Strapped for cash? Give yourself a pay rise.

Consumer confidence in the current UK economy is at the lowest level since the end of the last recession in 1992.  And with families increasingly feeling the pressure of rising utility, food and mortgage costs, confidence in the future of the UK economy has plummeted to levels not recorded for 26 years, in 1982.*

With consumers feeling the pinch from all sides, it’s no surprise that confidence in the economy has fallen so low.  And if you’re feeling the same way, you’re not alone; according to figures published last week, families suffered the sharpest decline in disposable incomes for nearly a decade during January to March this year.  Ouch.

In light of such a grim state of affairs, here are a few tips to make your income go further each month.  Reclaim some of that money going down the drain in bills and effectively give yourself a pay rise (no grovelling to the boss involved).

1. Switch energy suppliers By all accounts energy tariffs are expected to rise 40% over the next 12 months. Make sure you are on the cheapest tariff available in your area and switch online.  Average saving £303 a year.

2. Take advantage of the supermarket war With cash-strapped families spending less in the supermarkets, major supermarket chains have started a price war, slashing their prices on essential items and creating a range of 2 for 1 offers.  Go shopping with a list to avoid impulse purchases, and try out your local budget supermarket such as LIDL and ALDI.  Save anywhere up to £15 each week. That’s almost £800 a year.

3. Get out of your car With the price of petrol sky-rocketing, save yourself a stash of cash by walking, cycling and taking public transport as much as possible – after all, do you really need to jump in the car to get milk from the corner store? Walking is free, environmentally friendly, and you’ll be doing your heart a favour too – once you see the benefit of walking everywhere you might even be able to chuck the expensive gym membership.  Savings: Anywhere up to £100 a month.

4. Switch to interest free If you haven’t already done so, cut your outgoings by switching to an interest-free credit card for new purchases. Also cut the interest charges on your current credit card debts by taking advantage of an interest-free balance transfer credit card.  Why pay interest when you can pay none? Savings: limitless.

5. Lower your mortgage repayments While the mortgage market isn’t in the greatest shape at the moment, there are still some good deals to be found, particularly if you have over 20% equity in your home. Speak to an independent mortgage advisor for the cheapest deal available for your circumstances, and lower your monthly repayments.  Savings will depend on the size of your loan and interest rate – remember that a discount of even 1% on your interest rate can mean you will save thousands of pounds in interest charges over the mortgage term.

*timesonline.co.uk data

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