There are a number of ways you could build up your savings this winter (Image: Getty Images/iStockphoto)
UK inflation has reached its highest point since March, propelled by a spike in petrol prices last month, the latest official figures reveal. The Office for National Statistics (ONS) disclosed that Consumer Prices Index (CPI) inflation rose to 2.6 per cent in November, up from 2.3 per cent in October.
The CPI inflation rate for food and non-alcoholic drinks, alcohol and tobacco, clothing and footwear, recreation and culture all experienced slight increases over the year to November, compared with the year to October. These fresh statistics carry significant implications for anyone spending money this festive season as it means the cost of living crisis will continue to gnaw away at household budgets into the new year.
Alongside the inflation hike, energy bills are also set to rise marginally from New Year’s Day. Households on the standard tariff, with typical average usage, will see their bills increase from £1,717 to £1,738 from January 1 – an increase of £21 over the coming year (£1.75 per month).
However, if you’re concerned about managing your bills and keen to start reducing your outgoing costs and make some savings before the new year, there are several strategies to ease the burden. While the savings – if you can implement all 10 of these cost-cutting tips – could be substantial, the reality is that you only need to achieve one or two things on the list below to start improving your personal finances, reports the Daily Record.
Here are 10 tips to help you save money and reduce costs this winter:.
1. Small changes can make a big difference
According to Smart Energy GB, simple adjustments at home can lead to significant savings. Opting for a quick shower instead of a bath could save approximately 70 litres of water each time.
Washing clothes at 30 degrees can also cut down on electricity usage. Additionally, turning off appliances on standby before leaving for work or going to bed can help.
2. Keep your boiler in top shape
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The Gas Safe Register suggests that servicing your boiler can help lower energy bills by ensuring it runs efficiently and reduces the risk of future breakdowns. Despite tight budgets, it’s crucial to ensure gas appliances are safe.
Warning signs to look out for include lazy yellow flames, pilot lights that frequently go out, black marks or stains around gas appliances, and increased condensation inside windows.
3. Look into grants and benefits
Certain individuals may be eligible for financial assistance during the colder months including:.
£150 Warm Home Discount – for those on a low income on certain benefits.
£25 Cold Weather Payment (not Scotland) – £25 for every 7-day period of freezing temperatures.
Winter Fuel Payments (up to £300) – for pensioners on means-tested benefits.
£58.75 Winter Heating Payments – for low income Scottish households.
£251.50 Child Winter Heating Payment – young people under 19 on higher rate disability benefits.
4. Other bills you could cut
Take stock during the festive fortnight to look at all your outgoings and make sure you’re paying for products and services you actually use. If you have multiple streaming subscriptions, make sure you’re getting value for your money and ditch the ones you rarely watch.
5. Cut commuting costs
Whether you’re adopting a hybrid work model or are back in the office full-time, keep an eye out for seasonal deals on travel cards. Investing in travel discount cards could save you up to a third on train tickets.
6. Save on food
Creating a shopping list can help you stay focused and potentially reduce your spending. Visiting your local supermarket when they’re likely to be reducing prices could also help keep costs down.
At this time of year, supermarkets often overstock on seasonal items to avoid running out, leading to plenty of bargains. The price of vegetables has been reduced to as little as 10p, so it’s worth stocking up – with proper storage, they can last well beyond Christmas.
7. Consider a cheaper mortgage deal.
For many, their mortgage is their largest regular expense. The Intermediary Mortgage Lenders Association (IMLA) suggests that even those who believe they may struggle to switch should consider checking.
Their research found that 88% of mortgage providers would accept applications from self-employed borrowers, and 71% would consider those with irregular incomes. Due to the disruption caused by the coronavirus pandemic, 16% of lenders have reduced the periods for which self-employed borrowers need to show earnings records.
8. Organise your savings
If you have any spare cash, ensure it’s accruing some interest. If it’s not generating at least 5 per cent currently, transfer it to a better deal.
Use a comparison website to find the one that suits your savings needs.
9. Be patient when Christmas shopping
With just a week left until Christmas, and many people likely to receive their December salary early, resist the temptation to overspend and panic purchase last-minute gifts for family, friends, neighbours or colleagues. An early salary in December means a longer wait until the next one in January, so monitor your expenditures.
10. Book Christmas train travel tickets in advance to save money
Trainline suggests that booking your ticket in advance this Christmas could result in a 61 per cent saving on the fare. Book early to secure the best deal.
