A homeowner's guide to saving money: 6 must know tips

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We all know that the cost of living is rising - with monthly mortgage payments topping the bill, not to mention the price of food, telephone and energy bills. If this leaves you feeling rather faint, here is a list of must know tips that could help you to control these growing costs.

Overpayment of monthly Mortgage

Your mortgage interest rate will influence the amount you pay each month on the total sum you have originally borrowed. By adding a little extra to your monthly repayments (even as little as £50), the total cost of your loan will decrease, as well as the interest levied. As an example, by adding £50 to each monthly repayment of a £100,000 mortgage at a 5.75% fixed rate for 25 years, you could make a total saving of approximately £15,000. (Please note that overpayments are usually capped at around 10% - 20%).

Stick to your shopping list

An ever-rising, yet unavoidable cost is your monthly food and groceries spend. By creating a plan or list of all the essential items you require ahead of each shopping trip and sticking to it, you will avoid the temptation of chucking items into your basket that you do not necessarily need. In addition to this, check your local store's website or adverts for the latest deals, and make good use of any money-off coupons, to save that little bit more. This could result in a sizeable decrease on the cost of your usual shopping trip.

Energy costs

As with the cost of your groceries, your energy bills may appear to be ever-increasing. With a multitude of energy suppliers on the market, you will find providers constantly competing on cost. Therefore, regularly check your supplier against the competition to ensure that you are getting the best deal at the lowest rates.

Home Insurance – Check your policy and post code

Home insurance rates can vary for a multitude of reasons, and not surprisingly, with the provider you have taken the policy out with, so make a point of regularly comparing your policy to the rates available at other companies. It is also a good idea to consider your postcode, especially when looking at a new property. As a general rule, insurers are inclined to charge higher rates for those living in areas where crime is higher and flooding is more likely, as well as for those who live in the country's wealthiest areas. These costs can, however, be reduced with the implementation of home security features, including high-quality burglar alarms.

Have a go at DIY

As well as being an extremely popular hobby in the UK, home DIY can prove to be an excellent money-saving activity. Being proficient in DIY can result in a reduction in the need for costly call out charges for those basic household repairs. Local DIY courses can also be a good idea; they can provide you with the additional skills to take care of more complicated household maintenance tasks.

Control your finances

Using money management software, such as the online Money Dashboard application, you can see exactly where your money is being spent and categorise each transaction from all your bank accounts and credit cards. This will help you to stay financially on track and to keep within your available monthly budget.

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All content is for informational purposes only and is the opinion of the author. Nothing on this website should be interpreted as "advice". Money Dashboard Ltd make no representations as to the accuracy, completeness, suitability or validity of any information on this site and will not be liable for any errors or omissions or any damages arising from its display or use.

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