Ways to cut your spending during the coronavirus

Ways to cut your spending during the coronavirus

We could all use a little extra financial help in this current health crisis. Some people may have lost their jobs, some may be working reduced hours, or some may be taking furlough leave. With schools also closed, there is added pressure to provide for the household. Whatever your circumstances, we’re sure that our tips to reduce your monthly outgoings will help!

Check your direct debit payments
Now that we are spending more time at home, we can use this time to check over our finances to see that everything is in order; something that not everybody usually has the time to do. With online banking accessible to everyone, we can access our bank statements and double check our outgoings and ditch any memberships or plans that we don’t really need or use.

Consider a new mortgage deal
With borrowing rates at an all time low, it is a good time to be on the hunt for a new mortgage deal. According to Zoopla, the average cost of a two-year fixed rate mortgage has fallen from 2.36% on 1st April, to 2.13% now, while the cost of a five year fixed rate deal has dropped from 2.66% to 2.37%. Although there are slightly less mortgage deals available, lenders are still introducing new options for borrowers. So why not see what you could save?

Reduce your energy bills
Now that we’re experiencing some lovely warm weather, we can reduce the time our heating is on (or turn it off completely). If you are still using your heating, try lowering the temperature of this – even just by a couple of degrees. By reducing your thermostat, even by just one degree lower, you could save around £50 a year!

We should also be more attentive to our electricity usage. With us being at home more often than normal it is important to check that unused appliances are not left on standby, and lights are off in rooms we aren’t using. All of this will help to reduce your electricity bill. You could even consider using a smart meter to monitor your utility usage.

Now is a great time to have a clear out of things that you no longer need or use. You might even find some brand new items that you’ve never used before. List them on eBay as other people might be interested in your items. You can have a tidier house and a healthy bank balance with this one.

Check on your savings
With the recent reduction on interest rates it may be worth checking up on your savings account to ensure that you are getting the best return for your money. If you’re not locked into a savings account, you can shop around for the best rates. There are many different savings accounts out there so a comparison site might help you to search for this.

Check your mobile phone contract
When was the last time that you checked your mobile phone contract? If it has been a while, now is a good time to check this as it is likely that you are over paying. If your contract has ended you could swap to a sim only deal which could considerably reduce your monthly outgoings. You can obtain some sim-only deals for under £10 a month!