Top tips for employees to cut costs and boost savings

WEALTH at work shares some of its top tips for employees wanting to cut their costs and to boost their savings.

1. Do employees know where their money is going?
Employees should check their bank statements and make a list of what they are spending each month. It is helpful to divide these into utility bills (gas, electricity and water), mortgage or rent costs, council tax, supermarket shopping, monthly contracts for TV, broadband and mobiles, insurance, regular subscriptions, and other spending. This will highlight where an individual’s money is going and where savings could be made.

2. Compare utility providers
Employees should consider visiting comparison sites to find out which providers may be the most cost effective for them. For example, utility savings could be approx. £440* a year.

3. There are great discounts on online supermarket shopping
Another way employees could save money is to consider getting their food shopping delivered. Not only can this save money as it can remove the temptation of buying items in store that aren’t actually needed, but there are also great online offers such as £20–£30 off a first order. For example, £70 can be saved on £280 worth of groceries.**

4. Is the latest mobile phone really needed?
Employees could consider a SIM-only deal rather than upgrading to the latest phone if their phone contract is coming to an end. With a contract, individuals are effectively borrowing money for the phone, and repaying this loan through a monthly bill. Also, tariffs should be checked as there are some very competitive deals available.

5. Regular contracts should be reviewed
Are your employees making the most of the subscriptions they have? Could they cancel music and other services that aren’t being utilised? It may be worth calculating how much is spent on these types of contracts and seeing how much of a difference cancelling these may make.

6. Watch out for auto-renewals
Many insurance policies for car, home or holiday, automatically renew each year but employees may not be getting the best deal if they allow this to happen. For example, drivers who auto-renewed paid up to £113 more on the cost of their car insurance cover.*** To get the best deal and to avoid any potential price hikes with auto-renewal, employees should shop around and switch where appropriate.

7. Staff discounts
Are you encouraging your employees to make the most of any staff discounts you are offering? By signing up to a workplace discount scheme, individuals could get discount codes to high street stores or buy reloadable store gift cards, which allows them to buy the credit at a discounted price.

Jonathan Watts-Lay, Director, WEALTH at work, said: “Learning how to manage money is important whether you are in employment, or approaching retirement.  The lessons learnt on how to save money on bills, managing spending and debt and the importance of saving, can save a fortune over a lifetime.”

* – £439.59 was the average annual saving from energy bill switches by area in January 2016.

** Sainsburys £20 off first order (£100 minimum spend), Waitrose £30 off first order (£100 minimum spend), and Ocado £20 of first order (£80 minimum spend).

*** – Research has shown an estimated 23% of drivers (over six million motorists) auto-renewed last time around and paid up to £113 more than they had to on the cost of their cover.