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Saving and interest rates #thrifty

It seems likely that interest rates will rise in the near future but although that will probably mean higher mortgage rates it doesn’t always follow that savers will get a higher interest rate. Interest rates are at a historic low now but interest rates on credit and store cards are still high. Most people find it hard saving for a home and so a mortgage makes sense but for other things like a car, it is better to save to buy things that will depreciate in value. Lenders rely on our reluctance to wait for new things and so in developed countries a large part of people’s incomes goes in paying interest on loans of some kind.

Saving money

Car finance

Car finance can be expensive and so always check the interest rate and be aware that you can quite often get a dealer to reduce the price for cash. Dealers will offer a credit deal at 7% but the price of the car is often higher than the price they would take for cash. You can usually get something like 10% off the advertised price when offering cash.

Saving up

It is hard to save up to buy a car or anything else. Once you are in debt much of your income simply goes to paying off the debt. Savings mount up very quickly when you’re free of debt. Look around for bank accounts that will pay you to stay in credit or offer higher interest rates for regular savings. These are often for introductory period and a new application has to be made every 12 months.

Time is money

The saying time is money is true when it comes to shopping around. We can save by shopping around for our car insurance, home insurance, energy and telecommunication services but it takes time. Set aside some time each week for shopping around to save money. Shopping around for bargains is the same so try to find easy ways to do it. Become familiar with the discounters and a whizz at searching online. I buy expensive camera equipment and can usually save at least 10% by shopping around and I can save even more by buying from overseas.

Saving at Discount stores

I have a few local discount stores to choose from and they are all good for the basics like chicken and vegetables. Aldi has their super-six which includes vegetables like carrots, parsnips and onions that are in season and go together to make soups and stews.  The Asian supermarkets offer the same vegetables but often in larger quantities because they serve all the local takeaways and restaurants. Foods that are now selling in large quantities are the ones that tend to be discounted.

A rich country

The UK is a rich country but saving money is still popular because we have a lot of leisure time and leisurely pursuits always seem to be expensive. So look for value for money on days out and entertainment. Compare value for money. You might prefer the latest film which will cost you money to see but it is that impatience that costs you money. If you wait until it is shown on Freeview you can save money for other things where cutting the cost is more difficult such as holidays.

I’m having an evening out and don’t intend to spend any money except for the petrol to get there. Look at local notice boards and see what is on in you local area and you can find free places to go. Saving money is about getting the right  information.

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