Want to keep on top of your finances – even when bills go up from April? Here’s how to re-balance your budget
1 April 2019| Last updated on 1 April 2019
All Credits: PA
April will mark the start of ballooning bills for some households, with a number of costs, including some utility bills, set to go up.
While switching providers may be one way to save money on bills, there are other ways to spring clean your finances and help rebalance your budget too.
1. Dissect your finances
Get under the bonnet of your household income and outgoings. If you can break down where you’re overspending and look at what you could look to rein in on, it can make a world of difference. Starting a simple spreadsheet and keeping tabs on household bills and upcoming expenses, like holidays and birthdays, can help prevent the risk of being caught short of cash.
3. Cut down on non-essential spending
A recent study from Barclays revealed that millennials spend more than £3,300 (AED 15,877) a year on average on takeaways, eating out, daily treats such as coffees, socialising and clothes. Saving some of this each year could go towards holidays and even the cost of Christmas.
6. Take advantage of re-mortgage deals
Borrowers who are debating whether to refinance would do well to consider some of the latest deals to hit the market, as they could shave hundreds of pounds off their monthly repayments.
Indeed, based on a £200,000 (AED 961,873) mortgage over a 25-year term on a repayment basis, the monthly repayment on the average two-year fixed rate of 2.49% would cost £896.23 (AED 4,310) – which is potentially £260.17 (AED 1,251) cheaper than if they were sitting on their mortgage lender’s standard variable rate (SVR). Borrowers often end up on an SVR when an initial deal comes to an end. Someone on an average 4.89% SVR rate with a £200,000 (AED 961,873) mortgage could end up paying £1,156.40 (AED 5,561) per month.