Money saving tips from All Things Money

Hi everyone, I’m Ola Majekodunmi, founder of All Things Money. We’re a community that’s passionate about helping people find new ways to budget and make their money stretch further. I created All Things Money to help people begin their financial literacy journey, giving them the tools, resources and advice they need to navigate the world of personal finance.

The last few months haven’t been easy for any of us. We’ve had record levels of inflation and rocketing bills, so it’s completely understandable that we’re all feeling the pinch and looking for financial advice.

I recently hosted a live Q&A with the giffgaff community to better understand which areas of your day-to-day lives have been most impacted by the cost of living crisis, so I could give the most useful and relevant advice to help you navigate these challenging times.

I wanted to share my experience and some of the most common questions asked during our Q&A session, with some tips to help you find new ways to budget and manage your spending.

Review your finances

One of the main points that came out of the giffgaff community discussion was how important it is to take the time to review your finances and get an understanding of your current situation. This means you’ll have a strong basis to start from before you look to cut back on spending or add any money-saving hacks.

During the Q&A, some members of the giffgaff community said they find it impossible to save, but often the problem is simply knowing where to start. Even though assessing your finances can feel like an overwhelming or daunting task, it’s the first step towards managing your money better. Taking a good look at your spending can uncover any unnecessary expenses you could cut out or cut back on.

Setting a budget allows you to work out how much you can afford to save on a monthly or weekly basis. So for instance, if you regularly have £150 left over at the end of the month, this could be a good figure to start with and try to build on as you assess where you can reduce your discretionary or fun spending.

Once you have a good picture of your finances, I would always recommend opening up a separate account to keep your savings away from your current account. This makes it harder to accidentally spend or dip into your savings!

Saving on energy bills

With prices fluctuating and the price cap changes hitting headlines, it was clear after speaking with the community that one of the biggest areas we’re all concerned about is energy bills. The rise in energy prices has meant many households across the UK are really feeling the squeeze and wanting to find new ways to stay warm this winter while also keeping costs down.

One of the first questions I received during the session was from giffgaff member @anna83016, who asked, ‘any tips on how I can save on my energy bills?’

My first piece of advice is – if you can, consume the bulk of your energy usage during off-peak times to help reduce costs. Depending on your energy provider, your electricity costs can actually vary throughout the day. For example, Economy 7 or Economy 10 tariffs are designed to give customers a cheaper electricity rate at night or off-peak, generally between 10 pm and 8 am, while a more expensive rate applies during peak hours.

The energy price cap guarantee is in place until April 2023, but it’s important to make sure you speak to your utility providers if you’re struggling to pay. Some energy providers are offering assistance for those that need it, and there is government support available too.

To further reduce the cost of energy bills, one great little hack is turning your thermostat down just slightly. Did you know that turning it down by just one degree can help you save £80 per year?

Finding creative ways to boost your income

Something we hear people talk about a lot are ‘side hustles’ - ways to make a little extra cash outside of your day-to-day job.

There are so many ways you can make extra cash from your mobile, ranging from surveys and focus groups, to even selling your skills by tutoring or freelancing. Websites like Toluna, Prolific, and UserTesting are great platforms that help you make some extra money by voicing your opinion and taking online surveys and focus groups.

You can even make some extra cash by joining a company’s referral programme. For example, giffgaff’s super recruiters can earn up to £22 for every person they recruit to join the network. Also as giffgaff members, you can all earn Payback by being part of the community and helping other members out with queries on the forum or by taking part in surveys. The Payback you earn can be turned into cash or giffgaff credit, and you can even donate the money to charity if you want to.

First-time buyers

Many of us dream of the day we can get on the property ladder, but with the cost of living at an all-time high, that day feels far from reality for a lot of us.

This was one of the main concerns that shone through during our session, with giffgaff member @liza34 asking for advice for a first-time buyer.

Like most saving tips, this boils down to budgeting and ensuring you know how much you could save per month. Opening a separate savings account will allow you to keep track of your savings and see exactly where you stand when it comes to your long-term savings goals.

Not only this, but utilising the government schemes and support in place to help first-time buyers is so key. For example, the Lifetime ISA is a government scheme which can help you save up to £4,000 every tax year. For every £1 deposited into your Lifetime ISA, the government will top it up by £25 - and this money will go towards your first property worth up to £450,000.

Thank you to everyone who joined our conversation!

Taking stock and getting a really good understanding of our finances is so important, now more than ever. I hope these tips will come in handy when it comes to budgeting and finding new ways to cut costs and boost your income.

On behalf of us and our members, a huge thanks to Ola for running this top-notch Q&A with the giffgaff community. If we’ve left you wanting more, you can keep up to date with her latest money-saving advice on her blog and Instagram.

Got some money-saving tips of your own? Continue the conversation on the giffgaff community forum.