This may sound like scaremongering but the statistics back this up. It is facts, not some people trying to scare you in the name of making news. It is why you need to take control of your finances – and why you need to make savings and cut back anywhere that you can.

Tips to Save Money

As ever we like to be helpful. So, since we live to serve, we have collected this wonderful list of tips to help you save money.

· Assess your finances. It is amazing the amount of people that are paying out money that they don’t need to – and aren’t even aware of it. Old mobile phones they forgot to cancel, gym memberships they don’t use any more, book memberships that just go in the bin – anything you are paying monthly for but forgot about. You can save a lot of money on this.

· Look at your bills. Are you paying too much? Shopping around on everything from mobile phone contracts to your car insurance can end up saving you hundreds a month. And don’t be afraid to negotiate – it is amazing the deals some companies will give you if you suggest that you are going to move to a competitor.

· Trade down. Do you really need that expensive car, for example? If you have an expensive high ticket item like that (or even your home) you might be able to save considerable amounts of money by trading to a smaller one.

· Sell your junk. Ebay, car boot sales and the like are becoming more and more popular – and have a market of buyers who could well be interested in buying what you consider to be junk.

· Buy 2nd hand. Just as you can make good money at 2nd hand sales and websites so too can you buy bargains… so look around there and see if there isn’t something that you were going to pay full price for.

· Trade in on a skill. Right now people are trying to save money – they don’t want to pay massive garage fees when they could pay someone who can fix it for a lot less. They don’t want to pay full prices when they can bring in skilled amateur labour. Anything form tutoring to writing can be utilised by someone.

· Get freebies. Online there are a huge number of freebie sites – and it is amazing what you can get for free. But even if you don’t get lucky with these you can still look at using your local library to get free books, DVDs etc. Also look to the Internet to get you free music through legal applications such as Spotify.

Obviously you will be able to save a lot of money by other methods too – but this should get your brain thinking at the very least.

Here are 4 money-saving tips not just for the holidays but all year round as well:

1. Set aside a percentage of your monthly income as savings. It doesn’t really matter how much amount you save as long as you stash some of your savings in the bank. It will become handy in future emergencies. You’ll never know what will happen. But if you have some cash stashed somewhere, it will certainly give you a certain feeling of security and wellbeing.

2. Back to the basics. If you’re dead serious about cutting back or your overheads, then simplify your life. Cut back on expensive dinners, roaming in the malls, eating at fast food centers or watching movies at the video arcades. Limit your calls. Make do without cable TV. Buy classic dresses whirr never go out of style. If you have a compulsion to buy things which you do not need, control yourself Instead stash that one hundred dollar bill in a safe place in your wallet. You will have ended with nothing but more savings.

3. Become a handy woman. With all the sophisticated tools and paraphernalia that are available in the market, any woman can handle things that men normally do — like repairing the faucet, screwing things and repairing the car. Just because you’re a woman is no excuse for not doing men’s jobs. With the high costs of home repairs, it is but practical to do things yourself if you can help it. However you can refer the difficult things to the professionals.

4. Make a list of the things that you need to buy and stick to it. Sometimes we are tempted to buy things we do not need because of some promo sales like “buy one take one.” Do not give in to these sales talks. Hold on to your purse. Forget the urge.

5. Forced savings. Dream big. The best way to save money is to have some short-term and long term financial goals in sight like a down payment for a car or a house. It is much more motivating if you have a dream or goal to pursue.

Why so Popular?

Although this type of savings account offers lower interest rates compared to a traditional one, it appeals to a lot of consumers because it allows them to earn whilst providing them immediate access to their money when they need it. Some institutions don’t impose restrictions on withdrawals such as giving notice before taking out cash or paying penalty fees.
Apart from accessibility, the bonus rates offered are also an attractive draw. These bonus rates are usually tiered and run for a certain duration only depending on the financial institution that you invested in.

New Accounts Available

The most recent easy access account products launched are from Alliance and Leicester and Coventry Building Society. Under the Alliance and Leicester online saver account, consumers will be paid 3.15 percent and up to 2.65 percent in bonuses.
Coventry Building Society is offering a higher rate on instant access accounts — 3.25 percent. However, this investment is available only to residents aged 50 or older.
The Principality Building Society is offering a saver account that will earn you 2.85 percent in interest plus a bonus of 1.20 percent for the first year. Take note that this type of account can only be registered in and maintained through their online system.
Another institution that offers more than 3 percent in interest is the Nottingham Building Society, which will pay its savers 3.15 percent on accounts. A minimum of £1,000 pounds is needed to open this account however, and the institution requires that you give notice before withdrawing money.

A Word to the Wise

Whilst this type of savings account presents appealing features, it is of import that you get a thorough understanding of how it works before you decide to invest your money. Bonuses are often applicable only for a limited amount of time and after a few years, your savings might not be earning as much as you’d expect.
Keep track of your savings account so you know when to start moving your resources elsewhere. After a year, it may be practical to move your investment to a higher paying, regular savings account.

Is this your future, as well?

Being money-savvy

Saving for early retirement is a goal that inscribed purpose on the way you earn your money. You want to rest easy after a few years- this is why you’re saving. According to Don Blandin, president of the American Savings Education Council (ASEC):

“Consumers should immediately: 1. write down their financial goals and commit to saving regularly; 2. pay down their debts; 3. set aside an emergency fund; and 4. do a retirement savings calculation. Consumers can figure out how much to save by using ASEC’s Ballpark Estimate worksheet at www.asec.org or www.choosetosave.org.”

Starting out small

How can a person understand his or her own spending patterns? Often, a person is no longer aware how important the “small” purchases are to the final sum that is the monthly expenditure. Blandin has a recommendation for such conundrums:

“For two weeks, I would like for you to walk around with a little spiral notebook that will fit in your pocket or purse. Write down every expense–large and small. After two weeks, sit down with your spending list and grade each expense A through F. [Items with an A grade are things that you "absolutely" need, and items with an F grade are things that you "absolutely don't" need.] Those that get a D or F are out of your life. If you need to free up more money, then maybe the Cs can go away, too. You will be amazed how much money re-enters your life.”

Money-saving tips

After beginning the process of saving, you can now begin to initiate other means of saving money. If you have debts start negotiating with lenders so that interest rates may be waived or at least reduced. Also, buying a home would be a wiser decision than just renting a flat until your kids get older.

Curtailing your personal expenses, including your budget for movies and “eating out” will also significantly increasing your saving power. Also, services like dry cleaning should be reduced or minimized. Getting your own machine and doing your own laundry is better.