UK residents who are credit card holders usually spend huge amounts of money on their day to day life in comparison with the money they earn. This keeps them in huge debts that keep running a higher figure year after year. With a growing population and debts running higher, there is a need for individuals to learn how they can cut back on their spending in order to make higher returns. Instead of holding on to cards that attract high interest rates of up to 17% why not take the easiest option out? Cut back on your spending and learn to save for yourself some money.
Here are some of the ways through which you can cut back on your expenses:
- Clear off any expensive credit cards that you are holding on to. In as much as they offer a more convenient ways of paying for goods, remember that they attract interest. You in event pay more than what you would have paid for the goods you purchased in cash. Learn to save money and use your cash to pay for purchases. If you really need to use cards, then why not acquire a prepaid debit card? It will help you spend within your limits.
- Fuels costs are high and they keep rising. You need to cut back on fuel costs. The cost of running two or three family cars at the same time is pretty expensive. Why not learn to share a car as a family. If you are going the same direction, you can drive out as a family with each member in the car dropped off at their convenient place. The less the cars used, the more the funds will be saved on fuel. Use multiple cars only when necessary.
- Cut on the home phone bills by selecting the cheapest offers in home phones. While you may need the telephone, television, and internet access in the home. Be keen as to the service provider you select and the package you take up. You do not need a service that will let you pay for more considering the fact that you spend less time active at home but a lot more time active outside the home. Be wise to choose an alternative that will let you pay for what you really need and use.
- Make a shopping list for every month expenses. This helps to control impulse buying and lets you know the amount you will need for the month on household items as well as groceries. A monthly shopping list will help you allocate the correct amounts for every family need and set aside some money for savings. A shopping list can help you kick out practices of impulse buying.
- Consider visiting the market. You need to get your groceries at a good price. Forget about going to stores that have taken up groceries from the market and hiked the prices. Go to the market yourself and collect what you need for a week and keep it refrigerated.
- Do not always run for designer brands. Many love to get designer items in an attempt to emulate celebrities. Do not forget that these people are given the designer items for free but do not go buying them. You end up losing more running for designer items while those you are emulating do not spend a dime to look like they do.
- Try the DIY techniques. There are many things that you can do by yourself. Instead of calling for technicians to carry out simple repairs which will cost you more, do the repair by yourself if you are sure on what the problem is. You can always find tips on how to do this by yourself online.
- Learn to put limits and how to say no. Do not be tempted to have all the fun in the world just because you can afford it or you have a credit card with huge maximum limits. Set aside a budget and when you have reached the limits, contain yourself. You don’t always have to go for evening drinking sessions and countless movies just because you will be bored at home. Entertainment has its place and this does not mean going out all the time. You can as well have wholesome self entertainment at home.
- Before making a purchase, ask yourself; do I really need this? You may find that you are making numerous purchases that you do not really need in your life. Cutting back on the purchases means that you get to have extra funds left back for saving. If you were to use your credit card, you will have less debt thus lower interests to pay.