Money Saving Tips Review
Here is a review of our current financial situation brought to you by our money saving tips expert. Technically we are told by the government that we are in a recession when we have two quarters of negative growth in our economy. Mervyn King the Governor of the Bank of England in 2008 stated that we were in a recession. The government since then has talk about us being in a double dip recession. My personal view is that we are bouncing up and down along the bottom.
All the experts are now giving us their opinions; some say it will be a short recession; whilst others declare a deep and long recession. I remember all the experts giving us their predictions for when the property bubble would burst and none of them really had a clue or even got it right. So I am taking no chances on all the new experts who will be rushing forward to give us their expert opinion
The last real recession was back in 1992 some sixteen years ago; although we did have another recession in 2000 which nobody really noticed. It was never on this magnitude with governments having to bail-out the RBS (Royal Bank of Scotland) and the Lloyds Banking Group Banking in order to put confidence back into the markets. Who would have thought that well established investment banks that were founded during the Great Depression of 1929 and ordinary banks would have gone bust and other banks would have ended up being rescued by their respective governments. Governments around the world stepped into help their banks. Many governments have invested hundreds of billions of pounds into their own banking systems.
12 Money Saving Tips
Here are 12 money saving tips to help you survive this recession as it stumbles on and on.
- BUDGETING –– The best money saving tips on offer recommends that you sit down and write out all of your monthly costs and evaluate them. Get rid of anything that you are paying for that is a waste of money or is no longer needed. Check all your direct debits and standing orders on your bank account. You would be surprised how many people are paying money out each month on direct debits and standing orders that they should have cancelled a long time ago.
- SAVINGS – Don’t invest your hard earned savings in foreign banks just because they have fantastic interest rates. Find out what their deposit protection is for non-residence first. For example the Channel Islands of Jersey and Guernsey do not offer any deposit protection. You are covered by the Financial Services Compensation Scheme (FSCS) in any UK bank up to £50,000 per customer per bank. Should you have more than £50,000 it is a good idea to spread your money around the UK banks. Be careful not to open two accounts in the same bank or two banks that are part of the same group as you may not be covered.
- INSURANCE PROTECTION – – During these times of economic uncertainty you have a greater need for unemployment, sickness and accident insurance protection more than at any other time. Most of us have mortgages, loans, credit cards, utility bills and everyday expenses that would need to be paid if we were to lose our jobs through a redundancy, become ill or suffer an injury and be unable to work for a while.
- HOME INSURANCE – With household budgets already stretched you should seriously think about getting new home insurance quotes as you may have been with your current provider for many years. Many Insurance companies will just keep increasing home insurance premiums every year for customers who stay with them. It’s possible that you could be paying more than you need to. It would be prudent if you looked around for some new content insurance quotes and buildings insurance quotes. This money saving tips will save you hundreds of pounds a year on any building insurance quotes or content insurance quotes if you look around for a new policy.
- GOVERNMENT BENEFITS– Money saving tips asks are you claiming all your entitlements? Like Working Tax, Child Tax credits, Child Benefits, Children’s Tax Credits, etc. Every penny counts when times are tight
- REPLACING YOUR CAR– If you don’t buy a new car this year or next year you will save money on the monthly repayments that you would have paid for a new car All cars lose 45% to 55% of their value within three years of ownership. So by keeping your old car you will reduce the amount of money you would lose in depreciation against the amount you would lose on a brand new car. Why not consider a car share to save on costs and there are a number of websites offering to put you in touch with other car drivers in your area. Money saving tips that save you money!
- DROWNING IN DEBT– If you are currently struggling with debts then facing up to your problems is certainly one of the first steps. Your next step is to speak to a Debt Management organisation that is charity run like Consumer Credit Counseling Services or the National Debtline or you can always contact Citizens advice.
- SWITCH UTILITY SUPPLIERS– It is important that you do a Gas and Electricity comparison on one of the comparison websites. Then when you know who has the cheapest Gas and Electricity supply for you then search for a cash back website where most cashback sites will give you up to £75 for signing up through their website for your dual utility package. You should also check your Car Insurance, Buildings and Contents Insurance in the same way as your gas and electricity. More money saving tips that will save you money.
- BORROWING – Under no circumstances should you take out any further loans or credit cards to help pay your monthly mortgage, loan or credit card payments. The latest statistics suggest that a million people are using their credit cards to help supplement their monthly mortgage and living expenses. The cost of borrowing for loans and credit cards is expensive and it will only make your situation worse. If you should decide to arrange a loan and credit card consolidation within a secured homeowner loan, you will be securing an unsecured debt on your home.
- HOME IN NEGATIVE EQUITY– If you are one of the unlucky homeowners to have a home in negative equity then please remember you are only in negative equity if you sell your home and move. If you stay in your home and ride out the recession you are likely to pay off some of the capital over the next few years and you will probably see house prices improve. It happened like that back in the 1980’s when a house in negative equity, costing £20,000 then is now worth around £140,000. More money saving tips that will save you money.
- REMORTGAGE YOUR HOME– Remortgage to the best interest rate available for your current circumstances at the end of a mortgage deal. Contact a mortgage adviser that offers mortgages from the whole of the mortgage market as they will find you the best mortgage product available for your requirements. Beware of the mortgage adviser that use a panel of lenders they will only offer you the best mortgage product from their panel of lenders. This could cost you thousands of pounds over the term of the mortgage rate compared with the best mortgage rate had you had it from the whole of the market. Do not just look for a quick mortgage, look for the right mortgage.
- FINAL TIP –Money saving tips suggest eBay provides a quick way to turn possessions into cash quickly. A few years ago my youngest son asked for a brand new Sony PSP and as a dutiful father my answer was no. So he disappeared and returned with a pile of toys, books and clothes in good condition and asked me to sell them for him so he could buy his Sony PSP for Christmas. Not to be left out my other son and my daughter did the same thing. We raised £910 and spent £620 on three brand new Sony PSP and games. I then added £10 to the £290 left over and gave my kids £100 cash for Christmas. They did not realise that they had paid for their Christmas present from their old presents and all it had cost me was the listing costs for eBay and £10. More money saving tips that will save you money.
Money Saving Tips Conclusion
These are just a few money saving tips that will help you through this recession. Over the forthcoming months I will be providing more money saving tips to help you survive this recession. Always make sure that you take professional advice before doing anything with your finances as each of us has different situations and circumstances. If you have any money saving tips that have helped you get through this recession then please leave your thoughts and comments below.