Millennium Magazine_3rdEd

Preparing for the Financial Effects of Economic Uncertainty If you find yourself in just such a situation, you can take steps now to lessen the financial effects. • Make it a priority to reduce your overheads. Make sure you are getting the best possible deals with your utility providers by shopping around, comparing prices and tariffs. Most of this research can be carried out online these days, and, while it is still time- consuming, the benefits may well outweigh the time taken up.You may find that you can reduce your costs with each provider; even if the reductions are only slight, collectively, the savings will soon mount up. • If you have savings, check that you are earning the maximum possible interest on them. Many people stay with the same bank or financial institution for years and years, sometimes out of loyalty, but, more likely, because they don’t really have the time to find out about any others. • You may have credit or store cards that, of course, charge exorbitant rates of interest. If your savings are relatively healthy, it may be worth paying off as much of your debt as possible; this will reduce the amount of interest you pay. Having savings earning a lower rate of interest than that charged by, say, a credit card company, means that you are wasting money servicing that card.Alternatively, it may be possible to transfer an existing credit card liability to a different provider; many companies offer interest-free periods for the life of the transfer, sometimes even beyond. Many others charge a lower rate of interest altogether. • Take a look at your insurances; compare your existing policies and their benefits, with those of other providers. In many cases, you will be able to reduce your financial commitment. • Check other items of household expenditure.You may find that that gym membership you renew automatically each year isn’t worth it if you do not attend regularly. Cancel it, and find out if it is possible to claim for any unused period. • Start meal planning and carrying out inventories of food and other supplies to avoid overspending at the supermarket. Planning your menus a week in advance, and shopping only for the ingredients you need for that week, will automatically reduce your shopping bill.Try less expensive alternatives to the products you usually buy. Most supermarkets carry their own-label equivalents to branded items; in many cases, you’ll probably not notice the difference.This is called ‘down-shifting,’ replacing the item you would normally buy with one from the supermarket’s own range; it can result in very healthy savings. Other savings can be made by ensuring that you use up the entire contents of items like shampoo, toothpaste, and so on. It is all too easy to discard containers when they may still have a week’s worth of useable product left in them. • Start saving and planning early in the year for Christmas and birthdays. Check out the sales and store promotions for bargains, and put them away until the time comes to wrap them up. These are just a few ideas to try to reduce your spending. In the event of redundancy or unexpected spending, you know you will have done as much as possible to keep your overheads down. If your job situation becomes more secure, you will have developed the great habit of checking the cost of everything before you commit to it. Either way, you will be keeping more of your money to yourself. There are not many situations worse than facing uncertainties in today’s economic climate. Today, that threat hovers over many people; some of them will be able to take it in their stride, having savings they can fall back on, or their mortgages paid off. Others will be facing the prospect with genuine fear; fear for their families, their home, or their future.