Readers Digest
Magazine subscription Podcast
HomeMoneyManaging your Money

Guide To Saving Money At Home

Guide To Saving Money At Home

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

Your mortgage

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 (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 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.

Read more articles by Harvey Jones here

Loading up next...
Stories by email|Subscription
Readers Digest

Launched in 1922, Reader's Digest has built 100 years of trust with a loyal audience and has become the largest circulating magazine in the world

Readers Digest
Reader’s Digest is a member of the Independent Press Standards Organisation (which regulates the UK’s magazine and newspaper industry). We abide by the Editors’ Code of Practice and are committed to upholding the highest standards of journalism. If you think that we have not met those standards, please contact 0203 289 0940. If we are unable to resolve your complaint, or if you would like more information about IPSO or the Editors’ Code, contact IPSO on 0300 123 2220 or visit