FSA issues money saving advice

Article source: www.metro.co.uk
Sunday October 12, 2008

With the credit crunch evidently setting in, it is very important that we are very careful about how we spend every penny that we have. It is advisable to spend wisely and avoid spending on non essential items. It is also important for consumers to keep and accurate budgets and track how they spend their money.

To give you more guidelines, the FSA have compiled a budgeting checklist that may be useful in providing vital information on financial matters.

1. 1. Work out if you are entitled to any state benefits. According to the Government’s Directgov, more than £2 billion worth of benefits go unclaimed every year. For those who have children, the parenting calculators can help you work out how much you may be entitled to claim.
2. 2. Keep a diary of all your expenses- try to keep on recording all the items that you have you bought for that week so that you can be able to establish where your money goes; this will help you avoid impulse buying.
3. 3. Make a review of your debits - get rid of any of the services that are still being rendered to you but you no longer need them. It could be that gym or that magazine subscription or that service that you were first given for free and now you are paying fully for it.
4. 4. Check if you are covered already- your home contents may actually cover the loss of personal belongings such as credit cards or mobile phones while you are away from your home. You should be aware of all the benefits that you enjoy as the employee. You should also inquire whether your bank account has any free insurance. Have you taken out any extended warranty for things like electrical items? These may also be covered by you home contents insurance policy.
5. 5. Confirm that you are paying with the cheapest method - some providers charge their clients a levy for using direct debit whilst some utility suppliers may give you a financial incentive for using this payment method.
6. 6. Make the right choice of a credit card - choose the credit card that suits your daily uses. You should also make a decision of how you intend to use the credit card.
7. 7. Think about your financial requirements - make a list of all the items and arrange them according to your scale of preference this way, you will be able to have some money left to meet your other financial obligations
8. 8. Seek help from a specialist - there are a number of financial institutions that offer confidential help. Remember that this is usually done for free; advice like this can help you to clear your debts faster or come to amicable arrangements with your creditors.
9. 9. Reduce the cost of your mortgage, if you are coming to the end of your fixed rate deal or introductory offer, find a cheaper alternative.
10. 10. Compare providers on provision of different services – from gas to telephones also look for the cheapest electricity.
11. 11. Save energy in your home- try to keep check on how you can economise on energy and also try to encourage your family on the same. There are plenty of websites out there which can help you to save money on energy costs.
12. 12. Save on your driving costs- try to look for the right tips on how to drive and still economise on the fuel consumption rate.