My husband and I like to think we’re pretty savvy with our money. We use comparison sites to find the cheapest insurance policies, and I’m often seen looking for “yellow sticker” items in supermarkets.
But like many families, we were alarmed by the rising cost of our weekly store and our astronomical energy bill. Our family budget has come under pressure from all directions: from stuffing our Seat Leon to the price hike of 20 pieces at our local fish and chip shop.
It is not possible to change our energy bill at this time as there are no competitive offers and we have recently moved our broadband, auto and home insurance so I know they are between de good hands.
I challenged myself to reduce our other expenses through smart trading and haggling.
Our family budget has come under pressure from all directions: from filling up our Seat Leon to raising the price of 20 pieces at our local fish and chips
MORTGAGE
Our lender has sent a letter reminding us that our fixed rate is ending soon. I check to what rate we would fall if we did nothing. Gasp! The answer is 4.24 pc. Our current rate is 1.26 pc.
I call London & Country (L&C) Mortgage Broker for advice. In addition to researching the market, he recommends checking the rates offered by our lender, as they often offer deals for existing customers. There are two options: a fixed rate of 2.34 pc over two years and a fixed rate of 2.16 pc over five years.
The five-year rate – which is £1,432 per month – looks competitive in the current climate and we are making the switch.
Before: £1,770 per month
After: £1,432 per month
Annual savings: £4,056
But like many families, we were alarmed by the rising cost of our weekly store and our astronomical energy bill.
BANK ACCOUNT
Our joint Nationwide FlexPlus account costs £13 per month. We retired it years ago because it offered 3% interest, plus free travel insurance and breakdown cover.
However, it removed the interest in 2019 and is the “perks” a saving? For starters, I find I can get annual travel insurance cheaper by buying it outright (I used comparison sites Moneysupermarket.com and Uswitch.com to find the best deal – £27.20 for a year) .
After spotting there is a £175 bonus if you transfer to the HSBC Advance account, I make the switch.
Before: £156 per year
After: £42.54 per year (for travel/breakdown insurance)
Annual savings: £288.46 (includes £175 switching bonus)
FOOD DELIVERY
We have Sainsbury’s weekly delivery, paying £5 for a timeslot. By switching to the saving slots – which have a four-hour window – I can save £208 a year and, as my husband and I now both work from home, it’s handy.
By accepting free delivery offers from Ocado and Iceland from time to time, I can make further savings bringing the annual total saved to £220.
Before: £260
After: £40
Annual savings: £220
By accepting free delivery offers from Ocado and Iceland from time to time, I can make further savings bringing the annual total saved up to £220
TV SERVICES
Netflix has become an integral part of our lives, but do we also need Disney+ and Amazon Prime? I call Netflix to try and negotiate the price – we’re on the basic plan, which costs £6.99 a month – to no avail.
So I cancel my Amazon subscription, saving £7.99 per month. For Disney+ (also £7.99 a month), you can use £8 of Tesco Clubcard vouchers to buy a six-month subscription. I therefore cancel our contract and I will save my Clubcard vouchers to recover them in the future.
Front: £275.64
After: £83.88
Annual savings: £191.76
GYM MEMBERSHIP
For £45 a month I can use the gym, indoor pool, lido and take lessons at my local leisure centre.
Can I reduce the price? I go to ask in person and the receptionist explains that I can upgrade to the £34 subscription. This doesn’t include lessons but, as I tend to only use the gym and lido, that’s fine.
I can also get a free month by referring a friend, so I message a friend who agrees.
Before: £45 per month
After: £34 per month
Annual saving: £166 (including free month)
CELLPHONE
My Sim-only mobile deal is already a bargain: for £10.92 a month I get unlimited minutes and texts, and 10GB of data. However, O2 have announced they are increasing fares by 7.8pc to reflect inflation, so my bill (including VAT) is about to jump to £11.63.
Can I beat hiking? When I call, I’m put on hold for nine minutes before I get the line. Eventually I was offered a deal of £10 for 6GB of data. I usually only use 2GB of my 10GB of data each month, so I accept the offer.
It may only be a saving of £1.63, but the 14pc reduction wipes out the inflationary rise and saves me a few extra pennies.
Before: £11.63 per month
After: £10 per month
Annual savings: £19.56
GRAND TOTAL: £4,941.78