The easiest money saving tip
Considering the year that we’ve just come out of, saving money is certainly something of a hot topic, and there’s no denying that people are going to continue the money saving search well into 2021 and beyond.
You probably already know the most usual ways of cutting back on your expenses:
- Pack a lunch instead of going out for lunch.
- Save petrol and have a Teams/Zoom meeting instead of face to face.
- Cut out nights out.
- Turn your geyser off during the day.
This list really does go on and on, but we’ve got something else up our sleeves for you today and that relates to your INSURANCE. You heard us right, now please hear us out – it could save you a lot of money without the loss of any benefits.
As a starting point, you must look at your home and car insurance every year – without any claims or changes in your situation, you might see your premiums go up hugely (we’ve seen 25% annual increases as ‘normal’). First things first, work out how much your premiums increased – if its more than around 8% get in touch with your short-term insurance agent or the insurance company and complain, they will normally decrease your premium on the spot with no questions asked. If they don’t decrease them for you – get shopping, get quotes, and pick someone new who covers you for the exact same benefits. Either way, you should be saving money here without losing any benefits.
Just because you’ve had the same policy in place for the last 10 years, doesn’t make it the best policy for you. In fact, you should relook at your insurances at least annually as your needs constantly change. Cutting cost shouldn’t mean cutting corners, get some like for like quotes against the current cover you have in place and see what the price comparison is like. Get quotes from either multiple insurers or find an independent financial planner who can quote you on all the various products available. Saving money is awesome, especially when you don’t need to reduce your benefits to realise the savings. Make sure you know exactly what you’re paying for – you don’t want to be surprised in the middle of a crisis.
This is not something I would ask you to reduce, planning and saving for retirement should be near the top of your priorities. As time passes though, the products available change and the pricing structures change too (see this article for some more info). Even updating your retirement products through the same company can reduce the fees you pay which can have a huge effect on your future savings – you could end up 50% better off simply by moving to a newer retirement product with lower fees.