How to Save Money

HOW TO SAVE

MONEY

Richard Benson

S U M M E R S D A L E

Copyright © Summersdale Publishers 1995

All rights reserved.

No part of this book may be reproduced by anymeans, nor transmitted, nor translated into amachine language, without the written permissionof the publisher.

Summersdale Publishers46 West StreetChichesterPO19 1RPEngland

A CIP catalogue record for this book is availablefrom the British Library.

Printed and bound in Great Britain bySelwood Printing Ltd.

ISBN 1 873475 19 5

Illustrations by Sophie Sitwell

Contents

Introduction........................................................5

How To Manage Your Money............................9

Budgeting............................................................11

Shopping.............................................................23

Kitchen................................................................35

Energy Savers.....................................................42

Auctions.............................................................54

Travel.................................................................59

Communication.................................................75

Finance...............................................................79

Investments.........................................................87

Insurance.............................................................90

Security..............................................................95

Entertainment and Leisure................................101

The Wedding....................................................109

Keeping The Children Amused........................115

Entitlements......................................................122

Houses...............................................................132

Running Your Own Business...........................148

4 How To Save Money

How To Save Money 5

Introduction

This book is designed to help you in many ways.While its main objective is to save you money,precisely how much you wish to save depends onyou. There are ways to save a little and other waysto make greater savings. Some require very little inthe way of effort, others are not possible without acertain degree of sacrifice or compromise in yourlife.

Most of us do not earn as much as we think weneed, and are constantly left wishing for that littlebit extra. This book will not necessarily make youmoney, which is a different area altogether, but itwill help you to utilise what money you do havemore efficiently. The book contains valuable advicesuch as how to make more efficient use of yourcentral heating system, and useful tips such as thesecrets of getting a bargain, plus general hints onother areas of life that can save you money.

You may be familiar with many of the ideasmentioned in this book, but do you practice them?Saving money is a little like a régime or diet, it hasto be followed strictly for any effect to be noticed.It will take a little while of following this book’sadvice before you reap the rewards, but it will beworth it in the end when you find you have moremoney (or fewer debts) than usual.

6 How To Save Money

Not only will this book save you money, it shouldsave time. As the old expression goes, ‘time ismoney’. For some people this is quite literally true.Self employed people who charge for their serviceson an hourly basis can only earn as much as thereare working hours in a week. If parts of their lifetake up too much time, it can mean less timeavailable for work and hence less money. Savingtime on household chores etc. can mean moremoney in the pocket at the end of the day.

One important aspect of this book is that many ofthe ideas and tips will not just be benefiting you,your actions could be helping to protect theenvironment, and conserving natural resources,particularly if you recycle waste products.

How To Save Money 7

You might not be aware that every time we useelectricity or gas in the home or drive a car we areprobably having a detrimental effect on the planet.When fossil fuels are burnt they produce a by-product, carbon dioxide (CO2). This is released intothe atmosphere and is one of the causes of globalwarming, an increasingly serious and threateningphenomenon. Efforts are being made to reduce theemissions of harmful gases: many governments inthe world have introduced strict policies to helpreduce levels but individuals too can make acontribution. Roughly one quarter of the CO2produced in this country comes from domesticusage. Much electricity is produced by powerstations from the burning of fossil fuels, so everytime a light or a television is switched on the needfor fuel is increased. Cutting energy usage in thehome will make an important contribution toreducing global warming and other negative aspectsof high energy use, and don’t forget that if you aresaving energy you will be also saving money!

However much media attention is given to theplight of the environment, are we really doingenough? If we compare our efforts with those ofother countries such as Norway, Sweden orGermany, we appear shamefaced. There arehundreds of ways to make a contribution to thisplanet, but it seems that other countries are makingfaster progress towards a more energy conscioussociety than we are. One last message in this lecture:this is your planet, if everyone took the attitude,

8 How To Save Money

‘But it’s not my problem’, then we would beheading for disaster. Please give it some thought.

This book is not intended to turn us into Scroogesor to encourage us to live miserable existences.Hopefully it will have the opposite effect, makinga positive contribution to your life, increasing yourspending power, employing your resources moreeffectively so that the necessities of life are paid forwith less money, leaving more funds free for theluxuries. Think about it: if you save a few poundsa week you could end up with enough saved at theend of the year to treat yourself to an extra holiday.

How To Save Money 9

How To Manage Your Money

We have less and less real contact with our moneythese days. Salaries are normally paid directly intobank accounts because although there is nothingnicer than being handed a pile of cash it is moresensible and secure to have it paid in this way. Thisremoves the temptation not to pay all of the moneyinto the bank but to ‘blow it all’ straight away,and makes it easier to keep track of your finances.

The banks now offer services such as:

• Direct debit• Standing orders• Budget accounts.

These enable many expenses such as gas orelectricity bills to be paid directly from youraccount by the bank. Subscriptions to journals orclubs can also be debited directly, without the needfor you to write regular cheques. The advantagesof these types of services are that they save youtime, and take out the worry of remembering topay certain bills. This in itself will save you moneyif you would otherwise be financially penalised foran overdue bill that had slipped your mind.

Paying with cash is becoming a thing of the past:even cheques are now being superseded by debitand credit cards in all but the smallest transactions.The general effect of ‘paying with plastic’ is toincrease demand. Plastic does not feel like money,

10 How To Save Money

and the time delay between paying by credit cardand actually receiving the bill means that manypeople spend more than they can really affordsimply because it is so easy to do so. When the billarrives, they are only asked to pay a minimum of,usually, 5% of the balance. This does not feel‘painful’, and encourages full use of available credit.

Unfortunately, credit cards are an expensive wayof borrowing. A prearranged overdraft at a bank isa cheaper way of borrowing than a balance on acredit card, and if your card balance becomesuncomfortably high you could save money ininterest payments by paying off the card balanceeither with money from an overdraft or from aloan. If credit cards are used with restraint,however, they can save you money. If your bankaccount is not in credit and you wish to purchasesomething, buying it with a credit card gives youat least a month’s interest free credit. If you thenpay the balance in full at the end of this interestfree period, it means you have avoided paying alittle extra interest on your overdraft during thisperiod.

Never borrow more thanyou can comfortably repay

How To Save Money 11

Budgeting

In an ideal world it would be nice not to have toworry about money. However, it appears thatregardless of how much we earn we spend right upto our limit and often over it. No matter how manypossessions we own or how many holidays we takewe always seem to want more. If you are not likethis then you are lucky! We may not all be greedy,but it is human nature to want more. So thesolution is to be more careful with our money.

If you have an idea of exactly how you spend yourincome it will be easier to make adjustments to yourexpenditure. But as we seem to have little actualcontact with our money it is often harder tocontrol. That is the advantage of using cash as aprimary method of payment: you can actually feeland see the money leaving you. This is alwayspainful and you might be less inclined to fritter itaway than if you were paying with a credit card.The best advice if you cannot control your spendingis to take a pair of scissors and cut up your cardsand stick to paying with cash.


Your current situationIt is a good idea to begin your efforts towards savingmoney with a financial overhaul. The first stage isto work out what money you have coming in, ifyou have a partner do a joint calculation. Possiblesources of income are, for example:

• Wages• Pension• Investment Income• Income Support• Sickness Benefit• Invalidity Benefit• Housing Benefit

The next stage is to try and work out what yourexpenses are for an average month. If you writedown all your various expenses it is then easier tobegin to think about cutting down in certain areas.If you have no record of what you have beenspending it is much harder to do this. The best thingis to keep a written record of all expenses, coveringeverything during the next thirty days. Providednothing too exceptional was bought during thisperiod, it will be alright to use this as an averagemonth.

Keep a record of all expenses


Many people are quite content to avoid all possiblethought of how they spend their money becausethey feel guilty at what they have been spendingtheir money on, or because they don’t realise thatby paying attention to where it goes they couldsave a fortune. If you write down and look carefullyat your expenditure then you will be more inclinedto make some sort of effort to make a few cutbacks.It is not always possible to account for every pennybut here is a list of some of the most commonlyincurred expenses:

• FoodAs well as the regular weekly shopping make a note ofhow much is spent on occasional snacks, drinks, sweetsand meals out. This can often be equal to or in excessof the amount spent in the supermarket, and representsan area with huge potential for economising.

• Motoring

• Travel expenses

• Household necessitiesMortgage or rent, council tax, phone bill, televisionlicence, energy bills.

• Other necessitiesCredit repayments, insurance, assurance etc.

• Entertainment

• Holidays

• Newspapers


• Saving

• Sundries

Also include a list of debts, such as money owedon:

• Credit cards• Hire Purchase• Overdrafts• Loans• Mortgages

Any money that is borrowed will be costing youmoney in interest. In some cases, extortionate ratesof interest are charged.

The above list covers a range of expenses. Some ofthem are referred to as fixed costs, such as mortgagerepayments, council tax, hire purchase instalments,insurances etc. These fixed costs are normally paidat fixed times, so you know when to budget forthe expense. The other type of costs is variablecosts, and as their name implies they changeaccording to usage, like heating or electricity.

You should work out how much your fixedexpenses are and set aside an appropriate amountof money for these, then you can work out howmuch you have to spend on the variable expenses,over which you have some control.


It is sensible to keep an accounts book, not just theback of an envelope, as being organised is one ofthe secrets of saving money.

Using past bills write down your expenses for theprevious year, if available, in order to give you anidea of what to budget for this year. This is usefulbecause some expenses are seasonally variable: gasbills, for example, are higher in winter than insummer, so knowing only what the average gas billis may leave you short when the winter bill arrivesas it will be way above average.

Past bills will give you an awareness of roughlywhat to budget for, taking into account inflationand other factors of course. No two years will everbe the same, but an approximate guide is betterthan no guide. The first step towards saving moneywhen looking at the year as a whole is to have areasonable idea of how much the main expenseswill be. When budgeting for this year on the basisof last year, try to add a couple of percentage pointsabove the rate of inflation in order to cover yourselfagainst inevitable price rises.

Balancing the accountsIn theory the amount of money coming in shouldtally with the amount of money going out.However, this is living on the edge as there arealways expenses which you cannot plan for andtherefore savings are needed to cover theseeventualities.


For those who find surviving on their income aconstant battle, remember you are not alone. Infact, getting into debt is not at all uncommon. Ifyou are still in control of your debt, i.e. you cancover the repayments, then this is not so bad. Butfor many the debts spiral and can eventually leadto serious problems such as homes being repossessedor having the bailiffs enter your house and removeyour possessions in order to recover bad debts. Thisis a devastating experience that should be avoidedat all costs. In order to avoid slipping into the ‘debttrap’ keep a watchful eye on your expenditure andnever borrow more than you can affordcomfortably to repay.

If you are struggling to make ends meet there aretwo simple choices:

• Choice 1 is to increase your income.

• Choice 2 is to reduce your expenditure. Making themoney you earn go further will have a similarlybeneficial effect.

It all sounds easy in theory, but in reality whicheverchoice you make will require willpower and effortto achieve. Just remember that although changingyour expenditure habits in order to avoid debt maynot be easy, it is far easier to go out of your way towalk around a hole than to try to climb out of itonce you have fallen in. Debt can be like that, andis better avoided in the first place.


This book’s aim is not really to tell you how toincrease your income, but there are tips here andthere throughout the book which may be of use.Primarily it is concerned with choice number 2,reducing expenditure, but in a way that will not bepainful, complicated or difficult. Anyone can makeeasy savings if they know how.

Paying BillsA brown envelope popping through the letter boxis rarely good news. In fact the majority of postseems to be either bills or junk mail, and the billscan cause a real headache if not downright despair.But if you are organised you will find that it is easierto make the payments, and paying on time willavoid penalties and save money. Most of the utilitycompanies do not take kindly to late ornonpayment and their punishment for this sort ofbehaviour is often to cut off the service theyprovide. This not only leaves you veryinconvenienced but it will cost you even moremoney when you have to pay to be reconnected.

Some bills, such as those for electricity and gas, areoften worked out as an estimate. This means thatthe company calculates a new bill using past billsas a guideline to what amount they expect you tohave used.

The first thing to do when you have opened yourbill is to check the estimated figure with the truereading. If the estimate is way off the mark, either


too high or too low then the money they arerequesting will be wrong. Obviously if theirestimate is much higher than the actual reading youwill be paying more than you have to, and I’m sureyou would rather have the use of that moneyyourself. If the estimate is only marginally out,there is no point in having your bill altered, but ifit is a significant amount of money then you cansend the company in question a true reading andthey should send you a revised bill. If the bill theysent you is too low then you are not obliged toinform them, it just means that when they do readthe meter your next bill will be that much larger,so be prepared.

If the bill you receive is higher than you believe itshould be, don’t just accept it as being automaticallycorrect as you could be paying more than youshould. There was a case where a man received aphone bill for a period when he was away, hequeried this with BT, and eventually they foundthat due to some faulty wiring his line and anotherperson’s had been mixed and for years they hadbeen paying each other’s bills.

Always check your billsthoroughly: mistakes can occur


There are thousands of queries every year for mostof the utility companies, so it is certainly not a quickprocedure getting something investigated. Thecompany will often be adamant that there is noproblem. Keep on persevering until they do listen,or contact the official body that governs theirconduct if you have no luck.

One common problem stems from inaccuratemeters. If you believe the bill is higher than itshould be it is usually possible to have the meterchecked. However, there is a drawback to thisapproach: before you think about having this done,bear in mind that if the company checks the meterand they find there are no faults with it then youwill have to pay them. This varies from companyto company, but is around £20 to £30.

Paying the utility companiesMost people are connected to the electricity, waterand gas supplies. Life would be exceedingly difficultwithout them, but these luxuries have to be paidfor. Most of the companies send out quarterly bills,which have to be settled within a certain period.Some companies allow payment to be madethrough a direct debit scheme, which is convenientand can be cheaper if the company offers discountsfor direct debit.

There are also ‘budget plan’ schemes that aredesigned to spread the cost of your bills over theyear, instead of having to pay them in large


amounts. It sounds fine until you begin to thinkabout it: instead of paying quarterly you will paymonthly instalments, and this means that you willbe paying them in advance. It makes better financialsense to save the money yourself and put it in asavings account so that at least you get the intereston your own money before you pay the bill. Theonly advantage of these ‘budget plans’ is that theyare helpful for people who find it hard to save ormanage their finances.

Standing OrderThis is an instruction that you give to your bankto pay a fixed amount from your account on agreeddates.

Direct DebitThis gives an organisation the right to withdrawmoney from your account at agreed times. This isuseful for paying for things such as car insurance.

Cutting Costs

ElectricityIt is possible to make use of cheap electricity.Economy 7 is electricity supplied during off peakhours, but you need to have a special meter fittedand there is a higher standard charge per quarterthan normal tariff electricity, currently about £3extra. How much cheaper the electricity is variesfrom company to company, but it is on average


about 5 pence a unit cheaper during the off peakhours. Beware - some companies charge more forthe normal rate. Economy 7 is most beneficial forhomes with storage heaters that consume a largeamount of electricity during the night.

Water MetersIt is now standard policy for many of the watercompanies to fit water meters so that they cancalculate how much water a household uses andthen charge according to usage. As with any changeof policy it has aroused public concern. Prior tothe water meters the bill was a fixed amountregardless of usage. There was no need to worryabout using a sprinkler on the lawn and you couldhave as many baths as you had hot water. Sadly formany these days are over.

For those who are cautious with their water supply,having a water meter might work out cheaper thanthe old system, but for many having to beeconomical with water usage is a burden. If you donot have a meter there is no compulsion toeconomise on water usage, however if you have ameter there will always be the thought that if youuse less water the bill will be cheaper.

If you have a water meter and you want to cut yourbill here are some tips:

• Take showers, not baths.

• Do not use a sprinkler on the garden.


• Use the washing machine only for full loads.

• Only use the dishwasher once a day.

• Mend dripping taps.

• Recycle water from the house and collect rainwater in rain butts.

•Put a brick in the toilet cistern so that it uses lesswater to flush, or install a toilet with a dual flushsystem.

•Keep drinking water chilled in the fridge insteadof running the tap until it is cold.


Shopping

The temptation to spend money whilst outshopping is hard to resist. The charms of cleveradvertising can lure all but the very strong intobuying those products which at the time might haveseemed like a good idea but when you arrive homeyou begin to wonder why on earth you parted withyour money. There are many cardinal rules thatmust be obeyed before commencing a shoppingtrip, and these are outlined in this chapter.

Always make a list of what you intend to buy. Thiswill save you time trying to remember exactly whatyou came out for. Also, if you don’t make a list, it iseasy to forget an essential item that will result in asecond trip being made. Yet another waste of time andm o n e y .


Resist temptationIf you are a compulsive shopper i.e. you can’t helpbuying things you don’t really need, try to controlthese compulsions. Before you pick anything upthink to yourself ‘do I really need that?’ If you arestill tempted, go away and think about it. Quiteoften you might come back and think, ‘well I didn’treally have any use for that after all’.

Bargain pricesWho can resist a bargain? The shops seem to gofrom one sale to another. With discounts of 30-60% commonly advertised, it all sounds too goodto be true. The allure of sale items is immense andthe satisfaction of getting a ‘bargain’ is rewarding.There is, however, a number of rules to learn beforeyou commence your bargain hunting.

• Set yourself a limit on how much you are goingto spend and don’t go over this limit.

• Check that the goods you wish to purchase arenot damaged or faulty, or you are at least aware ofthe condition of the product. Many sale items areseconds or damaged stock so they might not be asmuch of a bargain as you might think.

• Check whether you can return the product ifyou are not satisfied with it, e.g. if you buy a newjacket but are not sure about the colour, ask themif they will give a refund if you return it.

• Shops are not obliged by law to exchange orrefund goods simply because you later decide that


you don’t like the colour or the style, but manyshops have the decency to go beyond their statutoryduties in the name of customer care. Your statutoryrights ensure that you have the right to a refund ifa good purchased is not fit for its stated purpose,or had been described prior to the sale in amisleading way. A simple change of mind after apurchase does not give you the right to a refund,but many shops care sufficiently for customerrelations to offer refunds voluntarily.

• Check the prices of the same product in otherstores. If you find it at the same price in anotherstore, tell them and they should try to beat thatprice.

• Try for a further reduction in the price, as theyare often open to dropping the price even more ifyou make the effort to ask. This is not so much thecase with the chain stores, but individual shops havemore flexibility.

• Never appear too eager when enquiring about aproduct that you know you want. If they knowthat you are definitely going to buy the productthey know that they will not have to drop the pricefor you. It is better to appear only mildly interested,then say ‘Well, I might be interested if the pricecould be lowered’. They will either laugh at youor come to a compromise that you are more thanhappy with.


• Check that the product you are buying comeswith a guarantee.

• Think carefully if you really need it. Do youhave the room and time to make use of it, or is itgoing to be stuck in the garage in a few months? Ifyou have ever bought a piece of exercise equipment,you will be familiar with such a scenario.

• Don’t lose your judgement.

Bargains are not always what they seem.Everybody likes to pick up a bargain: it makes youfeel good. Many people end up spending the moneythey saved with a bargain on something additional.The second purchase is justified in their eyes becausethey made a saving on the first product. If you dothis you will be no better off financially but youare not spending any more money than you wouldoriginally have done and you have managed to buy‘two for the price of one’.

Make sure your bargain isreally a bargain by checking

the prices elsewherebefore purchasing


Bargains can have their downsides, unfortunately.Many people lose all sense of control in shops wheregoods are reduced, and the cuts in price canencourage people to buy items that they do notneed and on reflection do not really want, but asthere is a substantial saving on the item they feelthey cannot pass up such an offer.

Shopping for Food

Food, glorious food - cream cakes, freshstrawberries, smoked salmon or bangers and mash:whatever your fancy you can’t live without food.The weekly food bill for many people is one of thebiggest outgoings that they incur. Bills of over £100for a family of four are now not uncommon.

It is becoming easier and easier to spend large sumsof money at the supermarket, and this is due tocertain factors in addition to the fact that food priceshave risen steadily. There are many expensiveproducts that would once have been regarded as aluxury which are now commonplace in a shopper’sbasket.

People often now value time more than they domoney, with the inevitable result that conveniencefoods such as prepackaged meals and ready preparedvegetables are bought in vast quantities regardlessof the expense.


Not all shoppers realise that they are paying twiceas much or more for this convenience than theywould pay if they bought the ‘raw materials’ ratherthan the finished product. Do you really want topay someone in a factory to prepare your mealrather than prepare it yourself at a fraction of thecost? If you are keen to save money on a regularbasis prepare to change your shopping habits. Manypeople who get accustomed to convenienceshopping may suddenly find it tough if theyexperience a drop in earnings for any reason.

Try not to spend too muchon convenience foods

Shopping saver tips

Always make a thorough list of all the foodproducts you need before you embark on yourshopping trip. It will help you to save time as youwon’t have to think what you came out for. If youdon’t make a list you might forget an importantitem then you will have to make a return tripwasting further time and money.

Try to resist temptation. Buy what you really needand discard any items that you can live without.


However this does not mean that you have to forgoall gastronomic luxuries: try to regard them as treatsas opposed to necessities.

Always buy vegetables and fruit that are looserather than prepackaged. Although theseprepackaged items come ready washed, how longdoes it really take to wash them? Is it worth payingthe extra? On average they are about 20% moreexpensive. If you work out how much you mightspend just on vegetables it is surprising how muchyou would save.

Look out for special offers in all departments. Thereare often a few lines in each supermarket that areactually sold at a loss, usually changing from weekto week or month to month. If you buy the specialsand adjust your menu accordingly, you will save asmall fortune.

Some stores also offer reductions for buying anumber of the same item eg. buy three get one free.Stock up on these items if they are things that youuse regularly, but if it is an obscure or a luxuryproduct it is probably not worth your while.

It is a good idea to take a calculator when shopping.You can then work out exactly how much you arespending. It is easy to get a shock at the till whenthe total bill comes up, but with a calculator youwill know how much it will be. It also makes it


easier to budget as without a calculator it is hard toknow exactly how much you are spending.

Cut out money-off coupons from magazines andnewspapers. If you look hard enough there areliterally hundreds, not only for food but for a wholerange of products.

If you are a real bargain hunter find out what timeyour local supermarket reduces the prices of itsperishables. Many items such as meat, fish, fruit,vegetables and bread are marked down. If you haveroom in your freezer and you find some realbargains, buy them and stick them in the freezerto use at a later date.

Supermarkets often have a section where they selldamaged stock off cheaply, but it is not advisableto buy dented tins of meat or fish.

Try to avoid going shopping when you are hungry.Shopping on a full stomach means that you are lesstempted by appetising looking food products thatyou would not normally buy. Buying a bar ofchocolate to eat before going into a supermarketcould actually save you money if it stops youbuying excessive quantities of sweet items inside.

Instead of buying ready made meals such as chillicon carne or lasagna which are tempting if you arenot in the mood for cooking, make your own on aday when you are not busy and freeze them for alater date. This is very much cheaper than buyingready made meals, especially if you make them in


bulk. Also, by making your own you will knowexactly what ingredients you have put in the food.

Stick to the supermarket’s own brands of goods,unless an individual manufacturer has goods on aspecial offer that makes them cheaper than anythingelse. There can be a big difference between theprices of branded and non-branded foods: onaverage they are about 20% less. If you bought mostof the essential items such as rice, cereals and breadas non-branded products you would save poundsoff your weekly food bill. Own brand goods areusually just as palatable as the real thing: often theyare manufactured by the same company in the firstplace, being identical products with differentpackaging. Try a few of the products and see if younotice any difference. If you really find one or twounappetising then go back to your old productsfor those, but buy the ones you do like.


Loss leadersSome supermarket chains even sell extra low priceown brand goods at a loss or at a very small profitmargin. Some of them are edible, some arerevolting, but the prices make you feel as if youhave gone back in time ten or fifteen years. Withthings such as bleach or toilet rolls where flavouris not important, sticking to these loss leaders willknock a large chunk off your weekly shopping bill.If you can stomach any of the ‘edible’ bargains,then so much the better. Many people are put offbuying these ultra bargain non-branded productsdue to the belief that they are only for theimpoverished. Does it matter that much when youcould be saving hundreds of pounds a year?

Don’t be put off byplain packaging if

the product is cheap

Discount Food StoresA number of discount food stores are starting toappear in this country. Many are owned by foreignfood chains that have seen a gap in the market. Theycan be described as cheap and cheerful, theydispense with the frills and just stock the essentials,but many of the items have to be bought in bulk.As for cost, they are not always as cheap as theyappear to look. It is worth comparing their prices


with your local supermarket as they are often prettyclose in price and the supermarket may even becheaper. The interiors of these discount food storesare bare and they exude a sense of frugality, butremember that appearances can be deceptive.

The latest import from America, where as we knoweverything occurs in a big way, is warehouseshopping. I still find it hard to understand why theAmericans use large paper sacks with no handlesto carry their shopping, and refer to shoppingtrolleys as karts, funny lot those Americans.Anyway, back to the warehouse shopping, atpresent there is only a couple of such places in thiscountry, but if they prove to be as popular as theones across the water then we can expect manymore over the next few years.

If you have not heard of them, here is a quickresumé. They are big, huge, Gargantuan, they makeyour average Sainsbury’s seem like a local cornershop. They offer a wide range of products, food,electrical goods and clothes, all at discount prices.If it all sounds too good to be true, well, there aredrawbacks. They are not open to the general publicas they are designed for small businesses, and peoplein certain professions. There is also an annual chargemade for using the shopping facility. The lastdrawback is that you have to buy many of the itemsin bulk.


MarketsMost towns and cities still have traditional marketswhere it is possible to buy a variety of goods,ranging from fruit and vegetables, meat, clothes,and tools, all at economical prices. Some marketsstill have livestock sales which are fascinatingspectacles to watch.

Most markets start bright and early in the morningand finish about 3pm. At the end of the day theprices of many items are reduced especially on thefruit and veg stalls, so it is the ideal time to pick upa few bargains.


Kitchen

There are savings to be made in the kitchen both interms of time, money and the environment. Some ofthese points may seem obvious or you might alreadypractice them but there is no harm in reiterating thesesimple savers.

• Don’t overdo it on the washing up liquid. Mostdetergents are concentrated and only need a minuteamount. Don’t squeeze them into oblivion!

• When hand washing either dishes or clothes,always wash from the cleanest to the dirtiest items.This will save both water and detergent.

• Always use a washing up bowl, rather than usingthe sink. This requires less water to fill: inparticular, less hot water, which is expensive. It alsoallows rinsing (in cold water) exceptionally dirtyitems over the side of the bowl if you only have asingle sink unit, before putting them into the bowl.This keeps dirt out of the bowl and means you areless likely to have to change the hot water.

• Do not wash anything under a hot running tapwhen you have the plug out.

• Never boil more water than you require: it iswaste of water and fuel. If you are making a drinkfor one it is more cost effective to boil the water ina saucepan (with the lid on, of course) on a gascooker rather than to use an electric kettle.


• Use a vegetable steamer so it is possible to cookall your vegetables in one pan as opposed to usinga number of pans.

• A pressure cooker is a very efficient method ofcooking and a number of items can be preparedquickly and easily.

• If you have a gas cooker do not let the flameslick around the edge of a saucepan. This is a wasteof fuel and it can ruin your pan. If you have anelectric stove, choose an appropriate size ring if youhave a choice.

• When using the oven, try to make full use of it.Vegetables can be cooked along with the maincourse to avoid using the rings. Once you get thehang of cooking many different things together,you will find it will save you time and reduce theamount you have to wash up. Dishes such ascasseroles are ideal for cooking in an oven and it ishard to overcook a casserole! If the oven is beingused for baking, why not prepare two or three timesthe original amount and freeze the extra if possible.It will save time in preparation and fuel.

• It is possible to turn the oven off 10-15 minutesbefore the dish has finished cooking as the ovenwill retain enough heat to finish the dish off. Thisonly applies to dishes that require a long period ofcooking, i.e. over 1 hour, and always double checkthat the dish is sufficiently cooked.


• Try to keep the lids on pans when you arecooking, unless it specifies in the recipe that youshould keep the lid off.

• The smaller you cut your food up the quicker itwill cook, saving you precious time and money.

• If you know in advance that you will be cookingsomething from the freezer, put the food in thefridge to let it defrost thoroughly before cooking.It will cook faster and use less energy.

AppliancesThere appears to be a never ending array of newkitchen gadgets that are available on the market,many of them imports. As well as the morecommon blenders and food mixers, there aregadgets such as juicers, cappuccino machines, ricecookers, slow cookers . . . the list is endless.

Although the plus sideof this that many ofthem save you time andare fun to use, there isthe added problem ofstoring all these gadgetsand many of themrequire electricity. Onlybuy or use appliancesthat you feel areessential and that youcan afford to operate.


DishwasherSo OK this is one gadget that we all want and wouldfind it hard to do without once we have one, butthere is the temptation to over-use it. Only use thedishwasher once a day, it is much more efficient tostack the dirty plates from the day’s meals andswitch the machine on in the evening. If you aretrying really to tighten those purse strings, youcould even consider doing the dishes manually.(What a suggestion!)

Tumble dryerThis is one invention that is incredibly useful inthis wet country. Having to put the washing outtruly is a chore, especially when it starts rainingten minutes later. So why not just stuff all that wetwashing in the tumble dryer and forget theweather? Well, one reason for not using a tumbledryer is that it is expensive to run. If you do ownone try to use it only when really necessary. If theweather is fine and you have a garden save yourselfsome money and put your clothes out on the line.There are some tumble dryers on the market thatcan sense when the clothes are dry and turnthemselves off automatically. Remember do notoverfill your tumble dryer as it will not dry theclothes as efficiently.

One other consideration that should be noted isthat when clothes are dried in a tumble dryer theydeposit a substantial amount of fluff. This is madeup of the fibres from the clothes, indicating that


during the drying process they do wear out morequickly than if they were dried on a washing line,due to the friction involved. So not only is the tumbledryer an expensive choice in terms of energyconsumption, it also means clothes will need replacingsooner .

Fridges and freezers• Always site your fridge and freezer in the coolestpossible place in your kitchen. If your fridge orfreezer is next to your cooker it will have to workmuch harder to keep the temperature down.

• Remember to place your appliance at least aninch from the wall to allow cool air to circulateand hot air to escape from the back.

• Never leave the doors open to the fridge orfreezer longer than you have to, and avoid placingwarm food in them as it will cause the temperatureto rise and take more energy to lower it again.

• Once in a while check the seals for tears and givethe seals a clean.

• Defrost your fridge and freezer regularly, as theydo not run efficiently if they are iced up.

Running Costs of Kitchen AppliancesWhen purchasing a new kitchen appliance such asa fridge or freezer the main considerations areusually the price along with styling and size. Butdo you ever consider the running costs of the


appliance? This is actually very significant due tothe extensive differences in running costs betweensimilar appliances, so although two similarappliances might vary in price by £20 and mostpeople would choose the cheaper one, you couldfind that the more expensive appliance would be£20 a year cheaper to operate. Now think abouthow long the average kitchen appliance would last,say, ten years. It could then save you £200 over theother appliance which originally seemed the betterbuy. The long term saving could effectively repaythe entire original purchase.

Manufacturers until recently have not been veryforthcoming with information on energy usage,which makes it difficult when considering whatappliance to purchase. All new appliances such asfridges and freezers now have to come withinformation giving details of their energyconsumption, efficiency and noise. Magazines suchas ‘Which’ often print reviews on householdappliances giving information about which of themare the best buys and useful figures regarding howmuch they cost to run.

The difference between the most efficient andinefficient appliances can be between 50% and100%, so you could save a small fortune over thelifetime of the appliance even if it does meanspending a little more at the time of purchase.


Don’t always think justabout the purchase price ofan appliance, consider how

much it will cost to run

Most houses are filled with numerous electricalappliances, and many of these are constantly on‘stand-by’ such as televisions, video recorders, andkettles. These appliances are all drawing power andcan account for over 10% of the average electricitybill. These items should be switched off when notin use, which would also reduce the risk of electricalfire.


Energy Savers

Central HeatingThere are people who still claim that we were betteroff before the advent of central heating. This sortof statement is normally accompanied bycomments such as ‘No one got colds until they hadcentral heating put in’ or ‘In my day we used torub two sticks together to keep warm’. Whateverhappened in history, central heating is nowcommonplace in most homes. Those who want tolive without it and use an outside toilet are welcometo do so.

Having central heating does not mean that yourhome has to be the same as the interior of a sauna.The temperature can be controlled to a climate in


which you feel comfortable. If you want to put onyour swimming costume and pretend that you arein the Caribbean then turn up that thermostat, sityourself down in your deck chair with your feet ina bowl of sand, and sip your favourite cocktail.While this is possible, such mid-winter armchairholidays can cost as much in heating bills as it wouldactually to go there. Central heating is expensiveto run and is one of the most significant areas ofpotential savings.

Central heating systems use a variety of domesticfuels. The most popular choice is gas, followed byelectricity, although oil is still used as are solid fuelssuch as coal or wood. (Nuclear reactors in the homeare not recommended).

Hot tips on cooling your fuel bills

• Have your boiler serviced regularly. This willnot only make it run more efficiently but it willalso be safer. Safety should never be compromisedin the pursuit of saving money.

• Try reducing the temperature by one degree at atime until you begin to feel chilly. It is estimatedthat if you reduce the temperature on your heatingcontrol by one degree all year you will save betweenfive and ten per cent of your annual fuel bill. Thisis a significant saving for the sake of one degree.

• Remember to switch your heating off when youdon’t need it. If you know that you are going out


for the day, then either turn it off or turn it downlow so that it keeps the house from getting coldbut you are not wasting too much money andprecious fuel.

• If your heating system runs on oil or solid fuelmake enquiries about buying a quantity during thesummer months, as you should receive a reductionin price. Offer them cash and you might get aneven bigger reduction.

• Set the timer clock for your central heatingcarefully. If you can make do with the heatingcoming on 10 minutes later and going off 10minutes earlier than normal, the saving will addup to a worthwhile sum of money over a year.

• It is essential that your central heating systemhas a timer and thermostat at the very least. It wouldbe preferable to fit individual thermostats on theradiators. One cause of inefficiency is due to thefact that most houses only have one thermostat andthis controls the output for the whole house, andthis causes a number of problems.

• There are huge savings to be made by having anenergy efficient home, it will also help theenvironment.

• If the thermostat is situated in either a particularlywarm or cool room, the house will be heatedaccording to the temperature in that room. Thiscould mean that your house is either under or overheated. By fitting thermostatic radiator valves


(TRVs) a more accurate and efficient control canbe achieved. It is then possible to set thetemperature for each individual room, becausecertain rooms need to be warmer than others: livingrooms are normally kept at a higher temperaturethan hallways, for instance. If you can set therequired temperature for each room it will not onlysave you money but you will feel more comfortablewith the level of heat.

• So what do they cost? The TRVs cost from about£9 for a mechanical model, and a more sophisticatedelectronic version is available at around £50. Theelectronic version can be programmed to come onwhen required and the temperature is easier toadjust.

• The drawback to TRVs is that although theylook fairly simple, they are rather difficult to fitand it would be necessary to have them fitted by aplumber, unless you are very competent atplumbing yourself. If TRVs are fitted to a standardsized three bedroom house a saving of around £15a year would be made.

The central heating boiler is like the heart of thehuman body, the life source of a house that provideshot water and warmth. The pipes in a house arelike the arteries in the body, but instead of carryingblood, the pipes are carrying hot water, oil or air.To continue with this analogy, the condition ofthe boiler is as vital for a house as is the humanheart for our body. Many old boilers do not work


efficiently, especially if they have not been regularlymaintained, and this is a terrible waste of fuel.

• When your boiler is next due for a service askthe engineer to see how efficient it is. It is nowpossible to buy more energy efficient boilers thanever before: a condensing boiler is the most efficientand although it will cost more than a standardmodel it could save you over a £100 a year on yourheating bill. This is quite a substantial saving and itwill go on saving you money year after year. Newboilers tend to be smaller giving you more room.

• Make use of cheap electricity if your centralheating system is electric. Economy 7 is charged ataround half the price of regular electricity. A specialmeter has to be installed, but is ideal for homesthat use night storage heaters.

• If you use a radiant fire with a reflective metalshield make sure that you polish the shield. If it isdull it will not reflect the heat as efficiently.

• Buy heaters and other winter items such as heavyduty quilts in the summer when they may becheaper.

Energy-Saving LightbulbsIt is now possible to replace ordinary filamentlightbulbs with compact fluorescent lightbulbs.They are ideal for use on lighting appliances thatare used frequently and for long periods, such as in


halls or living rooms. You might think that thecost of using an ordinary filament bulb is minimal,but when you begin to think how many lights theaverage house has and how long they are used for,the cost adds up.

An energy saving bulb uses roughly three quartersof the electricity of a conventional bulb and willlast on average eight times as long. A lightbulb canbe on for about 6 hours a day. Therefore, an energy-saving bulb effectively can have paid for itselfwithin one year. There are other advantages suchas if they are fitted in awkward places, it will causeless inconvenience because they have to be fittedless often. This is particularly good for the elderly:fitting lightbulbs causes numerous accidents eachyear, normally from people falling off chairs.

Energy-saving lightbulbs are widely available, withboth the screw-type and bayonet fittings. They alsocome in a variety of shapes, sizes and ratings.Depending on the shape of the bulb the pattern oflight is affected. The ‘stick’ type gives out lightradially, whilst the ‘flat’ type tends to give out mostof its light above and below. Choose anappropriately shaped bulb according to what typeof lamp it is.

Keeping WarmHaving lived in houses with no heating and no hotwater, I know how unpleasant an experience it can


be. For many, especially those on a low income,heating is a serious drain on the finances. It isessential for the elderly and young children to bewarm, if not they may be vulnerable to illnessesthat could be potentially life threatening. If youare on a low income you may be eligible forfinancial assistance from the government to helpwith your heating bills. The Energy EfficiencyOffice’s Home Energy Efficiency Scheme (HEES)provides grants to people who are over the age of60 or on a low income. At present £198.70 is themaximum allowed for loft insulation and £128.50for draught proofing. There are grants and schemesthat are available, but some people are unaware ofthe help to which they are entitled, or they are tooproud to ask for it.

If you are about to have your electricity or gas cutoff because you are having trouble finding themoney, try to contact them before they doanything. They can be fairly understandingproviding that you inform them of your situation.If they know you are having difficulty paying theymay give you an extended period to pay them off.If you do nothing it is likely they will just cut youoff.

Many companies insist that prepayment meters arefitted if you have had trouble in the past in payingyour bill. At least with a meter it is impossible tospend more than you use. One word of warning: ifyou are going away make sure that the meter has


enough credits to last the time you are away. I knowpeople who have lost the contents of their freezerbecause the electricity ran out while they wereabsent.

It is all very well turning on the heat, but if you arenot careful all that warmth will disappear quiteliterally into thin air. Before the start of the nextwinter think over how you could cut down yourheating bills; what measures you could take; howmuch they would cost; and whether they wouldbe cost effective. Many of these money and energysaving ideas can be instigated with a minimum offuss and expense, many just require a little thought!

Top tips on preventing heat loss:

• Place tin foil behind radiators so that the heat isreflected away from the wall and into the room. Alot of heat is lost as it transfers directly from theradiator to the outside wall. It is possible topurchase special foil from DIY stores but ordinarykitchen foil will do. It could save at least £5 to £10per year on your heating bill.

• Loft insulation is essential. If your loft is alreadyinsulated but was done several years ago you mightfind that you can now buy even better insulatingmaterial. The insulating material should be at least150mm thick, and can be fitted quite easily by aperson handy at DIY. It should cost around £160for the materials. If it is fitted by a professional it


should cost around £120 plus the cost of thematerials. The investment could be recouped in acouple of years by the amount of fuel saved if youfit it yourself, a little longer if you pay for someoneelse to do it. Don’t forget that you will carry onmaking savings year after year.

• Stop draughts. Some houses, especially the olderones, suffer terribly from draughts, and yet draughtsare one of the cheapest problems to rectify andsavings of around £40 a year can be easily made. Asmuch as 40% of heat is lost from a house throughwindows, floors and other gaps. Stop draughtscoming through doors by fitting draft excluders,and around the bottom of doors place extra thickdraught excluders. If your house is particularlydraughty fit door curtains over front and backdoors and even the letterbox. It is also importantto fill in gaps between skirting boards andfloorboards: a variety of materials can be useddepending on the size of the gap, e.g. newspaper,beading or wood filler. Older style windows oftenlet in draughts around the frames, so line them withplenty of draught excluder.

• Double glazing can help substantially to keepthe heat within, and require less maintenance thanwooden framed windows. It also cuts down externalnoise which is beneficial if you live close to a busyroad.

• No doubt you are constantly being bombardedwith calls from pushy double glazing salesman with


tempting brochures, but think very carefully beforeyou commit yourself. Fitting double glazing to aaverage sized family house costs over £5000. If youare only fitting double glazing because you wantto save money you should bear in mind that itwould take a whole lifetime to recover theinstallation costs from the savings on your fuel bill.

• If your windows need replacing anyway then itmakes financial sense to opt for double glazing. Itis possible to recoup the additional costs incurred,if not the entire cost.

• If you can’t afford to fit double glazing then acheaper alternative is secondary glazing. This costsaround £300-400, can be made from plastic or glass,is easier to fit, and would save about £35-40 a year.

• If it is still too expensive to upgrade all thewindows in this way, just fit secondary glazing ina couple of rooms, the ones you use the most.Alternatively, produce your own secondary glazingusing cling film. Special wide film can be boughtfrom hardware stores so that a window can becovered with one piece. Attach the cling film tothe window frame with double sided tape, then heatwith a hair dryer to stretch it tight and removewrinkles. The result may not look stylish, but itprovides an extra barrier between the cold outsideair and the warm air indoors.

• Pull curtains across as soon as it is dusk.Remember: don’t just close the curtains in the


rooms you are in, close them too in all the roomsyou are not using in order to minimise draughtsand the cooling effect of cold window panes onwarm air. However, when the sun is shining don’tforget that it provides an excellent source of heat,even on very cold days, and if you have aparticularly sunny room make sure you leave thedoors leading to it open so that the heat can filterthrough to the rest of the house.

• The floors is another area that is susceptible toheat loss. Use rugs or preferably carpets as much aspossible and the thicker the underlay the better.

• Lag the hot water tank with its own jacket. If italready has one but it is thin then replace it or evenbetter put the new one on top of the old one. Thejacket should be at least 80mm thick and conformto the British Standard 5615.

• Eat plenty of warming food. Winter is the idealtime for wholesome stews, porridge etc.

• Wear extra layers of clothes. It is better to wearseveral thin layers than one thick one.

• Fit extra thick curtain linings, or purchase specialthermal lining.

• If you have a loft make sure that you keep thetrap door to the loft closed. If it is left open in thewinter the warm air from your heating will risestraight up and through the roof. Don’t forget toinsulate the back of the trap door.


• Board up old fire places that are not in use.

• Make efficient use of your central heating. Themost effective method of control is to use aprogrammer, which allows accurate control overhot water and heating. Most simple programmerscan only control whether the system is on or off,but there may be times when you just want hotwater or just heating so it is worth investing in aprogrammer that gives this type of control.

• A shelf above a radiator can help deflect the warmair to rise outwards instead of straight up wherethe heat will be quickly lost. It could save youbetween £5 and £10 a year.

Turning down yourthermostat by 1 degree for

the whole year couldsave up to 10% on your

heating bill


Auctions

Going, going, gone. Yet another bargain goes underthe hammer. When the word ‘auction’ is usuallymentioned people tend to make associations withfine antiques or cars and believe they are normallyonly frequented by people ‘in the trade’. If you areof this belief think again: auctions are for everyone.

There is normally at least one auction house in eachmajor town or city. Auction houses are used as aquick and convenient means of selling goods. Someauction houses specialise in a particular area ofgoods, eg cars, antiques, or even wine. The mostcommon type has a mixture of goods, usually aselection of household effects ranging from washingmachines, sofas, tables, to more diverse items suchas stuffed animals, old cricket bats and top hats.The nice thing about an auction is the diversity ofthe items for sale. It is definitely the place to findunusual things.

As a rule, auction houses are regularly used bytrades people. They are where many antique dealersand car dealers get their stock. The presence ofdealers at auctions actually keeps the prices lowbecause they have to put a margin on any goodsthey buy and sell to the general public so they canmake a profit. Auction prices only get high whencollectors are present. They are unconcerned withresale values and want an item at any price. Most


people, though, stop bidding if the price gets closeto the normal market value. If you are smart thenyou will go along to the auctions and get yourself abargain.

Auctions will normally be advertised in local papersa few weeks before the sale and the goods can be


viewed prior to the sale. Catalogues of all the itemsin the sale are normally available for a small fee,and some auction houses only admit people if theyhave bought a catalogue.

The next stage is to read the catalogue. If there isanything of interest go and check the condition ofthe item. If you are wondering how much it isroughly worth ask for an estimate, as this will givea good idea of how much the auctioneers expect itto go for. This is only a guideline, on occasionswhen someone is very keen to have a certain objectthey might bid well over the estimated price. Thegolden rule of buying at an auction is always to setyourself a limit and don’t go over it. It is very easyto get carried away and come away with things thatperhaps you did not really want.

Occasionally you will find that there are certainlots for which no one will bid, so if you are theonly person bidding you can often get a real bargain.Usually the best time for bargains is at the end ofthe auction when there tends to be fewer people tocompete with, so prices are generally lower.

Remember that when you buy from an auctionthere is normally a commission fee of 10% and oncertain items you will have to pay VAT.

When you make a bid for an item (called a lot),you are offering a stated sum for the lot. If anyoneoffers a higher sum, your offer is no longer valid.


But if the auctioneer accepts your offer by banginghis hammer, you have entered a legally bindingcontract to purchase the lot, and you can’t changeyour mind at the end of the sale.

Perhaps the most risky auctions are those dealingin cars. You have a very short period of time todecide if you want to buy a particular car and youdon’t get a test drive. If you have little knowledgeof cars go with someone who has. You might endup driving home in what you think is a bargain,but is what they in the trade call a real lemon.

At some auctions they give information about thecar. This can tell you:

• Where it has come from, i.e. was it a privatelyowned or a company car?

• If it has a service history.

• The condition of the engine, gearbox, steering,etc.

Such information is normally only given on moreexpensive cars. At the cheaper end of the marketthey usually have no history, no MOT and quiteoften they don’t even start. It is amusing to watchan auctioneer trying to sell a car that is being pushedpast his nose because it won’t start. Another thingto look out for is whether you have any rightsshould the car turn out to be stolen or have anoutstanding hire purchase agreement on it. Somepeople end up losing their car and their money


when they find that the car they bought was infact stolen. Even though you might have boughtthe car ‘in good faith’ you have no legal standingand the car must be returned. At some auctionhouses you pay a fixed fee of around £20 to coveryou against any such problem.

Buying a houseThe biggest one off purchase that most people makein their life is when they buy a house. If you arefeeling really brave why not buy a house from anauction? At present, due to the number ofrepossessions that are still occurring, there is anincreasing number of homes coming up at auction.If you are bidding for a house, it is imperative thatyou have seen the house, seen a surveyors reportand are 100% sure that you want to live there. Thisis not the same as buying a second hand sofa: youhave been warned!

Look out for auctions of goods from the Police,British Rail, and the Post Office as they all holdauctions of lost property that has remainedunclaimed after a certain period.

Never get carried away at an auctionby bidding for more than you really

will be happy paying and don’t forgetthat in addition you have to pay

commission and VAT on some goods


TravelEver since passing my driving test at the age of 18,the once cherished bicycle that provided years ofvirtually free transport was destined for the garageand has hardly moved in years. (It also kept me fit. . . that alas has also gone by the wayside). ‘Sowhat?’ you might be asking. Well, if you aredetermined to save money, an appraisal of yourtravel methods must be undertaken.

Here are some tips:

• Keep your car regularly serviced: it will be moreeconomical.

• Enrolling in a evening class in car maintenancecould save you hundreds of pounds every year ifyou do your own servicing.

• Replace worn out parts with parts from a carscrap yard or buy reconditioned parts. The onlyrule is never use second-hand parts where it mightjeopardise the safety of you and your car.

• If you travel by train to work make sure thatyou purchase a travel card.

• Travel by train is cheaper at certain times. Tryto organise your journey so that you travel duringthe cheapest period.

• Coach travel is normally cheaper than rail.


• If you are travelling by car, plan your route toprevent losing your way, incurring unnecessary fuelcosts.

• Listen to travel information to avoid heavycongestion areas.

Car SharingAs the country’s roads get increasingly congestedand pollution causes irreversible damage to the

environment we mustbegin to look at moreways of reducingtraffic. One option iscar sharing, whichinvolves givingneighbours lifts towork. The petrol costscan be shared, savingyou and your fellowpassengers money, andit lowers the number ofcars on the road.

Car sharing does nothave to be solely for work. It can work efficientlyfor taking children to school or to clubs, shoppingtrips etc.

Buying a new carI still find it unbelievable that so many people buynew cars. I can see the appeal of going along to a


car showroom and picking out the car you wantwith the all the options that you think arenecessary, having the pleasure of it being truly yourcar, and enjoying that new car smell that permeatesfrom the interior. But have you considered howmuch a new car is actually going to cost you? Youwill obviously be aware of the purchase price ofthe car, but what about factors such as depreciationand ease of resale?

It is not uncommon for people on a modest incometo borrow over £10,000 for a new car. Not only isborrowing costly, but that first year of owning anew car is incredibly expensive due to depreciation.Nearly all cars are liable to depreciation; only afew cars, normally classics, are able to escape thiscostly condition (many classics actually appreciatein value).

The depreciation rate for cars varies from make tomake and even from model to model. Certainmodels such as Mercedes are renowned for theirhigh resale value, but there are others whose valuedrops at alarming rates. The average price of afamily saloon car is currently around £11,000 andin the first year you would lose around 35% of itsvalue and in the second year 17%. The level thenslows down to around 12% per year after that.

So in that first year you would lose roughly £3850,which works out at £320 a month. If you are tryingto save money never buy a new car. The price you


pay for being its first owner and choosing the colouryou want is the equivalent to a luxury holiday oranother car.

If you still insist on buying a new car here are a fewtips that could save you money:

• Always negotiate on the price. As a rule youshould be able to get at least 10% knocked off.Putting a little effort into haggling could save youthousands, but many people are embarrassed tonegotiate a price and therefore pay heavily for aquiet life. Once you get the hang of it you will findit enjoyable and one of the best ways to save money.

Don’t spend too much on optional extras. Thesedays cars come pretty well equipped, and any extrayou pay for will be worth a fraction of its true valuewhen it comes to selling the car.

Before buying a new carthink about how much itwill depreciate in its firstyear and what else you

could do with that money

• Avoid choosing a peculiar colour. If ease of resaleis an important aspect of buying a new car,remember that some colours are easier to sell thanothers. Red cars are the most popular, and as a result


will be worth fractionally more than similar modelsin other colours when it comes to selling them.Exotic colour schemes may appeal to you, but itcould be hard finding someone with similar colourtastes when you want to sell.

• Before you buy a new car find out how well itholds its value. You can check this by purchasing aguide to second hand car prices. Check to see howmuch the value of the car you are after fell on thebasis of last year’s model. The figures normallywork on the car covering the average mileage for ayear, which is around 12,000. If you drive fewermiles then your car will not depreciate so quickly,and vice versa. Certain cars hold their value welland others seem to lose their value at an alarmingrate. So when buying a car don’t just think aboutits performance and breathtaking lines, think abouthow much it is really going to cost you.

Buying a second-hand carThe second hand car scene often receivesunfavourable press. Stories frequently appear in thepapers about unfortunate people who have boughta car second hand and then later found that it isactually two halves of separate cars welded together.Although caution must be used in buying a secondhand car not all of the dealers are like the televisioncharacter Arthur Daley. Ask around forrecommendations, as there are always well


respected businesses and individual dealers in thetrade.

As with new cars, the price quoted by the salesmanwould normally be well in excess of his minimumprofit margin. He will try this ridiculous price inthe hope that you might be sufficiently gullible topay it: don’t make his day . . . haggle. If you areunsure of the average price for that particularmodel, use one of the various guides that areavailable from newsagents giving a comprehensivelist of new and used car prices for nearly all makesand models.

Insurance GroupAs insurance premiums seem to be increasing everyyear, make sure that you know what insurancegroup the car you intend to buy is classified under.The higher the group the more it is going to cost.A car’s insurance rating is determined by the sizeof the engine, performance, cost of repairs etc.

One important point is that if you purchase a carthat has been modified in any way it is vital todeclare it to your insurers. Even if you are unawareof a modification you might find that you are notcovered in the event of a claim if the insurancecompany discovers a relevant modification uponinvestigating the claim. There have been cases ofpeople being refused payouts from their insurerseven for failing to tell them that they had added‘go faster stripes’. The reason is that modifications


such as alloy wheels or spoilers make cars look‘better’ than the basic model, and therefore moredesirable to thieves or joyriders. This means thatthey are at a higher risk of being stolen than a basicmodel, and an insurance company needs to knowthese facts before deciding what level of premiumto charge. If the company is not informed of allthe facts at the time the insurance is arranged, thecontract is invalid. A claim arising from an accidentrather than theft from a vehicle which issubsequently discovered to be a higher theft riskdue to a modification but not to have been a higheraccident risk will be invalid. Even though themodification was not a cause of the accident it willnevertheless invalidate the insurance.

Shop around for insurance quotes because pricescan vary by hundreds of pounds. Don’t just blindlyrenew your policy each year. Just before yourpolicy is to be renewed get some other quotes, sothat when you are sent your renewal quote youcan compare it. Your own insurance company maythen try to match it, rather than lose your custom.

An alternative to buying from a dealer is to buyfrom a private vendor. Cars are always advertisedin the local paper or on noticeboards. As withbuying any car there are certain things to look outfor. One of the rules of buying a secondhand car isalways to stick to your principles, don’t be swayedinto buying something that you are not utterlyconvinced you want.


What to look for when buying a second handcar:

The Exterior• Look for any obvious signs that the car has beeninvolved in an accident.

• Check the alignment of the panels, see that thedoors and bonnet fit flush.

• See if there are signs of major repair work,welding, or replacement panels. A replacementpanel will often be a slightly different shade incolour as the old paint work will have faded.

• Look for indications of minor repairs in thebodywork i.e. where it has been filled and thenresprayed. Unless the job is well done these areashave a habit of recurring. I once had a Morris Minorthat was more filler than metal and requiredextensive patching at least once a year!

• Check the condition of the exhaust system, andthe wear on the tyres.

• Check that the tyres have worn evenly. If one isworn more than another the tracking is probablyout.

• Check that there are no leaks of fluid frombrakes, shock absorbers, petrol tank, and under theengine etc.

• Check for rust in important areas such as by thesuspension mounts. If there is a lot of rust it mayrequire welding to pass its next MOT.


Not all car salesmen wearing thicksheepskin coats are unscrupulous, just

don’t be persuaded into buying anythingthat you don’t really want. If you

go out looking for a small runaboutdon’t come home with a Chieftain tank!

• Check the sills for indications of rust as these arevital to the structural integrity of the vehicle.

The EngineThe engine is an expensive component, and if it needsreplacing on an old car it could cost more than the caris worth. So what should you look for? This advice isonly designed to give you a few approximate guide-lines: if you really don’t have any knowledge of carstake someone with you who does.

• Before starting the engine, open the bonnet andcheck the condition of the oil. It is better if it istranslucent rather than black or sludgy.

• Ensure that there is sufficient water in theradiator, and check that it is not rust-coloured.

• After starting the engine listen for any rattles orshakes. It should tick over well, and not splutter orjudder when revved.

• Look out for excessive or bluish smoke fromthe exhaust. This is always a bad sign and usuallyindicates that the piston rings are worn (they will


not pass the MOT in that condition and areexpensive to replace).

Steering• Check for excessive play in the steering. If thereis a delay between turning the steering wheel andthe wheel moving there could be a problem withthe steering column.

Gearbox• Check that all the gears operate smoothly anddo not jump out of gear when accelerating ordecelerating sharply.

Brakes• Check for wear of the brake shoes if they arevisible. If you take the car for a test drive test thebrakes and make sure that they do not pull the carexcessively to one side.

Interior• Check for rips in the cloth, and cigarette burnsin the seats. A common problem is a worn driver’sseat.

ClockingThis is an expression that refers to the illegal practiceof winding back the odometer to make the car appearas if it has done fewer miles than it really has. This isunfortunately a relatively common problem. To helpcheck that the mileage is correct, look at the servicehistory: the mileage should have been recorded onservice records and the MOT certificate.


• Look for heavy wear on the pedals and carpeton the driver’s side. Genuine low mileage cars donot normally have threadbare carpets where thedriver’s heel has rubbed it, but if you are unsure itwould be better to find another car.

• Always try to buy a car that has at least 6 monthsMOT.

• Don’t buy a car with very high mileage unless itis very good value.

• Be wary if there is no service history. It is betterto pay a little extra for a car that has acomprehensive service history than to buy acheaper car with only a few or no details.

Saving On Car Bills

Petrol or diesel?The vast majority of cars in Britain are petrol based.However in Belgium diesel cars are as easy to findas somnolent octogenarians in the House of Lords.Europe is full of diesel cars, so why are we in Britainthe odd ones out? The cost of diesel fuel might be afactor. In most of Europe diesel is far cheaper thanpetrol. In the UK whilst being cheaper than FourStar it is usually priced as the same as unleadedpetrol.

Diesel cars are noisier than petrol ones, but theyare a great deal quieter than they used to be. Diesel


emissions are smokier than petrol, but containfewer harmful elements.

The bottom line is that they are generally cheaperto run. On average a diesel uses 25% less fuel thanthe equivalent petrol model, and diesel is stillcheaper than most types of petrol.

Servicing and running costs can be lower for dieselvehicles, and the lack of spark plugs makes themmore reliable for starting in cold or dampconditions. The only drawback is that they aremore expensive to purchase either new orsecondhand.

Running Your Car For Less

Indulgence in motoring is not without its costs, bothfinancial and environmental. There are, however,many ways to reduce your motoring costs and decreasethe detrimental effects your car has upon theenvironment. Here are a few tips:

• Buy your fuel from a supermarket, where theprices are normally lower than roadside fillingstations. Remember to fill up before you go on amotorway: their prices are extortionate.

• Treat your car and your passengers delicately.Accelerate gently and don’t pretend that you areabout to start a Grand Prix race at each set of trafficlights. Gentle acceleration, braking and cornering


will reduce fuel consumption and extend the lifeof tyres, brakes and engine components.

• Make sure that you use the appropriate gear.Keeping the revs low by using the highestappropriate gear reduces fuel consumption. Nevercruise in fourth gear if you have five gears.

• Remember to push the choke back in as soon asthe engine has warmed up. Running the vehiclewith the choke out when the engine is at fullrunning temperature not only uses excess fuel butcan cause engine problems.

• Don’t carry heavy items in the car unless youneed them. The heavier the car the more fuel willbe needed to overcome its inertia when accelerating.

• If you are stuck in a traffic jam or at a railwaycrossing for longer than a couple of minutes, turnoff your engine.

• Keeping your car well maintained will make itmore efficient, producing fewer harmful emissions.

• If your car does not run on unleaded petrol (carsbuilt after 1991 can use unleaded fuel withoutadjustment), think about having it converted. It isworthwhile to make the change because unleadedis significantly cheaper than leaded petrol and ifyou drive many miles, are going to keep the car forsome time or care about the environment, you willsave money as well as reducing harmful emissions.


• Drive at a lower speed especially on motorways.You use 30% more fuel driving at 70mph than youwould do if you drove at 50mph.

• Keep the tyres at the correct pressure: if yourtyres are under-inflated by 7psi or more you couldbe wasting half a gallon of fuel per tank.

• If you have a roofrack that can be removed, takeit off when it is not needed as it makes the car lessaerodynamic and hence will use more fuel.

• An incorrectly adjusted carburettor can cause ahuge increase in fuel consumption. Another reasonfor keeping your car well serviced is that it is lesslikely to break down and leave you stranded.Although you can never predict when you arelikely to break down, if you do and are not amember of a rescue service then it could cost you agreat deal of time and money.

• It is cheaper to buy 12 months tax instead ofbuying two 6 months discs.

• If you are not using your car for a few monthsyou can reclaim some money by sending your taxback to the DVLC with the appropriate form fromthe post office.

• When your car is in need of repair try a numberof garages before deciding which one to use. Maindealer garages often charge more than double thatof small local garages.


• Be sure to instruct the garage to call you beforeperforming any work that you have not instructedthem to do. It is easier to negotiate before they startthan after they have finished.

• If you think that the garage has not fixed whatthey had agreed to do, take your car back and makesure that they put it right.

• If, when given a bill, you think it is excessive,ask them why it is so high. It is always a good ideato ask them for an estimate before they start thework, even for small jobs.

Car servicing costs consist of parts and labour. Thelabour charge is normally fixed, whilst the partscan vary in price depending on whether they are‘genuine’ (being the same make as was originallyfitted), or are parts made by independentcompanies.

So what is the difference? Perhaps the first pointis the difference in price. If you get your car servicedat a franchised dealership, then you would normallyend up paying a higher labour charge and more forparts as they would always fit genuine parts wherepossible. There is nothing wrong with this exceptthat if non genuine parts were fitted at anindependent garage you would expect to saveanything from 10% to 500% depending on the partbeing replaced. Some items such as replacementwings can offer savings of hundreds of pounds ifthe non genuine parts are used. Don’t think thatby using non genuine parts you will be jeopardising


your safety: all parts have to be approved and arenormally identical to the ‘real thing’. If a garagemakes comments such as only genuine parts shouldbe used, ask them why, and get an independentsecond opinion.

A new car will normally come with amanufacturer’s warranty. If something goes wrongduring the period of the warranty you can returnthe car to the garage to have them rectify theproblem. Legally they are not obliged to repair thecar, but in practice they will. Many people feelobliged to take their car to the dealership to havetheir car serviced whilst it is under warranty, butthis is not necessary. However, if a fault arises dueto work carried out by another garage you cannotthen take the car back to the dealership and expectthem to fix it.

Extended WarrantiesAs with most products it is now possible to takeout extended warranties, which come into effectwhen the original warranty expires. They aredifferent from the original warranties in that theyare legally binding. But before taking out anextended warranty on a car, think carefully. Theycan be very expensive and the main drawback isthat they normally stipulate that you are tied tohaving your car serviced at the garage with whomyou have the warranty. If it is a main dealer it couldcost you hundreds of pounds extra in servicing overthe period of the warranty.


Communication

TelephonesIf you have teenage children you probably wishthat Alexander Bell had not been so clever andinvented such a such a costly instrument. For manyyears British Telecom had a monopoly on thesupply of the telephone service, but today thereare some alternatives. The standard telephone billarrives quarterly and is usually accompanied bygasps of horror as to its ever increasing amount.Help is at hand, as there is money to be saved inreviewing your choice of service.

The first thing to consider is the phone itself. Areyou still renting a phone from British Telecom? Ifthe answer is ‘yes’, then send it back to them.Modern telephones can be bought for as little as £8so after less than one year you would have savedmoney by not renting a phone from BT. If youstill have the old type of sockets there is a charge ofaround £30 to fit the new one.

Cutting down the phone billDepending on the size of your average quarterlyphone bill there is a number of options that couldsave you money. BT offers services designedspecifically for heavy and light users. Option 15 isfor heavy users, who have large phone bills. Atpresent for a £4.99 quarterly charge you receive a


discount of 10% off all direct calls. There are alsospecial schemes for business users.

Although having an itemised bill can invade privacyit is a good way of monitoring usage. If you havechildren, especially teenagers with friends abroad,you will know exactly how much they have beencosting you. If you are feeling particularly Scrooge-like you can deduct the amount from their pocketmoney!


• Having an itemised bill is normally the mostefficient way of reducing the length of phone calls,as you are more aware when you are making thecall that it will show up on the bill.

• Have a stopwatch by the phone so you can seefor how long you have been on the phone.

• It is possible to prevent your phone from beingused to dial premium rate numbers which can costup to 50 pence a minute. Contact BT for furtheradvice.

• Remember that when you phone a mobile phoneit is much more expensive than phoning a land line.

• Try to make phonecalls during off peak periods.

The majority of the nation still uses BT, butcompanies such as Mercury and Cable companiesare taking a greater share of the market. If ‘cable’ isavailable in your area they can supply a phone lineat the same time, and you will have no further needfor BT. Some of the cable companies offer free offpeak calls to other cable users in the area. This isideal for a person who makes many calls locallyand at off peak times.

Mercury was formed in the 1980s and has struggledto make an impression against one of the mostpowerful companies in the country. They use BTlines as it would be uneconomical to have two setsof lines, and they also have phonebooths whichare cheaper than BT’s. Mercury is a service that is


used in conjunction with BT’s. For a smallquarterly charge, you can save 20% on all longdistance calls routed via Mercury.

Mobile phonesAs these phones become cheaper and moreaccessible to everyone, it is important to be awareof the different tariffs and services available. Thosewho expect to make a large number of peak ratecalls can opt for a tariff that combines a highmonthly rental charge with low cost peak rate calls.If you expect to use it mostly for incoming calls, alower monthly charge is available with higherpriced calls. Some tariffs charge per second used,while others round up to the nearest thirty secondsor minute, the latter being more expensive. Someservices have limited geographic coverage, and theirprices tend to be correspondingly low.

Whichever tariff you are on, using a mobile phoneis much more expensive than a land line phone, souse with care.

As well as choosing the most economical tariff,there is currently a choice of digital or analogueservices. Digital services offer clearer sound qualityand some degree of ‘future proofing’ at a highercost. Analogue services are cheaper but will beobsolete in a few years, and will eventually requirereplacement.


Finance

It is hard to get through life without having to usea financial institution such as a bank or buildingsociety, although some people do manage it. Thedifferences between banks and building societiesare reducing each year with a number of buildingsocieties now having bank status and offering thesame services. For simplicity the word ‘bank’ willbe used to cover both type of institutions.

Banks offer a wide range of services, including asafe place to keep your money, cheque books, directdebit, standing order facilities, money lending,financial advice, stockbroking, pensions and lifeinsurance. The banks are very keen to expand theirnon-banking services such as insurance and are quiteaggressive with their marketing tactics.

The major high street banks are always telling usthat we should be banking with them instead ofwith the opposition. They are all characterised byone line slogans, such as ‘The Listening Bank’, or‘The Bank That Likes To Say Yes’. But in realitythey are all much the same, and when you havemoney they are only too willing to say ‘yes’ but itis usually a completely different story when themoney runs out.

Before selecting in which bank to deposit your hardearned money it is worth taking a little time to


choose. The ‘Big Four’ (Barclays, Natwest, Lloydsand Midland) have branches in practically everytown in the country, and though each branch ofone particular bank should offer the same serviceas any other, it does not appear to work like that.Much depends on the staff working at a particularbank, and if you are able to build up a good rapportwith your banker, you will find it easier to borrowmoney.

Personal contact is vital for a good relationship withyour bank. If they know you only as a set of figureson their computer, there will be no room forleniency should you suddenly go overdrawnwithout authorisation or find yourself with anyother financial problems. If they know nothing ofyour character and reliability they will act strictlyaccording to the rulebook when it comes tocharging the highest possible penalties. If you areknown to them as someone who is not going todefault on money owed, you will be treated withmore trust and respect, and will not have to paysuch high penalties. Becoming personally knownto and developing a good relationship with yourbank manager will normally save you money inthe long run.

Developing a good rapportwith your bank can only

work in your favour


Saving your moneyThere are still people who simply do not trust banksand building societies and would rather keep theirmoney hidden in the house or garden. Is this a signof eccentricity and foolishness or are they merelywise in not trusting the banks or building societies?The overnight collapse of Barings, Britain’s oldestmerchant bank, demonstrated that even a solidlooking worldwide banking organisation can topplelike a house of cards, taking with it the funds of allthe ‘little people’ who trusted it.

Once you have deposited your money in the bank,you normally assume that it is safe, nonetheless.This it may be true, but whether you wouldapprove of the way your bank spends your moneyis another matter. Some banks make a point ofavoiding investing their funds in countries run byoppressive regimes with poor human rights records,


but many banks judge investments purely onfinancial criteria.

There are many different types of bank accounts,but basically they can be divided into currentaccounts and savings accounts.

Current accounts are for everyday usage, yourmoney is instantly accessible but you will receivelittle or no interest on the money in your account.

Deposit or saving accounts are available with ahuge range of facilities depending on a number offactors, such as how much money is being invested,how long it is going to be invested for and whetheryou want easy access to the money. It is importantthat you choose the most suitable account for yourneeds. For example, a penalty may be incurred ifmoney is withdrawn at short notice.

BorrowingIt is much easier now to borrow money whichmakes it all too easy to rely on the banks if you areshort of money. If credit is used sensibly it can helpwith budgeting, but many people find that if theyare offered the opportunity to borrow money theydo so, but find repaying it more difficult.

Before borrowing any money decide how muchyou really need to borrow and, perhaps moreimportantly, whether you can afford therepayments. Borrowing money is expensive: if any


organisation lends you money they will want toearn a profit from the deal.

BanksThe normal choices through the banks are in the formsof overdrafts or loans.

OverdraftsOverdrafts tend to be for short term borrowing,(up to a year), or for regular short dips into thered. Certain bank accounts offer a small freeoverdraft which is useful if you are always slightlyshort at the end of the month. Make sure that youroverdraft is authorised, otherwise you be will beheavily penalised for going overdrawn.

LoansA loan is normally for a minimum of one year, butrepayments can be spread over many years.Normally the larger the sum borrowed the longeryou can have to pay it off. Interest rates tend to belower for the larger amounts.

Other sourcesPrivate finance companies advertise heavily,offering money to all. However they are often veryexpensive and such an agreement should not beentered into without first trying other sources.Before you enter into a loan agreement find outexactly how much you are paying, not only permonth but what percentage interest per annum thisworks out at. It is common to see companies


advertising to lend money, quoting figures in termsof monthly payments, with the annual percentagerate in small type. This is misleading: the amountthey are quoting for repayment sounds moreaffordable than it really is.

Always find out what the annualpercentage rate is, don’t just look

at how much the monthlyrepayments are

Store financeMany of the high street stores now offer their owncredit facilities and store cards. They even giveinstant credit, so if you have several of these cardsyour debts can soon begin to get out of hand. It isalso worth remembering that in general it is cheaperto use a standard credit card as opposed to a storecard. One plus point of store cards is that theysometimes have special offers for cardholders, suchas shopping evenings for cardholders only ordiscounts, but generally if you are trying to savemoney avoid cards of this nature.

The other alternative to a store card is to use theircredit instalment facilities. You can pay off thepurchase with monthly payments: this again is anexpensive way of borrowing, so try your bank first.


Do you check your statements?I still find it hard to open my bank statements eachmonth. They can sit there for a couple of daysbefore I summon the courage to take a look; whenI finally do open them I tend to glance with squintedeyes in the hope that the news will not cause toomuch pain. However, after a few days of comingto terms with the balance, it is important to checkthe statement for any errors. It is incredible howmany errors are made. Studies have found that asmany as one in eight customers are chargedincorrectly each year by their bank.

To help prove any anomalies it is important to keepreceipts of purchases so that you can check theamounts you have spent against those on yourstatement. If you discover any discrepancies contactyour bank immediately.

If the bank credited you with more money than itshould have done, you might think that it is yourlucky day. Unfortunately they usually spot theirown mistakes and help themselves to the moneydirectly from the account. If you have already spentit or are heading for Mexico, they will do their verybest to get their money back, to which they areentitled. If they credit you erroneously and youspend or keep the money whilst being aware ofthe mistake, you are guilty of theft, so it pays to behonest in these situations.


If you have arranged an overdraft or some othertype of borrowing facility make sure that you getthe details in writing, e.g. how much interest youare paying, when it has to be paid off, etc. Thisway if there is any disagreement you havesomething more solid than a verbal agreement.

Finally, if the bank has made an error with youraccount and you have to spend time and moneyrectifying this mistake, try to get some form ofcompensation from the bank. They are only toohappy to charge for letters they write to you, sowhy not do the same to them? Invoice them forthe same amount they would charge you if the errorhad been your own.


Investments

If you have surplus money as a result of all theeconomies in this book and you can refrain fromspending it, why not invest? Once you have madethe decision to do so, and have decided how muchmoney you are going to put into the investment,you have to decide where you are going to invest,for what period of time and how much risk youare willing to take.


It is this risk element that will determine whereyou invest your money. If you are looking for asafe investment it is unlikely that it will produce ahigh return. Normally the higher the risk thehigher the potential return. It is sensible to spreadyour investment in a number of areas, some lowrisk, some medium and some high. Just rememberthat if you invest in a high risk venture you couldend up with nothing. Investing in a high riskventure is akin to gambling and should be viewedwith the same rule - never invest more than youcan afford to lose.

• Low risk - Banks, building societies, NationalSavings, premium bonds

• Medium risk - Unit trusts, Personal Equity Plans(PEPS), Investment bonds

• High risk - Shares, Business Expansion Scheme

Although investing in shares is risky there are oftenother fringe benefits. For instance, if you own acertain number of shares in P&O you can get cheapferry crossings.

One recommended method of saving is throughthe Tax-Excempt Special Savings Accounts(TESSAs). This allows you to invest to invest upto £9,000 over a 5 year period. At the end of fiveyears you would receive the interest tax free, therate of which will vary from bank to bank.


Before investing always seekprofessional financial advice,

and be wary of people youmeet in the pub who tell you

of a great opportunity toinvest in a new venture


Insurance

The purpose of insurance is to protect ourselvesfinancially against the possible occurrence ofundesirable and/or costly events. In other words,it limits life’s gambles. It is possible to insure almostanything. Professional musicians, for example,might insure their hands so if they were involvedin an accident in which their hands were damagedthe extent that they could no longer play to a highstandard, they would receive a payout from theinsurance company.

The insurance companies have to work out the riskinvolved, i.e. the likelihood of that event occurring.If the risk is a large one, the premium paid will behigh, and if they believe there is a low chance ofthat event occurring then this will be reflected in alower premium.

House and Building InsuranceIn case you do not have your contents or houseinsured because you feel that you just cannot affordit, you are taking a huge risk. Although the aim ofthis book is to save you as much money as possible,it certainly does not advocate taking these sorts ofrisks in order to save money. Many people whoare not insured are short of money and decide totake a chance. When they are then burgled theyfind themselves in a dire situation. It would be


advisable to sacrifice other pleasures instead offorsaking basics such as insurance.

It is up to you to keep up with insurance payments.It is a familiar story to hear of people who go toclaim on their insurance only to be told that theirpolicy is void due to a failure to keep up thepayments. This can be devastating to families asthe insurance companies do not tend to respond to‘sob stories’.

That’s the warning over! It’s time to return to theissue of saving some money. Very few people whenthey are sent their renewal notices for insurancedo anything but return it with the payment. Thisis exactly what they are hoping you will do. Aswith many of the ideas for saving money in thisbook, a little effort is all that is required to makeeconomies: for the sake of half on hour or so youcould save yourself hundreds of pounds.

The process is simple. After receiving your quote,phone a few reputable insurance firms and ask fora comparable quote. I would almost be prepared toguarantee that anyone could make some saving ifthey tried this. If, or should I say when, you get acheaper quote, phone up your existing insurer andtell them that you are going to take your businesselsewhere as you have found a more competitiveprice for the same cover. They will be reluctant tolose your custom and should try to beat the quoteyou have been given. If they cannot match it, take


out a new policy and congratulate yourself onsaving money. Don’t forget to do the same thingnext year, as it can vary from year to year as towho offers the best deals.

Types of policyThere are a couple of basic house contents policies:

• The first is calculated by the value of yourcontents, referred to as sum insured policies.

• The second type is calculated by the number ofbedrooms a property has. In this instance you donot have to calculate the value of the housecontents. With this type of policy you are insuredfor a fixed amount, say £40,000 for a 4 bedroomhouse. However, if the value of your contents isonly £30,000 you are over insuring yourself andyou can be sure that this will cost you money. It ismore sensible to work out the value of yourcontents so that you know exactly what you arepaying for.

Not all the policies give the same cover so checkthe policy you have covers all of your requirements.Certain items such as valuable musical instrumentswould normally have to be insured separately.

Life insuranceThe future remains a mystery, life events cannotbe planned or controlled. Efforts can be made toshape our lives, for example having a healthy


lifestyle should mean that you live longer, but thereare no guarantees. If you have people who arefinancially dependent on you, life insurance is themost obvious choice for giving you and yourdependants financial peace of mind in the event ofredundancy, illness or death. As with all insurancepolicies there are different types that can be takenout according to your needs. It is essential whenyou are trying to save money that you do notsacrifice things such as life insurance.

Personal pensionsWe all look forward to the time when we can retirefrom work and spend our time exactly how weplease. To be able to enjoy your retirement youneed money, and this requires financial planning.At the age of retirement everyone is currentlyentitled to a basic state pension, but it falls waybelow what would be needed to live a life of luxury.If you have paid full rate National Insurancecontributions as an employee you may be entitledto an additional pension from the State EarningsRelated Pension Scheme (SERPS). As well as thisyou can have a pension which is organised throughyour place of work or you can have your ownpersonal pension.

In 1988 there was a change to the system, givingpeople the chance to opt out of SERPS. The statestill makes a contribution, but will contribute to ascheme chosen by yourself. This means that youhave more freedom, but also that you have to decide


which scheme you believe to be appropriate foryour future requirements.

Choosing a pension scheme is no different tochoosing any other purchase: there is a vast rangeand some are better value than others. It isimpossible to give advice as to which would be themost suitable pension for everyone as there are toomany variables. One piece of advice is always toseek the help of an independent financial adviserand think carefully about what your requirementsare, how much you want to pay into the scheme,what you expect out of it, etc.

There are two basic types of adviser, ‘independent’and ‘tied’. An independent agent offers policiesfrom a number of companies, whereas a ‘tied’ agentis, as the name implies, tied to the policies of oneparticular company.

The golden rule is never rush into any financialcommitment, and compare prices as there arealways good deals and bad deals. Take the time tofind a ‘good deal’ as you could be paying into ascheme for most of your working life. Rememberthat there is a 14 day ‘cooling-off’ period aftersigning for a personal pension scheme, which givesyou the opportunity to cancel the agreement. Thereis an exception to this - if you are transferring rightsfrom a former employer’s scheme to a personalpension, there is no ‘cooling-off’ period.


Security

You might wonder why there is a section onsecurity in a book about saving money. Well, thereis a connection. There is no point in making aneffort to save money if you are going risk thecontents of your house through poor security. Weall hope that it will never happen to us, but there isno sense in taking a risk when there is so much atstake.

It is alarming how many burglaries occur everyyear. The British Crime Survey puts the figure atclose to one and three quarter million. They are areality for everyone. It is tragic that after workinghard to buy your possessions someone can justcome along and help themselves. Not only is theloss of property distressing, the intrusion into yourhome is for many a psychological burden that canstay for years.

The risk of burglary is higher where the populationis denser, such as in the inner cities, but clearly noteveryone can move to a rural area simply to reducethis risk. The best way to avoid being burgled is totake appropriate security precautions. Althoughthey will not guarantee your protection they canlessen the chance of a break-in.

The majority of burglaries are committed by theopportunist thief, who will look for certain


indicators in a house and then decide if it is worthtaking a risk, e.g. are there any windows left open,or is the house surrounded by tall fences or hedgesgiving plenty of cover? A burglar will look for thehouse that appears to be an easy target and has littlechance of him being discovered.

Here are a few crime facts:• About 50% of burglaries occur during the day

• About 80% occur when there is no one at home.

• The rear of the house is the most popular pointof access for burglars, either through the back dooror windows.


There are certain items that burglars tend to gofor, and most of the time they are limited to whatthey can carry. Although there have been storieswhere thieves have left houses bare, includingtaking the radiators, sinks and toilets, fortunatelythieves are not normally this organised. Thefollowing are among the most popular items stolen:

• Televisions• Videos• Cash / credit cards• Jewellery• Stereos• Camcorders• Cameras• Computers• Compact discs

As the statistics show, the chances of being burgledare now too high merely to be regarded as anunlikely eventuality, so it is vital to take securityprecautions. As Lord Baden Powell said to hisscouts, ‘Be prepared’. The more precautions youtake the less risk you have of being burgled.

Here are a few security tips:• Fit window locks to all easily accessible windows.

• A five lever mortice lock, plus a cylinder lockshould be fixed to the front door.

• A lever mortice sashlock should be fitted to theback door, and a good heavy duty bolt.


• Put locks and secure bolts on all French windows.

• Keep tools and ladders secure so that they cannotbe used by burglars to help them gain access.

• Fit timer switches to lights so that it appears youare in at all times. The more you have the greaterthe illusion.

An unsecured house is likean invitation to a burglar.Secure your house now!

• Do not leave valuable items in view.

• Remember to cancel milk whilst away.

• Inform neighbours if you are going away so thatthey can keep an eye on your property.

• Join a neighbourhood watch scheme.

• Photograph valuables, so that if you are burgledyou have proof of what you owned.

It is a good idea to keep the receipts of all valuablegoods as it helps with the insurance claim. Makesure the receipts are in a safe place; if they get stolen,it will make it harder to claim on your insuranceand it will also benefit the burglar.

Be extra vigilant at Christmas as this is a favouritetime for burglars. There is nothing more distressing


than having all your presents stolen, especially ifyou have young children who will be distraught ifthey lose their toys.

AlarmsIf you are thinking about installing an alarm system,make sure that you get a reputable company toinstall it. There are many different servicesavailable, and many companies charge an annualfee. Some of the more expensive alarms send amessage to the police if the alarm is activated.Having an alarm is not a guarantee that you willnot get burgled, but it might reduce the chances.Insurance companies usually offer a discount onhomes that are secured to a certain standard. Apartfrom protecting your home, thorough securitycould protect you and your family, as well asproviding peace of mind.

Con-menApart from the common ‘break and entering’ typesof burglary, some thieves are more canny. Therehas been an increase in the number of bogus callers,particularly those who pose as bogus officials, suchas representatives of the council or electricity board,or even as policemen. They often wear theappropriate uniforms and have fake identification,making it hard to distinguish between impostorsand the ‘real thing’. This type of criminal usuallypreys on the elderly who are less likely to noticethe difference. If you ever suspect an official callerto be an impostor under no circumstances let them


into your house. Call the official organisation theyare claiming to be from and check they have sentsomeone out or that the ID they have belongs toone of their employees. It is sensible to have a doorchain fitted so you can check their identity beforeletting them in. If you go off to phone forverification of their integrity keep the door closed,as a genuine caller will not mind you taking thisprecaution.

It is not just bogus officials you have to watch outfor. There are people who go from door to dooroffering to buy ‘antiques’ or other items. They arenormally con merchants who will pay you afraction of the true value of the item. Don’t befooled by their stories, sometimes they can be verypersuasive. If you are interested in selling any itemssuch as antiques or jewellery have them valued bya reputable dealer first. You might own an itemsuch as a small vase that you think is worthless butturns out to be worth hundreds or even thousandsof pounds. It would be a shame to let a ‘dodgydealer’ give you a few pounds for it when he knowsperfectly well its true value.

Also be aware of ‘cowboy’ workmen who travelaround the country persuading people to haveunnecessary work carried out on their homes. Thestandard of work tends to be poor, and they willbe almost impossible to track down subsequently.


Entertainment and Leisure

Life is to be enjoyed. For some a perfect day’srelaxation might involve a twelve mile walk, whilefor others it might be to sit in front of the television.There are literally thousands of ways of spendingyour time in order to relax: some may requiremoney, others might be free. If you are short onmoney then it is a good idea to try to limit thenumber of activities you do that cost money andtry to indulge in those pursuits that are free.

• Instead of going out to the cinema, which cancost easily £15 for a family of four depending whereyou are, hire a video. To make it more like thecinema turn the lights down low, make your ownpop corn and hot-dogs, and arrange for someoneto sit behind you and talk throughout the film.

• Don’t forget to make use of the countryside whileit’s still free. When was the last time you went fora walk? Children love going on walks and it is agreat way to introduce to them to nature, as wellas being good for the health.

• Look out for free concerts which are usuallyadvertised in local papers. They can take place inchurches, village halls or in open public places. Justbecause the entertainment is free doesn’t make itinferior to concerts you have to pay for, so makethe most of them.


Eating out is hard to beat. It gives you theopportunity to let someone else worry about thecooking, the serving and the washing up. You aremade to feel special, and the meal will be free fromthe interruptions of home. In this country, though,eating out is an expensive luxury. This is a shamebecause on the continent eating out is much cheaperand is therefore enjoyed more frequently.

So how can you save money if you still want to eatout? Look out for restaurants that offer specialdeals, like two for the price of one. Pizza restaurantsand fast food chains are particularly good in thisrespect.

• Remember it is usually cheaper to order a setmenu rather than ordering à la carte. If you aretrying to economise it would certainly not spoil


the occasion if instead of ordering three coursesyou just have two or share the third. You mightfind that you enjoy the meal more because you willnot leave the restaurant feeling bloated.

• Another way of saving money on entertainmentis to consider buying stand-by tickets for shows.Most theatres and concerts will have a number ofreduced price tickets that are available on the dayof the performance, and they can be as little as halfprice. This is a great way of seeing live events onthe cheap. For some popular shows, however, therewill be a big demand for seats, and you take therisk of not getting any tickets.

Look out for cheap ticketsfor shows and concerts, butcheck that the seats are not

situated behind a pillar

• If you are meant to be getting tickets for a specialoccasion then it is not worth taking any risk. Theremay be no guarantee of success, and you might endup having to buy them from a ticket tout who willcharge you much more than the face value of theticket. This is, of course, something that you shouldnot be doing if you are trying to save money.Planning ahead to get tickets for a popular show


will avoid you having later to pay the rising‘market’ price touted tickets.

Holidays

It is usual to start planning a holiday having justreturned from one. The thought of a holiday is whatkeeps many people going in their jobs. It does notalways matter if the holiday is a week in theBahamas or a couple of days in Clacton, it is justnice to get away.

A week on holiday is normally going to cost morethan a week of ordinary living, even if you arestaying with friends. There are ways to makesavings, giving you the chance either to have morespending money or the opportunity to save for


your next holiday. Here are some ideas to cut downthe expense of taking a holiday. Bon voyage!

Late AvailabilityThose who are afraid of taking a gamble are oftenthe first to complain that they never get anybargains. Unfortunately, you normally have to beprepared to take some sort of risk in order to get a‘good deal’ whatever it might be, and this is halfthe fun.

If you can be fairly flexible as to when and whereyou go, prepare to save a lot of money. Most touroperators heavily discount holidays that they havenot sold close to the time of departure. Some dealsoccur a few weeks prior to the start of the holidaywhilst others can give just 24 hours notice. Thelonger you leave it the more money you are likelyto save, and the less choice you are likely to have.Some of the most frequent destinations that arereduced in price are holidays to Spain, Portugal andTenerife, but quite frequently holidays to Tunisia,Gambia and the U.S.A. turn up as bargains. In fact,a tour agent with a holiday almost anywhere couldbe desperate to sell the final seats on the plane orrooms in the hotel at a knockdown price in orderto diminish possible losses.

The place to look out for cut price holidays is ofcourse in your local travel agency. They are oftenin the window, but if you don’t see any it is worthasking. One of the best places to find a cheap


package holiday is on the teletext pages of thetelevision. There are normally numerouscompanies offering rock bottom deals. If you arethinking of booking a holiday over the phone fora late availability holiday there are some points tocheck first.

It is a good idea to have a few brochures with youso you can compare the original price of the holidayagainst what they are offering. You can also usethe brochure to see if there is a picture of theaccommodation, as it will probably be your onlychance of seeing it, otherwise you are taking agamble.

On the subject of taking a gamble, many of thesespecial cheap deals suffer from a few drawbacks.Quite often, although you might know where youare going, it could be the case that theaccommodation will be decided when you arrive.You would normally be informed of the minimumgrade, e.g. the lowest you would be put in wouldbe a 3 star but you might be lucky and be put in a4 star. The problem with this is that hotels varygreatly and you might end up miles from whereyou really want to be. On the other hand you mightbe paying for a 3 star and end up in a luxurious 4star. Before you book this type of holiday thinkcarefully about how much of a risk you areprepared to take. Many people take this type ofholiday as a second or even third holiday and theyare happy to be anywhere that is away from home.


It is not only holidays that are discounted. It is alsopossible to obtain late availability flights at areduced price. Again check with your travel agent,teletext or travel pages of the newspapers.

If package tours are not your scene and you fancya cheap holiday, have you considered a house swap?There are companies that arrange exchanges, i.e.you let people use your house whilst you are awayand you use theirs. Theoretically you could bestaying in Florida, whilst an American family hasthe pleasure of experiencing a summer holiday inyour home. It might sound a little strange, andconjure up visions of coming home and findingyour house destroyed, but the companies thatorganise these exchanges usually try to vet theclients and deposits must be left in case of damage.The exchange company charges a fee for arrangingthe swap. Bear in mind that a swap would normallybe between similar types of properties.

If you have friends abroad why not suggest a swapwith them? It means that all you have to pay forare the travel expenses and food.

If you have a large family or like to holiday withfriends another option is to rent a large house. InFrance, for instance, a beautiful Chateau that couldsleep 15 people complete with a swimming poolwould be cheaper to rent per person than fourfamilies renting smaller individual holiday homes.


A large group of friends on holiday can be greatfun, with barbecues and pool parties. If there are anumber of families the children can keep each otheramused leaving you the chance to relax for a change.Parents can take it in turns to organise things forthe children and even the cooking can be done inrotation. One word of warning: make sure that youreally get on with these friends, because the day inday out intimacy can cause friction

Another possibility is staying at home. Going onholiday does not always turn out to be the relaxingstress free period that it is supposed to be. A holidaycan often be most traumatic due to missed flights,delays, noisy hotels, bad food, sickness, theft,dissatisfied children, etc. Sounds familiar? So whynot leave all that upheaval behind, stay at home,and use all the money you have saved for buyingluxuries in which you would not normally indulge.Treat yourself: go to the local Italian Restaurantand have a bottle of Chianti each night. By the endof the ‘holiday’ you might even think you are inItaly!

One other reason for staying at home is to take thetime to discover some of Britain. OK, the weatheris variable at the best of times, but the scenery is asbeautiful as any in Europe.


The Wedding

It is referred to as the ‘happiest day of your life’,and it will also be one of the most expensive! Manypeople spend vast sums of money in order to makeit that perfect day, but is it all necessary? The actualwedding day goes so fast that is often hard toappreciate all the effort that went into planning it.

A wedding does nothave to cost a fortune

to be memorable

It is the ambition of most brides to have the ‘dreamwedding’, with everything planned to the last detail.Weddings in Britain appear to differ to those inmany European countries, who take a more casualattitude to the ‘Big Day’. This book is not tryingto tell you how to plan your wedding, as it is apersonal affair, but bear in mind that after thewedding money is usually tight. There are ways ofkeeping the costs of a wedding down withoutmaking too many sacrifices. You could save moneyin certain areas and spend it on something elseconnected with the wedding. You may feel,however, that you would rather spend as much asyou can afford (or more), which is understandable.


The following are the main costs of a wedding:

• Clothes• Hiring the church• Invitations• Photographer• The reception location• Food and drink• Flowers• Transport• Honeymoon

ClothesA wedding is the perfect opportunity to dress up,not only for the bride and groom but for the gueststoo. Brides can spend months looking for the dressthat will bring tears to the eyes of the guests andhopefully to the groom as well. Wedding dressescan cost thousands of pounds, or just a few hundred:however much it costs, for a dress that wouldnormally only be worn once it is a lot of money.

There is the option to rent and although you wouldnot have the pleasure of showing your childrenyour wedding dress and wishing you could still getinto it, it would save you money. One advantageof renting is that you could hire a most exquisitedress for a lot less than buying an inexpensive dress.

Other options include buying a dress so you havethe delight of knowing that you are the first personever to wear it, then selling it after the wedding to


recoup some of the money. Alternatively why notbuy a used dress from an agency specialising insecondhand wedding dresses?

The groom, if going for the traditional morningsuit, would nearly always hire an outfit, but manypeople who are on a tight budget are using themoney they would have spent on hiring a suit tobuy a new suit that they can wear after the wedding.

The VenueThe church normally makes a charge for its useand if you want a choir it will cost even more. Evenif the wedding is in a registry office there will be acharge. There is not much scope for saving moneyhere.

The InvitationsMaking a wedding list involves spending hourswondering who to invite and who not to invite,and this always causes friction. When the list iscompleted the invitations need to be printed. It willsave you money if you can typeset and print themon a home computer with desktop publishingsoftware, or if you know someone who can do itfor you. Gold embossed invitations are not vital:save cash by choosing a nice typeface but printingwith black ink on white paper.

TransportRather than turning up to the church in an ordinarycar, most people hire something a little special. The


choice is normally something like a large luxurycar or a classic such as an old Bentley. If you wantto save some money why not try to find a friendwith a classic car who would be willing to driveyou for free? Another alternative is to approach aclassic car club in your area and ask if any memberswith a classic car could offer you a reasonable deal.


The ReceptionDepending on the budget there will be certainparameters as to what type of reception you hold.At the budget end of the scale is a DIY receptionheld at home, a close second would be a village hallor function room at a pub.

Hotels are the most expensive option but are idealfor receptions as they can often organise the wholeevent, including food, drinks, toastmaster, and discoif required and it is convenient for putting up guestswho are staying. Most hotels offer special packagesdepending on the services required. If you wish tocut the bill you could have a cold buffet, but if youare feeling extravagant you could go for a three orfour course meal. Bear in mind that there isnormally room for negotiation whatever youchoose.

Don’t forget that if you are planning on having areception for 50 guests, the hotel will not want tolose the chance of getting your custom. If theywon’t budge on the price of the food try to getthem to throw in some free drinks. If they refuseto make any concessions try to get some otherquotes from similar hotels, as they will varydramatically in price. Choosing where to have thereception is a big decision and it is important thatyou are going to be happy with your choice.Unfortunately a hefty price tag will not alwaysguarantee high quality, so think carefully beforeyou commit yourself and your guests.


If you have a large garden, the wedding is in thesummer, and you have a great deal of faith in Britishweather, then why not have an al fresco reception?I went to a beautiful wedding in France where thereception was held in a garden overlooking thePyrenees. The food was kept simple: salads andcheeses etc, but this was washed down with aninexhaustible supply of local wine. The guests wereseated at long trestle tables which were borrowedfrom a local school, and people served themselves.It was one of the most memorable weddings I haveever been to: the secret was the weather and thebreathtaking views and the refreshing lack offormality.

If you decide to hold your own reception why nottake a trip to France and stock up on wine andbeer? A barbecue can be a fun, straightforward andcheap way of feeding wedding guests at summerreceptions.


Keeping The Children Amused

We have all been told stories of the bygone dayswhen children were given a hoop and a stick toplay with, and if they were lucky they had a bag ofmarbles or a lump of coal. This was a far cry fromthe current world of computer games and the latestspace toys.

One of the main contemporary problems is thatmany toys are merchandise products derived fromfilms or television programmes. Whatever mightbe in vogue one month could well be out the nextwhen a new super hero arrives. A popular cartoonor television series might be accompanied by a rangeof products such as toys, books, stickers, clothesor even food.

Children display a remarkable degree of persistencewhen it comes to trying to make parents purchasethese products. It is all very well if you can affordto indulge your children with all that they want,but for those with a low budget or even a moderatewage it is just not possible as these items are farfrom cheap. Trying to teach your children the valueof money and instil in them a sense of control is allpart of being a parent. Children have to learn thatthey cannot have everything they desire becauselife unfortunately is not quite like that, althoughexplaining this to a young child is never easy.


Keeping a child amused does not have to cost agreat deal of money. We may laugh at recollectionsof how children were kept amused in the past, butperhaps we have just forgotten how much fun couldbe had without incurring great expense? Many ofthe old pastimes and games have been lost in a hazeof television and computers. Just remember thatpersonal computers have only been around forabout ten years! People might argue that keepingchildren amused has always been expensive, but atleast computer technology tends to fall in price asit improves in quality, and there are many finemultimedia educational packages available nowwhich will become less expensive as time goes on.

For those who are not enthusiasts of the computerage, here are a few reminders of how to keep thelittle darlings amused for next to nothing (or evennothing at all):

Face paintsThese are usually available from joke shops or toyshops. Children can spend hours painting theirfaces, though they find it even more amusing if youlet them paint yours!

Dressing up boxNo family should be without a dressing up box.Simple outfits can be made such as cowboy’s,Indian’s, nurse’s, and soldier’s. Children enjoyputting on adult clothes, especially hats and wigs.


Papier mâchéAll that is required for this is flour, water and paper.By covering objects in layers of paper with the ‘glue’all sorts of things can be made, which can then bepainted.

Poster PaintsHow about trying to encourage your child to paint?All children have a penchant for painting pictures.All you need is set of poster paints that are mixedwith water (very sensible when they cover you andthemselves in paint), brushes and some large sheetsof paper. Children also enjoy painting with theirhands, or another alternative is to make shapes frompotatoes that can then be dipped in paint and usedto print shapes.

Traditional Party Games

SardinesThis game is normally played by children but adultshave been known to play it. It needs at least fiveplayers and a house. All the players congregate inone room. One player is sent off to hide, the lightsare turned off if it is dark, and then the other playersleave and try to find the first ‘sardine’ (The hiddenplayer). The idea of the game is for another playerto find the first sardine and they join them in theirhiding place. If you discover the sardine when thereare other players around you should pretend thatyou have not seen them, but return later and hide


when the coast is clear. The game is over when allthe players are hiding in the same place, if that ispossible!

Musical StatuesAll you need for this party game is some music.The guests all dance when the music is playing, butwhen the music stops they must pose in the positionthey are in at that moment. The controller of themusic then goes round looking at the statues,checking for signs of movement. Whoever movesfirst is eliminated, and then the music starts againand the remaining players continue dancing. Thiscarries on until there is only one player left andthey are then the winner. Once the players areeliminated they can try to make the remainingplayers move by trying to make them laugh.

MummiesThis is a classic game that will certainly bring aboutmuch amusement whether it is played by childrenor adults. It requires several teams of two, and aroll of white toilet paper for each team. A timelimit is set, usually about two minutes, duringwhich one member of each team has to cover theother head to toe in paper, trying to recreate thelook of an Egyptian Mummy. The winner is themost authentic looking mummy.

ChopsticksAll you need for this game is a bag of frozen peasand several pairs of chopsticks. Each player is given


a pair of chopsticks and a plate of frozen peas. Theidea is for the players to try to transfer the peasfrom the plate they are on to another dish withinone minute. The winner is the person who hasmanaged to transfer the most peas. (This game isnot suitable for young children as they are unlikelyto be able to use chopsticks).

Musical BumpsA slight variation to musical chairs. The guests arerequired to dance around whilst music is beingplayed, then when the music stops the childrenmust quickly sit down on the floor with their legscrossed. The last one to do this is eliminated. Thiscarries on until only one person is left.

Hunt the ThimbleOne player is chosen to hide an object whilst theother players are out of the room. It does not haveto be a thimble - it can be any small object, but it isimportant that the object is still on view andaccessible. The other players then return to theroom to hunt the thimble. When a player spotsthe hidden object they must sit down. The lastplayer to spot the object is the loser.

Cold, Warm, HotOne player is nominated to leave the room, whilethe others hide an object. Once the object is hiddenthe player who left the room returns. He must thentry and find the hidden object. The other playersgiven him clues by saying ‘Warm’ if he is near the


object or ‘Cold’ if he moves away from the object.As he gets nearer the object the temperature rises,eg. warm, hot, very hot, until the object is located.

Apple BobbingThis is traditional at Halloween, but it can be playedat any time of year. A large bowl, usually a washingup bowl, is filled with water. Depending on howcruel you are feeling you can make the water coldor warm! A number of apples are then put in thewater. Players have to kneel in front of the bowl,with their hands behind their backs, and try toextract an apple using only their teeth. This is notas easy as it might seem, unless you are brave anddunk your head right in. The first player to retrievean apple is the winner. Be warned: this game canget out of hand, and it is advisable to place towelsaround the edge of the bowl to absorb the inevitablespillage. Make sure an adult is around if youngchildren are playing.

Bun on a stringThis is a similar game to apple bobbing: it involvessuspending a number of buns from the ceiling withpieces of string. The buns must hang down at aheight that is accessible to the children. Thechildren must then try to eat the buns without usingtheir fingers. This can be very amusing to watch,but keep an eye out for cheats!

The final game is a personal favourite, and althoughnormally played by children, I have recollections


of playing this at student parties whilst atUniversity. I am unsure of the correct title to thisgame, but here are the rules:

A number of dressing up items are required, suchas hats, gloves and scarf, a die, a very large bar ofchocolate on a plate and a knife and fork. Theplayers must sit on the floor in a circle and roll thedie in turn. If a player throws a six they must puton the items of clothing and try to eat the chocolatepiece by piece with the knife and fork, until anotherplayer throws a six, when he must put the clothingon and do the same. The game continues until allthe chocolate has been eaten.


Entitlements

Social SecurityThe social security system is designed to offerassistance to people under certain circumstances.It covers a number of areas such as child benefit,income support, unemployment benefit, andhousing benefit. The list is almost as large as thenumber of forms that you normally have tocomplete for each benefit. Some of these forms arecomplicated to fill in, but unless you fill them inyou won’t get any money.

Each year there are millions of pounds of benefitsthat are unclaimed, and there are also millions ofpounds of benefits that are claimed illegally. Thedifference is that in the latter case the governmentdoes their best to track down the culprits, but itmakes no such effort to try to help those peoplewho are entitled to benefits but do not realise it.

Some benefits are available to families regardlessof status and income, such as child benefit, whileothers are means tested. Means tested benefits aregiven according to your financial position: they arenot always related to income because it dependsalso on how many dependants you have and if youhave any savings.

There are far too many benefits to list in this book,and in any case there is frequent legislation adding,


deleting or modifying them, so it is always advisableto contact your local security office or Citizens’Advice Bureau if you are in doubt as to whetheryou are eligible for any help. Unemploymentbenefit is only given to those who have paidsufficient National Insurance contributions. If youhave not paid enough National Insurance you willonly be entitled to Income Support.

UnemployedBeing out of work brings with it many hardships,not only a lack of money, but also a loss of dignityand pride. Saving money is usually very importantto those on benefit as money is usually in shortsupply. Make sure that you are claiming all thebenefits you are entitled to.

It is possible to get help with the cost of going toan interview if you satisfy certain conditions. Thehelp is meant for interviews that are away fromhome, i.e. beyond a normal daily travelling distance.You might also be eligible for the cost of up to twoovernight stays. Make sure that you apply beforeyou go away for an interview, as it is too late onceyou have already been.


Legal AidCertain professions are well paid because the skillsoffered are relatively scarce yet valuable toconsumers. The knowledge possessed by legalpractitioners is particularly expensive to access, yetvital for some aspects of life. Before you consult asolicitor get a few recommendations from friends,and find out how much they charge, as their ratesdo vary.

There is some good news, and the news is LegalAid. Legal Aid is funded by the government andoffers free or low cost legal help under certaincircumstances. There is normally a number ofsolicitors in any town or city who carry out LegalAid work. The deciding factor as to whether youare eligible for Legal Aid is normally related toincome. It does not matter if you own a home oreven have some savings, you might still receivesome financial help.

It is the solicitor who works out if you qualify forLegal Aid. There is a system called the Green FormScheme which is used for simple situations whereadvice is needed. If, however, you needrepresentation in court, you would normally haveto apply for Civil Legal Aid or Criminal Legal Aid.One point should be noted: if you manage toprocure money or property as a result of winningthe case, you might be asked to make a contributionto your solicitor’s bill, and it goes back into the


Legal Aid Fund. This is called the statutory charge,and in these instances the Legal Aid is more like aloan, though of course it is paid back by court‘winnings’ rather than out of your ordinaryearnings.

Qualification for Legal AidThere are certain limits on income and savings. Ifyou are above these figures you would not normallyqualify for Legal Aid. If you have a partner yourincome and savings will be counted as one, but thereis an exception to this rule, which is when the caseis between the two partners.

The amount of income and savings that is alloweddepends on which type of Legal Aid you need toapply for. At the time of writing, if your disposableincome is below £70 and you have savings of lessthan £1000 then you will qualify for help with theGreen Form Scheme. For Civil or Criminal LegalAid the allowances for both income and savingsare higher, taking into consideration expenses suchas rent or mortgage. At present the levels are adisposable income of £7,060 a year or less andsavings of less than £6,750. There are exceptions tothese rules, for instance pensioners are allowed tohave more savings than this. The allowances changeregularly, sometimes being raised to bring morepeople into the Legal Aid net, sometimes beingshrunk to save money. It is always advisable to findout the most recent figures from a Citizens’ AdviceBureau.


Here are a few other legal facts that might be useful:

• Everyone is entitled to free legal advice if theyare being questioned at a police station, regardlessof whether you have been arrested or not.

• Everyone is entitled to free legal advice on theirfirst appearance at a Magistrate’s Court.

• Many solicitors offer free or reduced cost firstinterviews under special schemes. Contact yourlocal Citizens’ Advice Bureau or the Solicitors’Regional Directory for more details.

Legal Aid Head Office85 Gray’s Inn RoadLondonWC1X 8AA

Council TaxNo taxation policy has ever been popular: in thepast there have been window taxes, clock taxes, andmore recently the introduction of the ‘Poll Tax’which came close to causing a revolt. We now havea replacement to the Poll Tax: the Council Tax,which is a little more popular. If you are wonderingwhat the money you pay is used for, well, it ismeant to help to pay for the local services that yourcouncil provides, though the levels of service andtaxes vary from council to council.

The council tax works on a similar system to theold rating system, where the amount paid is relatedto the value of the property. The value of your


property has been assessed by the Valuation OfficeAgency which is part of the Inland Revenue. Thereare eight council tax valuation bands.

Band Range of values at 1st April 1991A Up to £40,000B Over £40,000 and up to £52, 000C Over £52,000 and up to £68,000D Over £68,000 and up to £88,000E Over £88,000 and up to £120,000F Over £120,000 and up to £160,000G Over £160,000 and up to £320,000H Over £320,000

The banding of the houses was calculated from theirvalue in 1991. Many people feel that they are inthe wrong band, and are therefore paying too much(I don’t think you would be complaining if yourhouse was undervalued). Unfortunately it is toolate to appeal against that decision if your housewas banded under the 1991 valuation unless thegovernment has plans to revalue all the homes inthe country. There is a chance that you can appealif you have just moved into the house, and thereare six months within which time to appeal onceyou have moved in. It is also possible to appeal ifthere has been an alteration to the land near yourhome, for instance a new road. There are a numberof free booklets that have been produced, in manydifferent languages, on areas connected with thecouncil tax that are available from social securityoffices or some post offices.


It is possible to get help with paying your counciltax with council tax benefit. This is a social securitybenefit operated by local councils. Even if you arereceiving no other social security benefit you stillmight be eligible for council tax benefit. There maybe a discount on the council tax bill if there is onlyone adult in the house. If you feel you may beeligible for council tax benefit then contact yourlocal social security office for advice.

The council tax must be paid by home owners andtenants. ‘Homes’ includes all types of dwellingssuch as houseboats and mobile homes. The appealsare dealt with by the local councils, but be warnedit is a slow process. The first stage is to contact the‘listing office’ where you can put forward your case.If the dispute is not resolved after 6 months thenthe case gets automatically referred to a valuationtribunal.

The most effective way of putting forward yourcase is to get a valuation of the property, whichwill cost between £20 and £100. Back this up withother evidence such as photographs of similarhouses in the area that are in the lower band. Thereis one drawback, though: even if you win the caseand your house is put in a lower band the councilwill not refund you the money you spent on thevaluation.


Improvement GrantsThere are not many instances where thegovernment is willing to hand out money and theytend to stay pretty quiet about it, instead ofinforming those who might be eligible. Counciltenants are now able to claim compensation forhome improvements under the Citizen’s Charterscheme. There are many different rules andregulations that apply depending upon whatimprovements are made. The compensation is paidwhen a tenancy agreement is ending or if a newlandlord takes control of the property.

It is always advisable to get permission from thecouncil before making any improvements so thatno misunderstandings can occur.

The Right to Compensation was introduced inApril 1994 and compensation is only given forwork done after this date. There are quite a fewstipulations, and interior decoration such aswallpapering is not covered, but there is a fairlygenerous list of useful or potentially money savingwork that can be done, such as:

• Loft and cavity wall insulation• Central heating or other types of heating• Shower or bath• Toilet or hand basin• Double-glazing• Rewiring• Kitchen cupboards


• Insulation for water tank, pipes or cylinder• Security devices, such as window locks, but notalarms• Smoke detectors• Thermostatic radiator valves

Claiming CompensationThere are some fairly strict rules that must beobeyed if you are considering claimingcompensation. The compensation for work doneis paid when you leave your home, you only havefourteen days in which to make a claim, so beprepared. In order for the council to make apayment they must have proof of where you wereliving, what improvements were made, how muchthey cost and when they were done.

How much money you will receive will dependon a number of factors. If some of the work wascarried out with the aid of grants from the councilyou are not going to be able to claim anything asthey were the ones who paid for it in the first place.If the grant did not cover the full amount, however,then you would be compensated for the moneythat you paid yourself.

The council also takes depreciation into account:the longer it is since the improvements were madethe less compensation will be paid. The council alsohas the right to reduce the amount of compensationif they feel that the cost of the improvement wastoo high. The compensation includes the cost of


the materials and labour, but not your own labour.There is a limit of £3000 for any one improvement,and no compensation will be given for work thatcost less than £50.

To find out more information contact your localcouncil’s housing department.


Houses

Whatever type of house you live in it will alwaysrequire some sort of repair. Usually the older thehouse, the more looking after it needs. So theproblem is that as well as being expensive to buy,houses are also expensive to maintain. This sectionexamines ways in which those costs can be reduced.

When house hunting the most importantconsiderations are price, location, character, andsize. Before buying a house it is important to sitdown and consider all the possible implications.

Buying a house is usually the next step after renting,although some people are happy to rent all theirlives as it they do not have to worry about mortgageincreases or a fall in value of houses.

To buy a house you either need the money so thatyou can buy the house from the vendor, or youneed someone who can lend you the requiredamount. A mortgage is the most usual method ofborrowing money for a house. There are varioustypes of mortgage and you need to speak tospecialist mortgage consultants before decidingwhich is the best option. Remember that there arealways deals available, and it is definitely worthspending some time negotiating.


When you are looking at a house think carefullyabout what condition it is in. Will you have tospend money on decorating, carpets and otherfittings? What condition is the paintwork, windowframes, eaves, gutters, or the roof? A surveyor’sreport is designed to point out any serious defectswith the house, but they can miss things. Alwayscheck that the property you are interested in is notgoing to be in the vicinity of any new developmentssuch as a new road or supermarket. If relevantinformation of this nature is withheld from you itis an offence.

Buying a house is a seriouscommitment, so make sure

that you are ready forsuch a responsibility

When you have found your dream house the nextstage is the bargaining. If you have never been onefor haggling then this is the moment to start: youwill not get many opportunities like this. Theasking price for a house is usually set by the estateagents, and they will try to get as high a price asthey think they can get away with. In no instanceshould you accept the first asking price, as it willnormally be exaggerated. By offering a few


thousand pounds less you are effectively puttingthat sum of money into your own pocket if theoffer is accepted.

To aid you with your negotiation there are a fewthings that can help. Look at the price of similarhouses in the area, and compare this to the oneyou are interested in. The next stage is to make alist of all the repairs that need to be done to thehouse. This is useful ammunition when asking fora reduction in the price. You can say, for instance,that the wiring is in need of repair and wouldrequire ‘such and such amount’ to put right. Youcould also say that you have found a similar housethat has the extra benefit of an extension or a biggergarden but is the same price.

There is nearly always room for negotiation, butthere is one word of warning: if the house isgenerating a great deal of interest you might lose itto another buyer, so be careful. One last piece ofadvice is that if the owners are leaving behind anumber of fixtures and fittings make an offer onthese separately from the bid for the house. Youare in a strong bargaining position: remember thatmany of the items will be of little use to them, e.g.if they were to take the carpets it is unlikely theywould fit the new home they have bought, sobargain hard! It would be difficult not to savemoney under these circumstances.


Making use of your houseAlthough the emphasis of this book is on savingmoney and time why not earn yourself a little extracash? If you have a spare room in your house andwould be willing to share it with a stranger whynot consider taking in a lodger? There is always ademand for rooms, especially in towns and citiesand it can be quite lucrative. The extra money thatyou receive will often cover all your bills, leavingyou to spend your money on more pleasantsundries.

Before letting a room, decide what sort ofarrangement you are going to offer: will the lodgerhave access to all areas of the house, or will they beconfined to their room only? Will they have theirown cooking facilities, share the kitchen or beprovided with meals? It is worth gettingprofessional advice before taking in a lodger, and itis useful to know your rights as well as those of alodger. Finally, you might have to pay income taxon the earnings.

A similar alternative is to start offering bed andbreakfast. This is slightly more complicated as thereare certain rules and regulations that must beadhered to, regarding fire safety for example, butonce these setup costs have been covered it canprovide a useful source of extra income.


An Organised House

If you are already organised there will be no need foryou to read this section, but, for those who are not,read on. Those who are not sure should think aboutthe following questions.

• Do you know the location of your waterstopcocks, gas stopcocks, central heating feed tankand system drain point etc?

• Do you have spare fuse wire, lightbulbs etc?

• Do you have access to a torch (that has workingbatteries in it)?

• Do you pay your bills on time?

• Do you have access to the telephone numbers ofthe gas, electricity and water emergency services?

• Do you have access to the telephone numbers ofyour doctor, local hospital, police station, solicitor,plumber etc?

• Do you have a first aid box?

• Do you have tools for the most basic jobs,especially tools that might be needed in anemergency?

•Do you keep your receipts and know where yourguarantees are?

• Is your insurance still valid and do you haveadequate cover?


If you answered no to more than three of thosequestions then perhaps you should considerreorganising your household. An organised houseis an efficient, safe and more enjoyable place inwhich to live. If your house is organised, i.e. it iskept clean and tidy, it will save you time in thelong run. It can be difficult to keep a house tidy,especially if you have young children (or anychildren, for that matter). One tip for keeping thehouse free of junk, is to have a box which you keepby the stairs where you can chuck things in thatthey leave lying around. Then threaten them thatif any item stays in the box for more than threedays it will be sent either to a charity shop or putin the bin. This never fails to make them tidy up!

An organised house isusually a safe house

Repairs to the homeOwning a house is a responsibility that must betaken seriously. During the last few years there hasbeen a dramatic increase in do-it-yourself (DIY)stores, and this has obviously been accompaniedby an increased interest in DIY. There are nownumerous guides and manuals covering all aspectsof DIY: projects for novices and projects for themore ambitious. Whether you are planning on


changing a lightbulb or building your ownextension they are a vital aid for any DIY enthusiast.

If you own your own house it is wise to keep itregularly maintained. It is far better to do regularmaintenance rather than leaving it until there is alikelihood of serious damage being caused. Forinstance, if your window frames have started losingtheir paint and you ignore it year after year theywill eventually rot as they have no protection, andwill need replacing at great expense. But if you paintthem when they first start flaking you will saveyourself the expense of the new frames. There arehundreds of instances where people say ‘Oh I’ll fixit another day’, and then they end up regretting it.A classic example of this, although not related tohouses, is checking the oil in a car engine. I haveknown several people ruin their engines becausethey didn’t carry out this simple check. This islearning the hard way!

Here are some examples of areas that need to be keptan eye on:

RoofCheck for loose or missing tiles. If a tile is missingand water gets in, it can cause extensive damage tothe timbers, ceilings and wiring. So check regularly:this is one very important area that could end upcosting you a fortune if you don’t.


External woodwork• Check the condition of windows, eaves, andweather boards. Paint regularly and treat or replaceany rotting wood.

Walls• Check for cracks, bulges, damp and make furtherinvestigations if deemed necessary.

Trees• Prune large trees and make sure their roots arenot doing any damage to the surrounding property.

Drainage• Make sure all gutters and drains are kept clear.

Central heating• Have your central heating system regularlyserviced.

Chimney• Have your chimney swept (please don’t sendyour children up there, I believe it’s no longerallowed!).

A house that is regularly and well maintained isless likely to develop any problems becausehopefully they would be spotted before they getto be serious. This will definitely save you timeand money in the long run. For those people wholike to hope that it will never happen, think again,because if it does, there will be no one to blamebut yourself.


Doing your own household maintenance isgenerally a good idea. It can be rewarding whenyou manage to complete a job to a satisfactory level,and it can of course save you money. DIYenthusiasts are often regarded as a slightly oddbreed; this is perhaps a little unfair, though thereare of course those who are obsessive about DIYand are not happy unless they are engaged in sometype of project. There are limits to DIY and it isimportant that you don’t try to be too ambitious:you could end up either causing more problemsthan you had originally, or compromising safety.Enthusiasts should never take risks, there are fartoo many accidents that occur through lack of care.

When contemplating a DIY project there are anumber of points to consider:

• Do you have the knowledge and the capabilityto complete the project?


• Do you have the time to complete the project?It is no good starting on a project and then havingto leave it half finished for months due to a lack oftime.

• Do you have all the specialist tools that might berequired for the job?

One other consideration is that if the project youare thinking of undertaking is time consuming,would be it be more sensible to get someone else todo the job if your time could be spent moreefficiently doing something else? It is generally notworth taking time off work to carry out somethinglike decorating if you could be earning more moneyby working and paying someone else to do it andstill be better off.

There are certain jobs which are perfect for the eventhe most amateur DIY enthusiast, and by doingthese you will save a great deal of money.

• Painting, internal and external

• Wallpapering

• Tiling

• Fitting cupboards

The average DIY enthusiast can do these things,but for more challenging projects the help of theprofessionals is required. This unfortunately meansexpense. Depending on the requirement, there arespecialist trades, e.g. electricians for wiring jobs,


carpenters for fitting doors, etc. There is also thegeneral tradesman, the so called ‘jack of all trades,master of none’! Choosing a tradesman is not easy,and there are a few important rules that must beadhered to:

RecommendationsThis is often one of the best ways of choosing atradesman. You can find out from friends certaininformation about people they might have used. Itis a good idea to ask what they thought of thequality of the work done, did they stick to the priceagreed, did they make a mess or cause any damage,were they helpful and honest? By gettingrecommendations you should generally avoid anyfirms that are not up to scratch, although there arenever any guarantees that just because the peoplewere recommended to you they are going to bereliable.

Yellow Pages• There is normally a wide selection of tradespeople who advertise their services. However, youhave no way of knowing the standard of servicethey provide.

Shop windows• Many local shops have noticeboards which tradespeople use to advertise their services.


Trade organisations• They will normally have a list of approvedcontractors who are qualified to carry out workrelating to their profession.

Before contacting a tradesman work out exactlywhat your requirements are. Normally, the biggerthe business, the larger the job they will undertake.Bear this in mind when choosing a contractor. Alarge building company is unlikely to want to comeround and put up a couple of shelves, or if they dothey will charge you an exorbitant fee.

EstimatesWhen you have found a number of suitablecontractors, the next stage is to get them to giveyou an estimate for the proposed work. It isadvisable to get at least three estimates fromdifferent contractors. To help with the estimatekeep in mind the following guidelines:

• Write down what work you require.

• Specify which materials you want used.

• Make sure that you receive a written estimate,not a verbal one.

• Ask how long they will take to complete thework.

• Ask if there is a guarantee.

• Check when payment is required.


• Make sure there are no hidden extras such asequipment hire.

After you receive the various quotes, go throughthem comparing the prices and making sure thatthey are all quoting for the same materials andspecifications. You will normally find that therewill be one that is much more expensive thanaverage, one that is much lower than average andseveral that are reasonable. It is not as simple asautomatically choosing the one that gives thecheapest quote. If you know that the one who gaveyou the most expensive quote is a reputable andhighly recommended builder it is difficult to knowwhether to pay the extra in the knowledge thatyou are paying for quality, but on the other handthere might be nothing wrong with the otherbuilders and you might find that they are a lotcheaper. Try to find out some information aboutthe different companies if you have not alreadydone so.

Just remember that sometimes you do get what youpay for: anyone who remembers the chaos in theclassic Fawlty Towers episode where Basil employsa cheap builder instead of the more expensive onehis wife had told him to use will understand thispoint.

Who you choose is a personal decision, but bear inmind recommendations from other people. Manyfirms are successful due to their ‘name’ which is


held in high regard and therefore they are unlikelyto want to jeopardise this.

• Before you go ahead with your decision makesure you are totally clear about what is to be done.

• Read the estimate carefully checking all the smallprint. Make sure they are quoting for materials andlabour, not just one or the other.

• Check that they have given you prices for theproper materials you require, not inferior ones.

• Make sure the contractor has adequate insurance.

• Find out if they are going to remove any debriswhich is left on completion, or will it be yourresponsibility.

• Does the estimate include VAT? A small firmmight not be registered in which case it is notapplicable and therefore cheaper.

The estimate is not a legally binding contract: forthis you need a quote, which is much the same butit is legally binding. Never pay for the work inadvance, a certain amount is fair for the purchaseof materials, but if you pay all of it before theystart work you will be in a very weak position ifthere are any problems.


Always get at least twoestimates before choosing

a contractor

When the work is completed there are certainthings you must check, to make sure you are gettingwhat you paid for:

• Check that they have completed all the workthey were instructed to do, read through yourestimate so you know exactly what they weresupposed to have done.

• Check that the work is satisfactory, e.g. smoothplaster work, straight tiles, no leaks in newplumbing.

It is also important to check that they have usedthe materials that you have paid for. You mightfind that although you paid for a particular materialit does not necessarily mean that it was used. Thismight mean that you are entitled to some moneyback and an explanation. You are entitled to betold of any changes that are to be made, as it is nogood them informing you after they have alreadycarried out the changes.

If you are not happy with the workmanship thensay so. Far too many people are afraid to stand up


for themselves. Write down what you are unhappywith and say that you expect it to be put right, oryou will withhold the money you owe them.

Check for damage that may have occurred whilstbuilding work was being carried out. It is inevitablethat the odd scratch might appear here or there,but anything mildly serious should be noted and ifit requires repairing, send the bill to the builders.


Running Your Own Business

There has been a dramatic rise in the number ofpeople running their own businesses in the lastdecade, largely due to the changing employmentsituation. The eighties were a time of massunemployment, and for many the only prospectof work was through working for themselves.Although many were successful the failure rate wasvery high and many people ended up back on thedole in a worse position.

The failure rate has now begun to slow down, butrunning your business is never an easy option. Itnormally requires total commitment which mightmean working seven days a week and twelve hoursa day at first. Most businesses require a certainamount of capital investment: how much yourequire depends on the nature of the business. Theorigin of this capital is normally either savings,redundancy money, bank loans or even a secondmortgage, but whatever the source there is a lot tolose.

This book is designed to save you money and inline with that it must be stressed how importantthe planning stage is when considering starting yourown business. Not wishing to sound pessimistic,running your own business is not always asglamourous as the image you may have conjuredup. As was mentioned before, although the rate of


insolvency has declined since the late eighties it isstill a huge gamble and one of the easiest ways tolose money.

It is imperative that you investigate all the possiblepitfalls that might occur, and always be preparedfor the worst scenario, because it is likely to happen.Give some thought to what would happen if yourbusiness was to collapse: could you still providefor your family, would your home be at risk? Seekfinancial advice before you ever considerremortgaging your house to fund a business, in factit is essential to seek guidance to help you with allyour plans.

There are certain Enterprise Agencies that offer freeadvice to new businesses. They can offer a widerange of services and are normally run by retiredbusinessmen who have years of valuable experiencebehind the advice they give. If you are running yourown business and are unaware of the EnterpriseAgencies then contact your local Citizens’ AdviceBureau for more advice, as they could save you afortune and make the difference between yourbusiness being a success or a failure.

Running your own businessis a difficult option that

requires complete dedication


If you are considering starting up your own businessyou may be eligible for financial assistance. If youare currently unemployed and have an idea for abusiness there are a couple of options. Thegovernment operates the Enterprise Allowancescheme which offers a basic wage for the first year,though not much. At present it is about £40 a week,but every contribution helps. Another source ofhelp is from the Prince’s Youth Business Trust,though there are certain stringent conditions whichapply. You normally have to have beenunemployed but there are exceptions. You have tobe aged between 18 and 30 and have a reasonablebusiness proposition. The Trust offers advice,grants of up to £1500 and loans on favourable termsof up to £5000.

Other alternatives include applying for grants fromcharities. There are literally thousands of charitiesthat make grants to businesses every year. It isalways worth trying find out if your business mightbe eligible, as you have nothing to lose except theprice of a few stamps.

If you are already in business saving money isalways a prime objective along with making money.It is amazing to look at the difference between thepolicies of different companies, however. Somecompanies are so lax in their spending controls thatthey go out of business. If your business is growingit is a good idea to start off with fairly strict controls.


Many employees abuse expense accounts and rarelymake an effort to save money, usually because theyfeel there is no incentive for them to do so. If youare the boss then it is up to you to trim the fat.

Many companies lose thousands of pounds everyyear due to the misappropriation of simple itemssuch as stationery or just blatant wastage. Youmight think ‘what is the cost of a few pens andpaper?’ Well, if your company has only threeemployees the cost is probably not a great deal,but if your company was to grow to having ahundred employees then it would start adding upto a substantial amount. It can be hard trying tokeep a track of all expenditure, and one idea is tomake sure that your signature is required on anypurchases you are worried about.

Your business might be able to help you save yourmoney: if you do not use the services of anaccountant because you think your business is toosmall, think again. It is probably worth paying onea visit. There are many ways to pay less tax, and anaccountant can usually find a few loop holes to saveyou money. Utilisation of tax loopholes is notillegal, as opposed to tax evasion which is.

IndexAccounts 15Appliances 37

Banks 83Bills 17Borrowing 82Budgeting 11Buying a house 58Buying a new car 60Buying a second-hand car 63

Car Bills 69Car Sharing 60Central Heating 42Children 115Council Tax 126Current accounts 82

Direct Debit 20Discount Food Stores 32Dishwasher 37

Energy-Saving Lightbulbs 46Entertainment and Leisure

101Entitlements 122

Finance 79Fridges and freezers 39

Heat loss 49Holidays 104House and Building Insurance

90Houses 132

Improvement Grants 129Insurance 90Investments 87

Keeping Warm 47

Legal Aid 124Life Insurance 92Loans 83Loss leaders 32

Markets 34Mobile phones 78

Overdrafts 83

Party Games 117Personal pensions 93

Repairs to the home 137Running Your Own Business

148

Saver tips 28Security 95Social Security 122Standing Order 20Store finance 84

Telephones 75Tumble dryer 38

Wedding 109

Documents

How to Save Money