Five Money-Saving Tips

Unless you've been 'living under a rock' for the last year or so, you can't have failed to notice the cost of living creeping up. Austerity measures include cutting back on public spending and increasing VAT. Add to that the rising price of oil, which has led food prices, energy bills and the cost of travel to soar and you can see how things are getting more expensive for everyone.

If you need to rely on credit to meet your monthly outgoings, it's time to consider readdressing your budget and/or getting financial advice from a professional.

You might also want to consider a budgeting account - a type of bank account that only lets you spend money that's left after your bills have been accounted for. One example is the thinkbanking budgeting account.

There are many reasons to begin budgeting. If you're carrying debts, you're probably going to have to live within a reasonably strict budget when you repay them.

Here are five practical money-saving tips:

1. If you travel to work, consider public transport if possible - it could be a fair bit cheaper, especially if there's a season ticket available. If public transport isn't an option, consider car-pooling with colleagues at work, which will save money on petrol and the wear and tear on your car.
2. Use vouchers for online purchases. Voucher websites can save you money on purchases you would have made anyway and can also help you get free delivery. If you are looking for a particular item and you put the research in by visiting different websites, you may find the price varies considerably.
3. When you do your weekly shop, consider signing up for a 'loyalty' card, allowing you to save up points which can be redeemed later on. You can also take advantage of promotions when extra points are offered on certain goods - make sure you need and want those goods, though, or it could be a false economy.
4. Get creative in the kitchen and consider cooking large amounts of food that can be frozen. This could save you time and money - when you consider that each individual visit to the supermarket is laden with temptations to buy non-essential items and treats, you can avoid that situation if you have food prepared for the week already.
5. If you make purchases on a credit card, do you always repay the full balance? If you consider that a typical credit card's APR is around 18.5%, that means you could be paying 18.5% in interest over 12 months on that item.

Budgeting doesn't have to be difficult, but it takes determination not to borrow money - and only spend what you have coming in.