As 2022 begins, January is the perfect month to make some small but clever changes to your spending habits. Here is a rundown of our top nine small money moves that could tot-up to big savings on your finances this year.
1.Curb your energy bills
With a potential 50% energy rate price hike predicted for April 2022 now really is the time to take control of your energy deal, and check what tariff you are on, ahead of your renewal date. If you are automatically rolled onto your provider's standard variable rate when your fixed rate deal ends, then you’ll more than likely be paying over the odds. Set a reminder on your phone to check rates ahead of renewal dates, so you don’t miss out on any opportunity to save.
2. Review your monthly subscriptions
Whilst direct debits make regular payments a breeze, they are dangerously easy to lose track of. Logging into your online bank account and reviewing what’s heading out of your account on a monthly basis, is easy to see in a list format. You could well make some substantial savings if you’ve fallen out of love with a magazine subscription, are no longer using a gym membership, or are even paying for services or apps you never use.
3. Give your finances some regular attention
All too often we just expect our money to take care of itself, but avoiding looking at your bank balance isn’t the best way to get a grip of your day-to-day finances. Diarising time monthly to see how healthy your bank balance is, will help focus your mind and change your habits to get things where they need to be.
4. Make your cash savings work harder
With UK inflation at a high, it’s not easy to make much from cash savings currently, as to be successful here, you need to find a savings account with an interest rate that beats inflation. There are preferential current account rates out there though, with more competitive rates, usually requiring you to keep a minimum amount of cash in them and save a certain amount each month.
5. Divide and conquer
Whether it’s home renovations, or your next holiday, work out how much you need to save and divide it up by the number or months you have to save, and set yourself a target.
6. Power up your pension
Yes, we know it’s not the most exciting of thoughts, or the most enticing way to save, but establishing and committing to what you need to save for the future, now, and you may find your employer contributions go up too. If you have multiple pensions, seek advice from an Independent Financial Adviser as to whether it makes financial sense to consolidate them into one pot to make managing your retirement income easier. The Association of British Insurers (ABI) estimates there are currently 1.6m ‘lost’ pension pots worth a total of £19.4bn sitting unclaimed, so if you've had multiple employers and moved house but not updated your address, then this is an exercise worth doing.
7. Pledge to not buy anything ‘new’
This new year’s resolution is one that pays dividends on the planet, as well as your pocket. Aim to shop the contents of your cupboards first, and if they don’t come up with the goods, then head for second hand. Facebook marketplace, local reuse groups and charity shops themselves are flooded with nearly new items looking for a new home. Depop, Thrift + and Ebay are teaming with designer labels if you know what you're looking for.
8. Set up a budgeting app
Getting a full picture of your weekly and monthly spending can show you exactly where your money is going. Our favourites are ‘Snoop’ and ‘Plum’.
9. Consider changing your current account
With switching now seamlessly easy, some banks will offer you a cash incentive for moving your current account to thiers, which can boost your savings upwards of £100.