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Money Saving Tips in a Recession |
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Introduction
The recession, which Britain entered, officially, in the final quarter of 2008, has caused consumers to cut spending dramatically. Against a background of falling housing prices, rising unemployment and attempts by the Government to encourage consumer spending - cumulative cuts in the Bank Rate, and a cut in the standard rate of VAT, for 13 months, for example - many consumers have been forced, nevertheless, to reign in their spending, especially on "luxury" items. New cars, holidays and eating out, for example, are now considered unnecessary costs by many consumers, who prefer to pay off their debts instead.
How to Save Money
The Internet is a readily available resource for many consumers, nowadays, and can be a useful tool for saving both time and money. Goods, even everyday goods, sold by Internet retailers tend to be cheaper than those sold by their High Street counterparts, purely because of reduced overheads. Furthermore, many websites now publicise promotional discount codes, or vouchers, which can be redeemed against a range of goods and services. If you shop online via a specialist "cashback" website, you may be able to earn a proportion of the money you spend back, too.
The Internet - or the local newspaper, for that matter - can be a good source of information regarding sales or other deals available, and you may be able to save up to 75% of the cost of everyday purchases such as clothes, electrical goods, etc.. So-called "BOGOF", or "Buy One Get One Free", deals or similar promotions are popular nowadays and can be a useful method of saving money, provided, of course, that you need the goods, in the first place, and in the quantity offered. If you would buy the goods in any case, regardless of the offer, you can probably save money, but try not to be tempted otherwise. Similar comments apply to loyalty cards, as offered by supermarkets, etc.. Customer loyalty becomes more significant during recession, so if a retailer is prepared to offer you discounts, vouchers or other deals, on money that you would spend in any case, it makes sense to take advantage.
Domestically, many consumers stay with the same utility, or home insurance, companies year after year simply because they do not have the time or inclination to change. There are many comparison websites which allow you to compare energy, telephone, or insurance offerings from different providers side-by-side, so finding the cheapest deal is straightforward, and could save you hundreds of pounds over the course of a year. Some websites may also offer an element of cashback for changing provider(s). Furthermore, if you require, say, satellite or cable television, telephone and broadband Internet services, there are a number of companies that offer all three as a package, which may offer a substantial discount compared with purchasing each service separately.
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Last Updated ( Wednesday, 03 March 2010 )
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