Reducing Your Costs
This is where you can make some significant differences with very little effort. As you will have identified – some costs you have no control over, for example council tax bills and TV licence etc.
We are planning to focus on the costs that you have control over.
The first group are the recurring costs. By changing these once, you continue to benefit each month for the foreseeable future. This group includes things like:
- Mortgage payments
- Insurance payments
- Utilities (gas, electricity, water, telephone)
Take advantage of the cost comparison sites on the internet and better ways of buying the same level of service that are often not well known. Click on the hot link buttons to see how much you could save.
The second group of costs are the variable cost, typically those that you spend on a weekly basis, for example, food. These need concentrated and regular action. The decisions you take when spending on these variable costs are really important if you trying to keep to the Target Amounts on your budget.
These can be as simple as taking a packed lunch to work. If you currently spend £3 a day on lunch, you are spending over £750 per year. A packed lunch can cost less than a £1 a day, so the saving could be £500.
That £500 calculates to over £40 a month that could be used to bring down your debts. It might be a difference measured in the number of years it takes to pay off your debts. This can be achieved, simply by making a change to your daily routine.
Remember, even £10 saved on a weekly basis equals over £500 per year, or the cost of a holiday. Now, this does not only become more fun, but you can begin to realise all the different ways that there are to save money.