In response to higher inflation, 74% said they made lifestyle cutbacks in 2023, with 40% having reduced their energy usage.
If you're wondering how to make your money go further in 2024, we've rounded up 12 tips to help cut your bills and boost your bank balance.
1. Shift your savings
Now is a good time to consider locking away some cash in a fixed-rate savings account to take advantage of higher interest rates.
Find out more:2. Haggle on your insurance
Rising insurance premiums have been piling pressure on already stretched household budgets.
The good news is it’s still possible to negotiate these prices down. Our survey of 1,992 car insurance customers found that among those who haggled with their provider at renewal, 51% managed to cut up to £40 from the price, while 12% saved more than £100.
Check comparison sites to see what prices competitors are offering, quote these to your current provider and tell it you’re willing to go elsewhere, unless it matches or betters a competitor’s offer.
If all else fails, you can ask to speak to their retentions department who may be able to offer you a better deal.
Find out more:3. Beef up your bank account
Switching your current account provider takes just seven working days and can quickly pay off. Some banks pay an upfront cash bonus for your business.
Just make sure the account you choose matches your needs. You should also weigh up whether a paid-for account could ultimately save you money.
Packaged accounts include extra benefits – typically travel insurance, car breakdown cover and mobile phone insurance – in exchange for a monthly fee.
They can be good value, if you make use of the benefits.
Find out more:4. Switch your energy tariff
With the price cap set to rise in January, a typical household’s energy bill will increase from £1,834 to £1,928.
However, you could end up paying more or less depending on your usage, as the cap only applies to unit rates, and not the overall amount you’re charged.
Take a reading on or close to 31 December so you don’t overpay for any energy used before the new cap takes effect.
After many months when the cheapest option was to stay on a variable tariff, some competitive fixed deals have now re-emerged.
When weighing these up, check the unit rates and compare them to the cap. Avoid fixing higher than the unit rates in your current deal or for longer than a year.
Find out more:5. Make money from your home
This allowance also covers other ways of making money from your home – for example, renting out your driveway or garage on sites such as JustPark and YourParkingSpace to drivers searching for a cheaper or guaranteed parking spot. You can register your space free of charge, and earn anything from £50 to £800 a month.
A potentially more lucrative – but more disruptive – option is to hire out your home as a film or TV set via websites such as Amazing Space. Bear in mind that bigger projects can take a long time, with crews unloading vans of equipment and dressing your home to their liking before the shoot even begins.
6. Boost your pension
If you’re yet to retire and are in line for a pay rise or bonus in the coming year, think about using this extra money to boost your pension contributions.
According to calculations by Standard Life, one-off pension contributions of £1,000 every five years could boost your pot by £23,000 in retirement.
Over the long term, moving your savings to a cheaper scheme can significantly boost the value of your pension: moving a £100,000 pot from a provider that charges 0.75% to one that charges 0.25% could leave you more than £17,000 better off after 20 years.
Find out more:7. Invest for less
When carrying out the next review of your investments, don’t forget to check what charges you’re paying.
For example, the most expensive fund tracking the UK’s stock market charges 1.06%, while the cheapest charges 0.05%.
According to AJ Bell, this could mean a difference of £1,800 in returns over a decade, based on a £10,000 investment. A £100,000 investment could get a £9,000 boost from switching to the lowest-cost trackers.
Find out more:8. Swap your grocery shop
Think twice before opting for convenience when grocery shopping: Which? research has found that if you bought a trolley of 75 items a week at Tesco Express, it would cost you over £800 more over the course of a year than if you'd shopped at a Tesco supermarket.
Opting for own-brand products over well-known names can help you cut costs further – and it doesn't necessarily mean compromising on taste. Aldi's own-label The Juice Company orange juice, for example, scored 77% in our taste test, beating Tropicana (73%), which is more than twice the price.
Find out more:9. Get cashback as you shop
Other reward credit cards will offer points based on your spending, often linked to particular retailers, which can be converted into vouchers. Bear in mind that both cashback and reward credit cards typically charge an annual fee, so you'll need to spend on it regularly to be able to offset this.
Find out more:10. Check if you’re eligible for any benefits
Many state benefits and discounts aren't granted automatically, meaning you could be missing out. For example, latest figures show that just six in 10 people who are eligible for pension credit claimed it last year.
Find out more:11. Claim tax relief
Tax relief allows you to deduct some payments you make during the tax year from your gross income, so there's less for you to be taxed on.
For example, if you're self-employed, you're able to claim expenses on things you have to pay for in order to run your business – from office supplies to costs for running a business premises or facilities for working from home.
If you’re married or in a civil partnership and on a low household income, you could be eligible for marriage allowance. To qualify, one partner must be a basic-rate taxpayer, and the other must have an income below the personal allowance (£12,570). Effectively, £1,260 of the lower earning partner’s personal allowance is transferred to the higher earner.
Find out more:12. Apply for a broadband social tariff
Social tariffs are special discounted deals available for certain low-income customers. They're generally cheaper than typical broadband tariffs, starting at just £12 per month. They also usually aren't subject to price rises or exit fees.
Our research has shown that moving to a social tariff could save the average customer £250 a year if they're eligible.
You're likely to be eligible for a social tariff if you receive a means-tested state benefit, such as universal credit, pension credit or legacy equivalents.
Find out more:source https://www.which.co.uk/news/article/12-ways-to-make-and-save-money-in-2024-aiSgi0a8JYqt