Many New Year’s resolutions actually cost you money – like language courses that you give up on halfway through the term or expensive gym memberships that don’t ever get used.
In fact, according to a survey that was conducted last year by TalkTalk, over our lifetime, we spend an incredible £21,000 on our New Year’s resolutions – mainly on health foods, new trainers and gym memberships.
However, this year, why not do something different and try making up for some of those less than smart resolutions you have made in the past and instead focus on resolutions that can save you money instead of costing you.
The following are 11 New Year’s resolutions that can save you money:
1. Quit smoking
Or course, it is a lot easier said than done. However, you can save a significant amount of money. For a 20-per-day smoker, you can save more than £3,000 per year. If it is too much for you to go cold turkey at the moment, e-cigarettes cost only a fraction of what regular cigarettes do.
2. Avoid impulse buying
Always make a list and set your budget before you go shopping – and don’t ever shop for food if you are hungry, since you will end up spending too much on junk food. When going clothes shopping, don’t get too carried away when there is a sale. After all, there is a reason why that poorly-cut top didn’t sell at the regular price. If you can’t trust yourself to behave, take a fixed amount of cash and leave your credit cards at home.
3. Go through your bank statements very carefully
It is so easy to allow direct debits and standing order to carry on for a lot longer than you were intending. You might have thought you signed up to get a temporary package on something like an Amazon Prime trial, and neglected to read all of the fine print, or are continuing to pay for insurance on a product you don’t even use any longer. Check each month for an entire year, because some firms bill you annually or quarterly.
4. Get your debts sorted
Concentrate on your really critical payments first – things like your utilities and mortgage. If you have several credit card debts to pay off, first pay off the ones with the highest interest rates. However, make sure to always pay at least the minimum payment on your other ones. If times are tough, talk with your lenders, since they might be able to set you up on a new payment plan that is more manageable for you.
5. Shop around to get a better phone deal
It is common for people to pay for data, texts and calls they don’t ever use. Be sure you are aware of when you contract is ending – a majority of contracts combine the cost of the handset and tariff, and some will charge on the handset part well after you have paid it off.
6. Save on your energy costs
Changing to energy-saving bulbs from traditional ones can save you as much as £60 per year, and you can save a similar amount when you insulate your hot water cylinder. Locate and seal gaps that let in drafts, place reflecting foil behind your radiators, and think about replacing any old energy-hungry appliances you have. Devices should never be left on standby.
7. Remove the clutter from your house
The auction house Bonhams reports that as much as £60 million worth of jewellery is hanging around in the country’s attics and cupboards. Just getting rid of old clothes, furniture and toys can bring you a surprising amount of money. Try out websites like Gumtree or eBay or have a garage sale to get rid of unwanted items and make some money in the process.
8. Shop around for the best utility suppliers.
A guide has been created by the regulator Ofgem that allows you to determine whether you would be better to purchase electricity and gas elsewhere. Although there isn’t any guarantee that the current least expensive tariff will always cost less, you can still potentially save a lot of money. The government has been attempting to make it easier for people to switch suppliers- it usually takes less than three weeks currently.
9. Negotiate when you are renewing a contract
Numerous phone service providers, insurance companies and others offer new customers much better deals. Even if you are happy staying with your same company, it is still worth it to task for a deal. Say you are considering leaving, and be sure you know what others are offering.
10. Start saving money
Give up something small, and save the money. Just do without that cup of coffee that costs £3 that you get on your way to work. Over one year, that will save you £780. Ride your bike instead of the bus, make you own lunch. You could end up saving thousands. You can also try the Penny Challenge, read more about it here.
11. Freebie and Coupon Sites
It may sound like common sense, however try to adopt a policy to ‘shop around first,’ particularly when it comes to purchasing things like appliances and gifts. There are many different price comparison websites that can be used. Also go to Google and check for free coupons that could be valid for online stores you are thinking of buying from.
An excellent way of saving money every day is checking whether you are getting the best deals from your favourite supermarket. For instance, MoneySavingExpert tells you whether you would be better of doing your weekly shopping elsewhere.
If you don’t want to give up your favourite supermarket, there is great Downshift Challenge tool offered by MoneySavingExpert.com that will tell you the amount of money you could save if you just switched from premium to no-frills brands. You could save yourself hundreds of pounds each year. That is definitely something worth celebrating.
