UK before you go. But do check with your destination there are some countries that have restricted currencies, which means that selling, buying or sending money is controlled. Other countries may trade in more than one currency so you need to find out which is the best one to use. So make the effort to look into this before you go, and also decide on the best combination of credit cards and cash that you are going to use. Credit cards are helpful in that you can defer payment for the goods so can spread the cost of your holiday. They also offer protection on some purchases. But you do need to be careful not to let the spending mount up and get out of control.

Get the best phone deal

It is definitely worth looking into your phone costs before you go on holiday. Make sure you know what rates you will be charged for calls, texts and data when you are abroad. Ask your phone provider if they offer travel bundles that can help to keep costs down, and also get the most up to date advice on which settings to enable and disable so that you do not run up any unexpected charges. Remember that many resorts offer WiFi which is likely to be cheaper than your phone network, though do check this with the resort when you get there.

Leave your home in good hands

Instead of locking up your home while you are away and taking pets to kennels, get someone to come and stay in your home. You may have family or friends who would love a holiday in your part of the country, and would be happy to feed pets and water plants in return. You can then go away happy that your home is in good hands and that you won’t have to pay any money in the process.

Get to the airport for less

Some of the above amount quoted by ABTA is for transport to and from the airport. Whichever way you do things this can be expensive. Whilst it can seem a good idea to drive yourself there, airport parking is usually expensive. It can also be quite stressful getting from the car park to the terminal with all your luggage. A slightly cheaper option would be a taxi or chauffeur service; this will still cost you money but at least drops you at the terminal itself. Also look into public transport if this is manageable with your luggage. But by far the best option is to find a good friend who can give you a lift – though to be fair you then need to offer to do the same for them!

Travel light

If you take as little as possible with you on holiday this not only makes your journey much easier but can also save you money. Most of us overpack and this can lead to us having to pay extra money to the airline for excess baggage – especially on the way home if we have done a bit of shopping on holiday. There is only so much luggage that we need: most of us probably bring back about half our holiday clothes unworn. So be economical about how much you pack and it will save you time, hassle and money.

Lounge around the airport

A surprising way to save money is to book an airport lounge in advance. Prices start at around £30-40 per person and you can usually check into the lounge at least 3 hours in advance of your flight. Facilities typically include food and drink (terms vary), wifi, and sometimes showers or even a spa. Check out the variety available at websites such as Travel Supermarket. As well as having somewhere nice to sit and relax, a lunge can save you money not only on food and drink, but also from all the impulse purchases you might end up buying if you are bored and wandering around airport shops or duty free.

Enjoy your hotel food

You can save a lot of money on food whilst on holiday if you make the most of your hotel food package. If you are on either a bed and breakfast or half board basis, fill up on the food that is there so that you do not have to spend a lot of money on food away from the hotel. If you do eat out, you will usually find that lunchtime is cheaper, and there are often set menus available. So if you are at a bed and breakfast you may then want to have the latest lunch deal you can find and that will probably also see you through the evening. If you are on an all-inclusive rate then it is even easier to budget because everything is paid for upfront, apart from tips.

Go with the locals

If you are eating or drinking outside the hotel it pays to find where the locals go. Many of us can be unadventurous on holiday and just stick to the popular tourist areas. But often if you are just prepared to walk away from the tourist areas and try the smaller cafes, restaurants and bars favoured by the locals you will find a better quality food, a more authentic atmosphere and considerably lower prices.

Barter for your goods

Depending where you go on holiday, it can be well worth haggling for the goods that you want. In some countries this is the expected way of doing things anyway, but it is always worth a try wherever you are. Most shops in tourist destinations are competing fiercely against each other, and most would rather gain a sale for a little below the asking price rather than lose it to the competition. So it’s worth a try, there’s nothing to lose. Just smile and be polite, and if your offer is refused then you can always just walk away: sometimes this causes the retailer to change their mind anyway. Haggling does not come easily to many of us, but the more you try, the more comfortable you feel – and you are hopefully creating a win-win situation for both you and the retailer.

 

We hope that these tips enable you to make the most of your holiday and come back with change to spare. Check back here soon for more money saving ideas from Loan Pig.

 

SOURCES

https://abta.com/about-us/press/abta-reveals-brits-spend-as-much-before-they-travel-as-they-do-abroad

https://www.telegraph.co.uk/travel/advice/how-to-save-money-on-summer-holiday/

https://www.travelsupermarket.com/en-gb/extras/airport-lounges/

https://travelmoney.moneysavingexpert.com/

https://www.independent.co.uk/money/spend-save/holiday-phone-bills-eu-roaming-charge-data-texts-calls-a7752676.html

 

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source https://www.loanpig.co.uk/top-10-ways-to-save-money-on-holiday/