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In this economic downturn, it may be too big an ask for some contractors to replace the luxury of pricy caviar for cheap but filling crackers, especially if they like pizza. That’s because upmarket eatery Mulberry Street in Notting Hill now sprinkles the rare fish eggs over a 20-inch dough base for a cool £350; credit crunch, what credit crunch? Out of their daily pay, the average contractor, kind and ever PR-conscious, will tip the waiter with any change. Fine, as long as the contractor is willing to tighten their belt elsewhere: Unlock a 25% pay rise The average person in the UK is living without a 25% pay rise that they deny themselves through not stopping waste, according to MoneySavingExpert.com. This 25% isn’t achieved by cutting out the caviar, but rather by systematically working through all bills and products to ensure you have the best price, or nearly best price, on everything. Thanks to price comparison sites, this is a much quicker process than it was when your Dad once told you the same. Now it’s do-able in a matter of clicks. If you’re more the face-to-face type, and you have big financial plans, walk into a Barclays for a professional review of all your finances to automatically qualify for a chance to win £10,000. Current, and with interest Switch to interest bearing current accounts and move ongoing balances to deposit accounts. At the time of writing, Alliance and Leicester had the highest credit interest rate, according to USwitch.com, at 8.50%. A&L also came top at the Moneyfacts Awards 2008, followed by Halifax and Norwich & Peterborough BS. At the awards, NatWest Mortgage Services was the best current account and offset mortgage provider . Save Headline rates on savings accounts are attractive right now, and more than 100 accounts on the market offer extra bonuses as part of the offer. But check comparison sites after a few months because what you earn gets less attractive. Independent financial advisor Tony Harris says savers should explore fixed rate bonds ahead of further potential interest rate cuts. For business savers, the banks are being even more persistent to get customers in the door; purely for their capital. Harris advises shopping around for deposit rates even if the cheque account remains on the high street. Plastic Currently, there are much fewer options with credit cards but 0% interest deals are still available. Some credit card freebies, such as flights, may stand out to the jobbing contractor but the small print should be combed for annual charges. The biggest factor for roaming contractors to watch out for when using their card abroad is the exchange rate, but some cards specialise in overseas use, meaning a handy trim to holiday spend of 6%. If you owe lots on credit cards and have a personal loan or to, save by switching to cheaper cards or refinance your debts with a more economical consolidation loan. The Vault In line with best-practice advice for freelancers before the downturn, build up a buffer against any future slowdown at work. Given the unpredictability of market pay fluctuations, also explore flexible mortgages that allow over/underpayments and payment holidays. For the buffer, use a cash ISA to take advantage of tax- free interest. Invest up to £3,600 in a cash ISA, and choose stocks/shares to make up your remaining allowance of £7,200. If you had made full use of your ISA since they came in in1999, today you will have £72,000 sheltered from the taxman. Barclays was the top cash ISA at Moneyfacts Awards ‘08, followed by National Counties BS, and National Savings Investments. Remortgages Borrowers with mortgage schemes due to end in the next four or five months who have relatively little equity in their property could benefit from looking at options now; rather than waiting for a further tightening in lending criteria. Although planning is crucial, the criteria to secure the best deal are today what you might expect pre- credit crunch: have a healthy deposit, good credit history and good financial prospects. Sound prospects are key: Moneyfacts reports that mortgage rates are higher now than they were two years ago, with the average fixed rate reaching 7.02% on June 24, 2008. If your current mortgage rate increases by an uncomfortable margin, consider extending the term temporarily to reduce monthly payments. Cut the kilojoules Yesterday, the nation’s energy captains warned householders that their gas and electricity bills may rise by as much as 40%. Some providers are pledging ‘fixed energy prices’ to new customers until next year. Save money and go green by visiting one of the many comparison sites, such as theenergyshop.com, to check you’re getting the best deal. Consumers still stuck for choice about the greenest and cheapest energy provider can call consumer watchdog Which?, which offers a free-phone service about switching supplier on 0800 533 011. Other consumers will be happy just to rely on energy monitoring devices like the IntelliPanel, which automatically powers off all PC peripherals once the computer is shut down. Other well-intended devices, including those available from EON or Efergy, show consumers how much energy they are consuming, in KW as well as pence. Businesses concerned about their energy consumption should get the Carbon Trust on their case, or convince their colleagues about the problem, and the potential savings, by using the group’s online tool to measures the size of their outfit’s carbon footprint. Fill her up, well; half way at least Shop around for fuel. Petrolprices.com is free to use and will give you the cheapest stations in your area. The cost of petrol has risen by 18p a litre over the last year, making a car-sharing scheme with your work colleagues hard to refuse. National car- sharing schemes are also available through sites like liftshare.com. Unnecessary travel is now widely frowned upon, so don’t bother unless its via public transport or your legs of course! High speed, and at a high cost? If it was more than 12 months ago that you signed up with your broadband provider, then you are probably paying up to 50% too much. Use comparison sites to see each provider’s prices, ‘up to’ speeds, technical support and customer satisfaction ratings. Compare the results with ‘bundle’ deals, which include home phone, TV and broadband supply for one price. Pick up a rag National (and local) newspapers contain an array of special offers, vouchers and big discounts, often obtainable just by stating the paper’s name or cutting out the promo. For example, mention [the Daily] “Telegraph” to Kwik-Fit staff (before August 31) and get 25% off a new set of tyres. Other nationals have published vouchers for hotels in all major cities, typically offering three nights for the price of two. Websites likes myvouchers.co.uk also offer a range of useful discounts, ranging from reductions on digital cameras, to £50 off easyJet flights. Recycle unwanted handsets According to MoneySavingExpert.com , there are an estimated 90million unwanted mobile phone handsets collecting dust in UK homes. Through the website, you can do your bit for the environment while earning a quid or two; prices per used handset range from £20 to £150 for some latest models. Open your doors to the cameras Even if your two-bed in Hull is unlikely to grace the cover of Ideal Homes, it doesn’t mean film-makers won’t pay premiums to use it as a backdrop to their production. TV and film websites, such as www.film-locations.co.uk, regularly list the styles of properties that crew want for a shoot, sometimes with clues about how much they’re willing to pay. Rates for a photo shoot tend to be half that of a film shoot, which can earn nicely at around £1,800. Rich pickings In tough times, scammers come out in force to prey on people’s hopes that there is a flick-switch that nobody else has seen for instant wealth and luxury, so beware. As before the credit crunch, if a scheme or deal seems too good to be true; then you’re probably being had. Regulated lotteries, like Euro Millions where there is one in 24 chance of winning a cash prize, seem a safer option for cash cravers. The chancer of the moment, however, is probably more interested in Wimbledon – where a bet that between 70,001 and 90,000 punnets of strawberries will be sold offers odds at 2-1. Outside odds at 8-1 reportedly go for 50,000 punnets, according to PaddyPower.com . Others searching for that elusive windfall can try tax-free prizes – from £50 to £1million each month - in the form of Premium Bonds, which have grown in popularity over past six years, with £27bn having been invested by 23m people. Expensive habit? Smokers who quit buying a 20-pack of fags a day this time a year ago would now be £3,108 better off. Due to the increased health risks from smoking, most life assurance companies charge smokers over 50% more than they charge non-smokers. Smokers who’ve quit should ask their life assurance company to re-evaluate their original policy and charge them the cheaper ‘non-smoker’ rate once they pass the qualifying period. Jun 26, 2008 Email this article Printer friendly page Previous Page
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