A beginners’ guide to saving money

Whether you’re stinking rich or pennilessly poor, money saving is likely to be right at the top of your agenda at the moment. However, cutting back is a lot easier said than done, meaning it’s important to have a plan of action you can use to actually carry it out. From obvious options such as switching your utilities to more niche approaches like getting boiler insurance, there’s a whole range of ways you can put a few extra quid in your pocket each month. Here’s your five point plan for becoming an expert money saver.

1. Review your finances
It’ll be hard to work out where you can cut your spending without knowing exactly where your money is going each month. So set some time aside and tot everything up. Start with your regular fixed bills and then look into more variable outgoings, such as shopping, clothes and leisure. Get an average of these as a benchmark.

2. Switch and save
Most people could save at least something by switching one or more of their utilities – prices change all the time, so what was a good deal yesterday may not be so today. Fixing your payments could be the way to go – at least this will help you plan. And prices rarely go down.

3. Slash your spending
This doesn’t necessarily mean buying less stuff, but thinking about how and where you can get better value for money. Keep your eyes peeled for voucher codes when shopping online. Consider whether taking out a cinema pass is cheaper than regularly paying for single tickets. Subscribe to a magazine for a discount rather than buying it from the newsagent every week.

4. Protect your finances with insurance
We all need essential policies such as buildings, contents and car insurance. But consider how more niche policies could leave you better off. For example, boiler cover could come in very useful when it comes to getting your heating fixed, something that you’re likely to need to deal with at some stage. In some cases, it could mean a repair of your boiler ends up costing you nothing, where there is no excess to pay.

5. Make do and mend
This old wartime saying is still relevant today – and could end up saving you a packet. Consider getting clothes sewn back together rather than replacing them when they develop a small hole. Get your furniture re-upholstered rather than sending it to the tip and hitting the homewares stores at the weekend. The more creative you can be, the more likely you are to be a little better off each month.