Buy, don’t rent
Although getting on the property ladder in today’s economic market isn’t exactly a piece of cake, buying is definitely a more cost-effective means of living than renting. Not only is the monthly cost of renting generally higher than a typical monthly mortgage rate, you’ll end up with exactly what you started with: nothing. If you buy your home, however, you’ll have reached the first rung on the property ladder, pay fewer monthly costs, enjoy an improved credit score and, if you do decide to move, have something to sell and barter with. You won’t be at the mercy of a Landlord, either. The government has pledged to make it easier for young people to save deposits and buy new homes by introducing the new Help to Buy scheme.
Lease cars, don’t buy them
Cars are money pits, particularly luxury cars. They cost a bomb and the second you drive them out of the dealership, they instantly depreciate in value - by a lot. Cars go out of fashion quickly, too, with new and improved, ultra-flashy with brand new gadgets constantly being put on the market. If you buy your car, it’s extremely likely (in fact, pretty much guaranteed) that by the time you come to sell, your car will have depreciated significantly in value and you won’t be able to recuperate the money you spent on it in the first place. This is especially likely to be true if you bought your car brand new and it ultimately means that you will struggle to find the cash to finance an upgrade. With car leasing, on the other hand, you simply pick out the Audi or other luxury vehicle that you want, and rent it for a set period of time. The monthly amount you will be required to pay is calculated at the start of the lease, and will remain constant throughout your lease period. At the end of your lease period (typically around 2-4 years), you will simply hand the car back and go on to buy a new one. The only potential downside is that you won’t own your car, but not being the registered owner of your vehicle could be a blessing; it means you don’t have to worry about how much your car has depreciated over the time you’ve been driving, or how you’re going to sell it on the market worry
Reduce your energy bills
The average gas and electricity bill now amounts to around £1000 to £2000 a year. Reducing your energy bills by switching supplier may benefit you financially as energy companies are legally allowed to increase their prices by 10% to reflect inflation. It’s quick and easy to check whether you could get a better deal with an alternative supplier and it isn’t hard to switch, either; your new energy provider will be more than happy to get everything set up and sent over to you.
Changing your lightbulbs is a good way to save money on your electricity bills. Changing to energy-saving lightbulbs is both environmentally friendly and cost friendly. The bulbs last longer, too, meaning there’s less practical hassle for you as well. There’s also such a thing as a ‘phantom charge‘; the term is used to describe the tiny amount of electricity that flows to items that are left plugged in to the mains but not used (such as phone chargers, microwaves and TVs when they’re not in use). The amount used on them is admittedly tiny, but it has the potential to add up and, over time, become a significant amount.
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