2011 fireworks Perhaps the biggest single cost-cutting measure you can take is to rationalise your debt. Work out how much you can afford to pay off each month and set up standing orders. Ditch store cards with their sky-high interest rates and reduce your overdraft limit, to reduce temptation to overspend.
Review your mortgage if you still have one. If you can afford to pay a little extra now, the long-term savings will be substantial.
Mind the sales! Only buy an item in the sales if you would have bought it anyway. Otherwise, where is the saving? You are just spending money you would not otherwise have parted with.
Make a will If the worst happens and you have no will, your family could face a big inheritance tax bill. Sort it out.
Use Freecycle at www.uk.freecycle.org to obtain other people's unwanted goods for free. Meanwhile make your own contribution by donating your unwanted items.
Review your insurance policies and pension New Year is a good time to take stock of these. Do you really need that appliance cover? Are you paying too much for your home insurance? If you have not started taking your pension, are you happy with it?
Get rid of unused calling features in your phone Do you need call waiting, call minder, call divert etc? If you already have an answerphone you may not need anything else.
Drink water when eating out Drinks in restaurants are marked up quite substantially and add a large chunk to the bill. Ask for a jug of water.
Have coffee at home Just one cup of coffee a day in one of our overpriced high street chains can cost you £1,000 a year – a staggering figure. Take your beverage at home and make big savings.
Buy small tins of paint if you are planning on a New Year decorating spree. You will waste less paint on the small tin than you will by letting the big tin dry out and get dirty. And unless you are planning on painting a big area, you could just be wasting paint and money as well. Think how many trips you have made to the recycling centre with half-full paint tins.
Written by Andrew Stucken, the opinions in this article are the author's own and for general information only. Always seek independent financial advice.