With rising energy prices and an increasingly complicated economic environment, many household budgets are getting tighter this winter. That’s why now is a good time to take a critical look at personal and family finances. What are quick and efficient ways to save money? Where to start? Here are some ideas.
1. Cut back on unnecessary expenses
This may seem obvious, as cutting down on unnecessary spending is the best way to save money. However, which expenses you cut is what makes the difference. You don’t have to start from the basic necessities or abandon fun activities.
A better way to spend less is by identifying where invisible spending is happening within a household. For example, are there any subscriptions running that aren’t being used? Think about streaming services, premium accounts for unused software, and so on. These would be great candidates for cancellation and savings.
The next step could be revising the household’s buying behaviour. For example, are items bought just because they are affordable or on sale? This practice may not be beneficial this winter. Instead, what could help is making sure only necessary items are purchased. Look for cheaper versions of favourite products. Sometimes that means going for a less-known brand. The switch doesn’t have to mean a sacrifice in quality, though.
An additional tip is to join second-hand/reselling platforms or groups online. There, you can often find (almost) unused high-quality items for a fraction of the retail price. This can be a cost-conscious way to buy anything from clothing to household items and children’s toys. No to mention, it’s good for the environment.
2. Find new ways to increase your income
If cutting back on expenses is not possible, then there may be a way to increase the household’s income. For example, by dedicating a few hours a week to a freelance side job. There are plenty of freelance opportunities out there that fit any level and type of skill and could be a valuable addition to any family budget. A good place to start finding a project is with one of the many freelance websites including Elance and Upwork.
If freelancing is not an option, another good way of making money is to sell unused or unnecessary items. Every household has its treasures hidden somewhere in a cupboard, collecting dust. Get them out, clean them up, and see if you can make someone else (and your wallet) happy with them.
3. Use prepaid credit cards instead of regular credit cards
Credit cards are very popular because they make it easy to spend money – even when you don’t have it. However, when finances are tight, accumulating credit card debt is something to avoid at all costs.
A great alternative to credit cards is using prepaid credit cards such as paysafecard. Prepaid credit cards are widely accepted, so you would still be able to pay with them on the platforms and shops you are used to. However, the major advantage they have over other payment methods is that you cannot overspend with a prepaid card. Since you have pre-loaded a certain amount on the card, you can only spend that amount, and not a cent more. Until you top up your prepaid card again, of course.
Another great feature of prepaid credit cards is that they don’t require a credit check. You can get a card immediately and top it up easily online on platforms such as mobiletopup.co.uk.
Ready or not, a difficult winter is coming. With our tips and a little extra resilience, you can surely make some more room in your budget, until the economy picks up again.
