If you're looking to cut back on your spending, you might find some of the biggest savings without ever leaving the house. Saving money begins at home, here's where to start.
How to save money at home
For many homeowners, the mortgage is their biggest monthly expense, but it may also offer the biggest savings. Say you owe £100,000 over a 20-year term, and your mortgage rate is 4.5% your total monthly capital and interest repayment will be £640, or £7,680 a year. If you switch to a deal charging 3%, your repayment will fall to £560, or £6,720 a year. That's a saving of £80 a month, or £960 a year.
Do your sums carefully, and watch out for arrangement fees on your new deal.
Home energy bills
The average household will spend £1,346 on gas and electricity this year, according to Ofgem. With winter approaching, that's a growing worry for many households. You can turn down the heat on your finances by shopping around for a cheaper tariff, using a price comparison site. It takes 20 minutes and you could save £200 a year. Follow these 8 tips to save money on energy bills.
Become energy efficient
You can also cut your utility bills by adopting simple energy saving measures. Turning off appliances left on standby, setting your washing machine temperature to 30°, never overfilling your kettle, turning down the thermostat 1°, using draft excluders and fitting a water-efficient shower head can all cut your bills.
Cavity wall insulation can cost up to £500, but save you around £145 a year. If you haven't got it, loft insulation should also save you around £150 a year.
Find more tips from the Energy Saving Trust.
Cut your water bill
If you're relatively light user of water, you could save money by having a water meter installed. Try this water meter calculator, to see if you would save money.
Cut your insurance bill
When your household insurance policy comes up for renewal, shop around to get a cheaper deal. The average householder who compares rates online saves £70 a year, according to research from MoneySupermarket.com. (5)
Save a bundle
Your landline, broadband and digital TV can add up to hundreds of pounds over a month. You may be able to make big savings by bundling them all together, getting them all from a single provider, (possibly including your mobile as well). Websites such as Broadbandchoices.co.uk can help you find the best deal.
Remember, don't pay for broadband speed you don't need, or digital TV channels you never watch.
Claim council tax reduction
You can get money off your council tax bill if you are on a low income or claim benefits. Both homeowners and tenants, workers and the unemployed, may be able to claim this means tested benefit. Elderly people especially neglect to do this.
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