Only a couple of weeks ago a number of senior economists were saying that world economic conditions might not result in a serious depression. Now, I’m no expert but looking at the recent drops in the worlds stock markets (1st July 2008) show that these experts may be a little too optimistic. Even GM, the American vehicle manufacturing powerhouse, is faltering with stock value at around $10 per share – the lowest price since 1954. There are even fears that GM could declare bankruptcy. So, if the big guys are struggling how do you think you will cope?
It’s not going to be easy but maybe you can save enough money to ensure you maintain a relatively comfortable lifestyle.
I’m going to give you 5 tips that may just help you through the hard times. Ready? Let’s go.
1. Change your mortgage. I know this is a sore subject, especially in the UK. Many lenders are refusing to shift interest rates downwards in line with the Bank of England rate changes. There’s not a great deal we can do about this but there are still some good deals around for home owners who want to move house. If you already have a mortgage but don’t want to move think about overpayments i.e. on a mortgage of £100,000 at 6% you pay £643 per month. By paying an extra £100 per month you reduce your mortgage term from 25 to 19 years. Now that’s 6 years of spending money on yourself once your mortgage is cleared which is nice thought.
2. Wipe out your credit card debts. Fairly self explanatory. On average, credit card interest is around 15%. Saving that little extra each month means less time paying off your debts at extortionate rates.
3. Switch energy supplier. Major companies are falling over themselves to encourage new customer sign up. When a salesman comes to call, don’t turn him away. Listen to his offer. If it sounds good; sign up. “But what if the deal turns out to be poor?” – move to another supplier. There’s no hardship. Sign the forms for your direct debit, sit back and let the supplier do the hard work.
4. Water meter installation. Do you own a large house with only a few people living there? Then get a water meter installed. You’d be surprised how much money you actually save.
5. Shop online. There are huge number of stores that maintain both a physical and web based presence. Go to town, find what you want, then go home and order online. Wherever you can, try to find discount codes to save money.