The Credit Crunch Expert
1.
By far, the most important change I am going to suggest you make to help
you beat the credit crunch is to adopt the "envelope system".
Each week I withdraw my spending money for the week and divide it into 6
envelopes:
Envelope 1 - Bills - £30
Envelope
2 - Adults x 2- £60
Envelope 3 - Kids - £30
Envelope 4 - House - £20
Envelope 5 - Food - £70
Envelope 6 - Fuel - £30
Of course, your envelope names and the amounts you put into them is specific to you and your circumstances however the golden rule is that everything you buy MUST come out of the relevant envelopes and that is all you can spend. No cheques, credit/debit cards or trips to the cashpoint. If you dont spend it all then it stays in the envelope and accumulates to be available for a larger purchase.
2. Consider changing your banks. As a result of the credit crunch most banks will now do all the hard work for you because they want your business. The more deposits they can now get the more stable their position is in this economic climate.
Click
here to contact your bank.
Click
here to compare Current Accounts.
3. Have a look at some of the current account options your existing bank offers. For a small monthly fee you can often find accounts that will give you extras such as, free overseas transactions, breakdown insurance, travel insurance and an agreed overdraft limit so those small trips into the red dont cost you a fortune. These are all things you are potentially paying extra for each year which you could have included as part of your current account.
Click
here to contact your bank.
Click
here to compare Current Accounts.
4. Exchange your old mobile phone for cash. Visit Mobile Phone Xchange to see how much your old phone is worth.
5. Change your phone, broadband and digital television supplier. Click here to compare providers.
6. Review your monthly "social" commitments. Do you really need the gym membership, season ticket or sky sports. Are you getting maximum value from them or is there a way to combine some costs. As an example, could you go to the gym to watch the match?
7. KICK the habit! You dont need me to tell you how much you could save by giving up smoking, drinking or the daily cappucinos. Why not use the credit crunch as a reason to give up? If you are in any doubt about how much your habits are costing you per week then use the "KICK the habit" calculator on the right of this page. Combine this with the envelope system and you will start to save money.