Here, he kicks off with his top 10 money-saving resolutions
Martin Lewis, the award-winning campaigning TV and radio presenter, and best-selling author, is passionate about helping people save money.
1. I resolve to… stop my car chugging so much fuel
With the exception of flogging the motor and walking, the biggest way to cut your fuel bill is to change how you drive. Start by thinking of your car’s accelerator as a money pump. The harder you press it, the more you spend. This is less about speed and more about not accelerating so hard and speeding up gradually.
Then, think of your brake as a money burner – press it, and you burn up the fuel you paid to put in it. Of course, I don’t mean never brake, but decent road positioning lets you slow down gradually to maximise your fuel use. You can save 20 per cent this way – that’s £520 a year for someone who fills up with £50 a week.
2. I resolve to… check and see if I can reclaim £1,000s of PPI
If you’ve had a loan or credit card in the last six years, check whether you’re owed cash. Expensive Payment Protection Insurance (PPI) policies were mis-sold alongside these loans, with lenders lying to customers that it was compulsory. Now the cat’s out of the bag, companies have put over £5 billion aside to pay claims. Full help on how to reclaim for free can be found at MoneySavingExpert.com/ppi
3. I resolve to… prepare for next Christmas now
Buy wrapping paper, cards, decorations and even presents now, while they’re reduced. Plus, Christmas costs a typical family £650, and trying to pay this out of one month’s salary can be tricky. Put aside £50 a month, and you’ll have the money ready to spend.
4. I resolve to… give myself a financial health check
This is easy to do. Just ask yourself, do I spend more than I earn? If yes, it means you’re either using up all your savings or building up debt. To find this out requires a real budget. I don’t mean taking a quick look at one month’s expenditure – that misses out things such as Christmas, summer holidays or buying a new sofa – I mean addressing your finances across a year. You can find a free tool at budgetbrain.com that does this for you.
5. I resolve to… check what I’m entitled to
The benefits and tax credits web stretches further than you think. In some, albeit rare, cases, families with £70,000 income are eligible. Though it’s more usually families with kids and a sub-£40,000 income, those with disabilities, carers, over-60s or those with lower incomes. Use my quick five-minute benefits check-up tool at MoneySavingExpert.com/benefits to find out what you’re entitled to.
6. I resolve to… repay my credit cards in the right order
Many people who’ve got multiple credit cards or other debts just try to spread the cash around. Actually, there’s a strict order you need to follow. Find out which card has the highest interest rate, as that’s the one where the debt grows most quickly. Then focus all your spare cash on clearing that one. Once you’ve repaid it, shift your cash to the next most expensive card and so on.
7. I resolve to… reclaim tax on my work uniform
Employees who have to wear a uniform to work, and who wash, repair or replace it, may be able to reclaim tax of £12 to £56 per year. You can claim back a rebate for up to the past six years – plus the current year. Once registered, it applies in future, too.
The amount you’re able to claim tax relief on depends on your industry. If this is your first time claiming a tax allowance or the amount you paid out was more than £1,000, you’ll need to claim it by post rather than over the phone. See help on the direct.gov.uk tax pages.
8. I resolve to… flog my old mobile
Time to have a rummage around your drawers. If you’ve upgraded your mobile for Christmas or have any old mobiles lying around, you may be able to make some cash by selling them – up to £150 on new handsets. Yet no one buyer is top for all phones, there’s huge variation between handsets. To help the Mobilevaluer.com tool compares all the online mobile recycling sites to find who pays most. If you’ve time, you’re likely to get even more selling it on eBay.
9. I resolve to… save money on gas and electricity
The typical home on a standard tariff in the UK pays £1,350 a year for its gas and electricity, but would pay only £1,050 on an online billed tariff. What’s more, by switching online at moneysavingexpert.com/gaselec you may get cashback deals or even a free crate of wine.
10. I resolve to… save with golden numbers
Would you prefer the cappuccino or a holiday? Sounds ridiculous, but there are three golden numbers, which may change your mind: 365, 250 and 52. If you spend money on something non-essential every day, multiply the price by 365 for its annual cost or 52 for the weekly cost.The missing one is 250 – that’s the ‘every working day’ number. So, a £2 cappuccino bought every working day is £500 a year. I’m not telling you to quit your coffee, just think about whether it’s worth it or would the money be better used elsewhere.
Martin Lewis is creator of MoneySavingExpert.com. Join the 6 million who get his weekly tips emailed at www.moneysavingexpert.com/tips
