Exclusive new research by Which? Money has revealed five simple money-saving tips that can save you more than £1,300 a year, on average.
We’ve crunched the numbers for our favourite tips to reveal how much you can actually expect to save for each of them.
Read on for our list of ideas and a step-by-step guide explaining exactly what you need to do to maximise your savings.
Find out more: 50 ways to save money – see our all-inclusive list of tips
Haggle over your utility bills – save £499 a year
We surveyed over 4,000 Which? members about their experience of haggling in November 2016. Based on their responses, we calculated that you could save an average of £499 a year by haggling over five of your utility bills, as detailed below.
All it takes is a quick phone call to your provider – and you’re more likely than not to be successful. Some 88% of those who haggled over their car breakdown services managed to secure a better deal, as did 83% who negotiated the cost of their mobile phone contract.
Our advice guide includes tips to improve the odds of a successful negotiation and links to our field-tested scripts, so you know exactly what to say to secure that discount.
Use a cashback credit card – potential to earn £221.50 a year
Our September 2016 survey of cashback credit card users revealed that they spend an average of £1,080 a month.
This savvy bunch commit to spending on their credit card each month, but make sure they repay their balance in full to avoid interest and charges. We don’t recommend taking out a cashback credit card and maxing it out to get the most money back – you need to ensure you keep control of your spending.
But if you were to spend the average £1,080 a month, using the American Express Platinum Cashback Credit Card, you’d earn £246.50 cashback in the first year. Subtract the annual fee and that’s £221.50 profit.
Among the other most generous cards in the Which? Money Compare credit card tables are:
- American Express Platinum Everyday Credit Card, which would pay £197.20 in the first year.
- ASDA Cashback Plus Credit Card, which would pay £129.60 in the first year (more if you shop at ASDA).
The Which? Money Compare credit card tables let you search hundreds of cards from providers large and small to choose a great deal based on quality of service as well as cost and benefits.
Which? Money Compare table: cashback credit cards – our tables are updated daily
Use a supermarket loyalty card – save £29.12 a year
Supermarket loyalty cards offer customers a small chunk of their supermarket spending back in the form of points, which can be exchanged for vouchers.
The most commonly-used loyalty cards are the Tesco Clubcard and Sainsbury’s Nectar Card. Both cards reward users with one point per pound spent in-store.
Clubcard points are worth 1p worth of Tesco vouchers, while Nectar points can be exchanged for 0.5p worth of Sainsbury’s vouchers.
If you were to spend £56.80 a week (the average household spend on food and non-alcoholic drinks, according to the ONS) at the supermarket, you’d be rewarded with £29.12 worth of Clubcard points or £14.56 worth of Nectar points within a year.
Our advice guide explains how to boost the value of your supermarket loyalty points.
Cashback sites – earn £325 a year
Cashback sites, such as TopCashback or Quidco, pay you a cash reward when you click through from them to buy goods or financial products.
TopCashback told us their average user makes three transactions a week, banking an average of £325 a year in the process. The average Quidco member earns £305 a year.
Our advice guide explains how these websites work, flaws to watch out for and how to maximise your rewards.
Switch energy provider – save £263.73 a year
Switching your energy provider might not be at the forefront of your mind during the warm summer months when the heating isn’t on, but you can still cut your electricity costs by seeking out the most competitive deal.
People who switched with Which? Switch between 1 November 2016 and 30th April 2017 saved an average of £236.73 a year on their bills.
Which? Limited is an Introducer Appointed Representative of Which? Financial Services Limited, which is authorised and regulated by the Financial Conduct Authority (FRN 527029). Which? Mortgage Advisers and Which? Money Compare are trading names of Which? Financial Services Limited.