Make your budget go further

5:10pm Saturday 16th August 2008

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RESIDENTS in Trafford are feeling the pinch, in common with people throughout the rest of the country, but you can make your money go further with a little inspiration.

Says Andrew Hagger at financial data specialist Moneynet.co.uk: “Many consumers don’t use a basic monthly budget to help manage their finances, and those who do probably see it as an annual task.

“With incomes ravaged by increasing fuel, food, energy and borrowing costs, it’s time to take a long, hard look at our financial situation to see how we can get through the rest of 2008 in the most cost-effective way.”

Here’s his checklist to boost your spending power *If mortgage repayments are a problem, see if your lender allows a temporary switch to interest-only terms. Anyone with a £140,000 mortgage at 6% who does this for three months frees up £200 a month; on a £220,000 loan, the saving is £320 per month.

*Go food shopping once a week and plan your meals in advance. Only buy what you need, and save money by avoiding regular trips to the corner shop.

*Before making any big purchases, check online price comparison sites like www.pricerunner.co.uk or www.kelkoo.co.uk to be sure you are paying the going rate.

*Buy petrol and food on a credit card with a cashback - the American Express platinum moneyback credit card pays 5% cashback for the first three months (maximum £200). If food and petrol cost £500 per month, you could recoup £25 per month for three months.

*Work out annual costs for car tax, car service and MOT and Christmas and birthday expenses. Divide it by 12 and pay this amount into a savings account each month. This avoids paying a large bill from one month’s wages, and earns interest in the meantime.

*If you haven’t reviewed your gas and electricity supplier lately, check to see if any dual fuel or online tariffs available would be cheaper than standard offers. It might be worth checking out the British Gas ‘click energy 5’ dual fuel tariff to see if it can cut bills, on www.britishgas.co.uk/dual-fuel-offers.

*Earn extra money by filing out online surveys at sites like www.valuedopinions.com.

*Don’t leave too much money in a savings account earning minimal levels of interest. Budget correctly and then switch excess cash to a savings account paying more than the standard 0.1% on credit in many high street current accounts.

*Review home and contents insurance - not just by looking for cheaper cover, but also by reviewing the quality of the cover you have. There may be scope to save money from cheaper premiums affording the same level of protection.

Finally, make the most of a sunny weekend take unwanted CDs, DVDs and children’s clothes to a car boot sale. Three hours of hard work and willingness to make an early start to reserve a good pitch, can earn £100 cash, tax-free.