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THE COST OF LIVING IS RISING: MONEY SAVING TIPS FOR TENANTS
- RENTAHOLICS
- Apr 4, 2022
- 4 min read
Updated: Apr 29, 2022
So you would have undoubtedly heard, and more than likely felt the financial impact, as prices have rocketed over the past few months. The price of petrol has shot up and soaring bills for gas and electricity have combined with spiralling food prices to stretch our budgets.
House prices and rental prices are also on the list of things that have seen vast increases of late, with home ownership seeming an ever more distant prospect for many first-time buyers.
With all the financial hurdles facing us at the moment, we want to assist you with some money-saving ideas. and help you balance the books.
TYPE OF DEBT
First things first, it is crucial to prioritise your bills into PRIORITY and NON-PRIORITY debts, this will make sure that the most important are paid first.
ESSENTIAL EXPENSES
Normal bills, for example rent, mortgage or electricity are not debts. They are essential expenses. But if you fall behind with any essential expenses, the money you owe is a debt.
PRIORITY DEBT
A priority debt is a debt that means you would lose something if you did not pay it. Because you might lose something, they are more important than other debts. If you have both priority and non-priority debts, it is vital that you deal with the priority debts first.
Example Of Priority Debt | What Might Happen If Not Paid? |
Mortgage or secured loan arrears | Repossession of property |
Rent arrears | Eviction from property |
Council tax arrears | Imprisonment (if refuse or neglect to pay) |
Gas / electricity arrears | Disconnection |
Magistrates court fines | Imprisonment |
Child maintenance arrears
| Imprisonment or disqualification from driving (if you refuse or neglect to pay) |
Hire purchase arrears | Repossession of hire purchase goods |
NON-PRIORITY DEBT
A non-priority debt is any debt that is not a priority. This might include credit cards, unsecured loans and overdrafts. It also includes debts such as water arrears and money owed to family and friends.
All non-priority creditors should be treated fairly. You should not make full payments to one creditor while reducing payments to another. If you cannot afford the minimum payment to any of your non-priority debts, you should make reduced payments to all of them using a pro rata calculation. You can find more information about this in the self-negotiation section.
A debt adviser will help separate your priority and non-priority debts before explaining what options are available to you for dealing with them. You can find free debt charity advice at:
CREATE A BUDGET
If you’re trying to be financially savvy, then you’ve probably heard the advice of making a budget. But why is a budget important anyway?
One of the most indispensable financial habits you can develop is indeed budgeting. However, if you’ve never lived on a budget or haven’t experienced all of the benefits of budgeting, it’s easy to see why it’s such a big deal in personal finance. So, what’s the big deal about budgeting?
In a nutshell, budgeting is vital because it allows you to keep track of your spending, save more money, and limit your expenditure. Budgeting can also assist you in making better financial decisions, preparing for emergencies, getting out of debt, and staying on track with your long-term financial goals.
Simply put, sticking to a budget is an integral part of sound financial management. It allows you to see where money is being spent and where to save, which in turn can be allocated to a different area of your life for e.g. spending less on lunch at work a week, and using this money saved, to put towards transport costs i.e. petrol.
You can access a free budget planner tool here https://www.moneysavingexpert.com/banking/budget-planning.
Remember to be accurate with those figures!
SPENDING HACKS TO HELP YOU SAVE MONEY
f you’re struggling to free up cash to save, here are some ways to reduce your spending without feeling like you’re missing out.
Check your utility providers
Comparison websites allow you compare quotes, to see if you could be paying less for household expenses, such as gas, electricity or broadband. Even saving a small amount each month can really add up over the course of a year. If you’re able to switch to cheaper deals, try putting the amount you’ve saved each month into your savings account. You could set up a standing order so you don’t even have to think about it.
Reduce your spending at the supermarket
Food shopping is one of the biggest weekly expenses for families in the UK. From setting a budget, to planning your meals and storing your food, there's a range of things you can do to cut your spending.
Cut fuel costs
Making small changes can also help reduce possible fuel costs. Here are some ideas:
look for the best prices in your area – even taking a small detour to visit a cheaper petrol station could save you a few pence for every litre
take advantage of loyalty card schemes – the more you fill up, the more points you can earn to exchange for money-off vouchers
accelerate gradually – this saves you needing to use more power than necessary and can also reduce the chance of having to brake heavily
remove any excess weight from the car
lower your windows rather than using the air conditioning when it’s hot
check the pressure of your tyres regularly to make sure they’re at the right level
Cancel unnecessary subscriptions
Whether it’s fitness apps, TV or magazine subscriptions, it’s easy to sign up to different services and then forget about them. Take a look at your transactions and make a list of all the subscription services you’re paying for. Are there any you don’t use? Start by cutting those. Then look at those you do use – are there any you could do without? You could try cutting those temporarily to see whether or not you miss them.
Search for discounts
When shopping online you’ll see various deals and promo codes. Sometimes, you may have to do something like sign up to a newsletter to receive 10% off your next order. Other times there may be a promo code you can find that will offer you a better deal. It can pay to do a bit of online research to find the latest discounts. Like with your bills, if you’re able to, you could add any money you save to your savings accounts.
Look into tax relief and benefits
If you're a PAYE taxpayer, there may be ways you can make savings on your taxes. For example, you could be entitled to tax relief on a uniform you need to buy for work. There are also deductions available if you give to charity, or make maintenance payments, in some circumstances. You may also be able to claim certain benefits from the Government. There’s a Help to Save scheme, as well as Universal Credit and other services that can help with things like your energy costs. Billions of pounds of government benefits and allowances are going unclaimed. You can use this free calculator to find out if you’re missing out:
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