Bad spending habits and budgeting tips- bills
In our last blog of the series, we are taking a look at some bad habits people have when paying bills. Bills can often be a persons biggest outgoing after their rent or mortgage, and can be a real financial nightmare.
If you feel like you are struggling to juggle your monthly bills you might be guilty of a few bad spending habits! Not to worry, we are here to help you recognise where you can save money, get a better deal, and break those bad habits once and for all.
Bad spending habit one- spending over the odds for fuel bills
Fuel bills now cost households an average of £1,500 a year, but many people don’t realise how much money you can save simply by switching provider. If you have never changed your original supplier, by choosing a better provider you could save more than £300 a year. If you’ve switched before, you can still shop around for a better deal and switch again but you might not save as much money.
It is always worth keeping an eye on price comparison websites every few months to see if you can get a better deal than your current one. Also, take a look at any smaller firms that might be supplying gas or electricity in your area. You might be surprised how much money you could save by checking out suppliers other than the “big six”.
If you think your gas and electricity prices are currently very low, and don’t believe that they will decrease in the near future, ask your provider about freezing your bills for four years.
Bad spending habit two- not taking advantage of broadband, TV and phone deals
There are so many introductory offers for broadband, TV and phone packages. If you decide to go for one of the many all inclusive deals for all three you may get a discount, but it’s also worth checking out the individual costs for your area to see if you can save any money.
Before you decide to go for the biggest and best package a provider has to offer (after a very convincing chat with a sales person, I’m sure) try to consider your usage habits. If there is just one or two of you in the house, unless one of you is into online gaming or downloads, it’s highly unlikely that you will need the fastest package with the “unlimited” downloads option.
If you do take out a plan with limited usage, make sure you regularly check how much internet you have used to avoid any excess charges.
Bad spending habit three- having unused texts, minutes or data on your mobile phone contact
How much do you pay per month for your mobile phone contract, and what exactly are you paying for? How much of it do you use?
You may be in the position of having a mobile phone contract that offers all the bells and whistles you could ever think of, that are no use to you whatsoever. If you use your phone sparingly or predominantly for music, pictures or emergencies, you might save a lot of money by forgoing the contract and switching to a pay as you go phone. This way, you will only pay for what you use, and you could end up saving a substantial amount of money over the year!
If you would like to have both a tablet and a mobile phone, you could look at combining the two in a contract deal (if you know you would be using both of them often). Some deals even offer tablets as free gifts if you sign up for a contract, along with many other great gifts.
If you know you need a phone contract, buying online usually works out cheaper than high street shops. Have a look at E2Save or OnlineMobilePhoneShop and see if you could save.
Bad Spending Habit Four- falling for insurer tricks
Many insurance companies will simply be looking to get as much money from you as possible. Consumer group Which? has just released research detailing the eye-watering fees some insurers charge, simply for changing a name or cancelling within the first 14 days. For a breakdown of the best and worse car insurers in relation to fees. You can find it here.
Again, price comparison websites are you friend here. Make sure you don’t just look at the price, but everything the insurance will cover. For example, the cheapest home insurance policy could cost £3 a month less that the second cheapest one, but might not cover fire or water damage. Make a list of everything you want your insurance to cover, and check it off against each policy you find. Sometimes it might even be worth approaching your current insurer as a new customer to see if you can get a better deal.
There are ways to substantially reduce your monthly bills if you take the time to do your research. Little known companies often have better rates than the bigger contenders, especially the local ones.
If you have any more money saving tips when it comes to bills, please let us know by tweeting us @Financialuk .
For further help on beating your bad spending habits, please take a look at our previous blogs in the series, covering food, travel and entertainment.
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