People often worry about their finances in January following an expensive Christmas period. However, like last year, 2023 has brought with it additional challenges as the cost-of-living crisis continues to leave households strapped for cash.
As many will need to cut back on their spending to help make ends meet, Money Saving Expert (MSE) - founded by finance guru Martin Lewis - has shared 23 tips to save cash for 2023. The helpful advice was shared in the website's latest newsletter on Tuesday, January 3.
From securing cheaper broadband to saving hundreds on childcare, you're sure to find a handy hint that will help you balance your budget this year. Here are 10 of MSE's top 23 tips for 2023. For more great tips you can sign up for the weekly MSE newsletter here.
Read more: Eight million adults in UK are 'financially fragile' amid cost of living crisis
1. Are you married or in a civil partnership?
If this applies to you, you could be due £1,242, MSE states. This is because there may be a big tax break available.
To qualify, one must be a non-taxpayer (earning less than about £12,570 a year). The other must be a basic 20% taxpayer (earning about £12,570 to £50,270 a year). "Then the non-taxpayer can apply to shift 10% of their tax-free allowance to their spouse - worth £252 this year, and backdatable four years, adding an extra £990," MSE reads. You can apply at Gov.uk.
2. Earn 1% cashback on all 2023 spending
If you sign up for the Chase bank account app and use its debit card to pay you get 1% cashback on all normal daily spending for 12 months. It also has a near-top paying linked savings account and top debit card for spending overseas, according to MSE. To sign up, you don't need to switch bank and there's no hard credit check.
3. Is your household income less than £40,000?
You could be one of the seven million missing out on benefits. According to MSE, Martin's rule is that all households earning less than £40,000 should check. However, this doesn't necessarily mean you will get any.
4. 100,000s of free water-saving gadgets available - they help cut energy bills too.
Water firms hand out free water-saving gadgets, MSE states. This includes shower heads, tap inserts and winter insulation kits. You can quickly find out if there are any you can get at Save Water Save Money It is also worth checking if you should switch to a water meter? It can save some households hundreds per year.
5. Check if you can halve your broadband bill
According to MSE there are seven million households out of contract and massively overpaying. Many may be on older contracts and are paying £30 to £45/month for slow broadband. Using MSE's easy broadband comparison can help you find deals to save you £200+/year, at faster speeds. "To put that in context, you can get superfast fibre broadband for less than £19/month," MSE states.
6. Check if you qualify for special social broadband deals
There are four million people on universal credit or similar benefits who are eligible for this, but only a small proportion are on these special, long-lasting cheap deals. One Martin Lewis fan revealed how she saved £500 a year on broadband after one simple phone call.
7. Ditch and switch if your savings pay at least 2.85%
MSE states: "Rising savings rates were one of the few silver linings of 2022, yet in reality returns are still being dwarfed by inflation. So it's vital to minimise the erosion by ensuring you earn the best rate. For easy access, there is app-based Zopa's 2.86% AER, or for online, Coventry Building Society's 2.85% AER (max six free withdrawals a year, though rate rises to 3.25% on Fri, 6 Jan)." For people who want a big name, Nationwide's 2.5% AER is the top payer.`
8. You may be eligible for £2,000 to help with childcare
If you pay for childcare and work, or you're a couple that both work, then you may be eligible for Tax-Free Childcare. As part of the scheme, the government gives a 20% top-up, up to a maximum of £10,000. This means you get an extra £2,000 from the state. You can apply via Gov.uk. MSE recommends reading its Tax-free Childcare guide first.
9. Can you save £100s on car insurance?
Insurers are banned from charging existing customers more to renew than new customers, but savings are still possible by comparing and switching, MSE states. You can get more cost-of-living news and other story updates straight to your inbox from Wales Online by subscribing to our newsletters here.
10. Save on home insurance
MSE's key tips are:
- Diarise 21 days pre-renewal to compare as it can shave 20% off costs
- Use a few comparison sites as they search different firms, and have exclusives and their own perks
- Check Direct Line which isn't on comparison sites
READ NEXT:
- 12 ways you can save money in January if you're struggling post-Christmas
- Everything credit unions can do to help your finances and how to apply
- Town's new steakhouse could easily rival those in the big cities
- The man from a Welsh council estate now worth £400m thanks to an idea he had on his walk home
- People will get £900 cost of living support in three instalments this year
