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Your Money > Family Finances Articles > Seven Ways To...
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By Laura Starkey
Last week's news that the CPI rate of inflation has hit 3.3% certainly wasn't good -- or surprising. However, some Fools may have been shocked that the measure was as low as 3.3%. For many, inflation feels far higher thanks to huge hikes in the cost of fuel, energy and food. A recent Fool.co.uk survey found that people estimated their personal inflation at an even steeper average of 9.7%! With little respite seemingly in store for the struggling public, and the consensus being that we need to batten down the hatches and plough through these difficult times, it's can be difficult to keep smiling. Fools' Gold Having said that, there are things you can do to help minimise the impact of inflation. The Fool is full of money saving know-how and brilliant budgeting ideas -- nuggets of knowledge that can be worth their weight in gold during dark economic days. Here, I've rounded up some of my favourite tips for beating the inflation beast. 1. Fight Rising Food Prices My top tip for saving on your food shopping is to buy your groceries online. I'm a fairly recent -- and very zealous -- convert. By using mySupermarket.com, you can make sure you're getting the best deal on your shopping basket. Also, you can cancel out the cost of delivery charges (and possibly save an extra few pounds) by using online voucher codes -- websites such as HotUKDeals.com regularly list them. Foolish writers Serena Cowdy and Malcolm Wheatley are full of further bright ideas for slashing the cost of your groceries. 2. Cut Your Travel Costs Driving more energy efficiently is a key way to cut costs. Removing weighty add-ons like roof racks will make a tank of petrol last longer, as will driving at a more constant speed and avoiding rapid acceleration and deceleration. When it's time to fill up, petrolprices.com is a useful website for finding the cheapest supplier of fuel in your area. As far as public transport is concerned, consider cost as well as convenience and try to plan ahead to get cheap tickets. For long journeys, a coach trip is often cheaper than taking the train. 3. Find A Better Bank If your current account is usually in credit -- but not held with a bank that gives you valuable credit interest -- you could be missing out on earning hundreds of pounds per year. Some banks pay a paltry 0.1% on balances, but Alliance & Leicester pays a storming 8.5% on its Premier Direct Current Account. Also, consider putting your savings in an inflation-busting account. With the cost of living growing, these are simple ways for Fools to make the most of their money. 4. Shop Smarter Many of us probably buy household goods and toiletries at the same time as we do our weekly shop -- but this isn't always the most cost-effective option. Items such as hayfever medication can be bought at knock-down prices online -- chemist-4-u.com and chemistdirect.co.uk are good places to try. Old faithfuls Wilkinsons and Superdrug are also worth a look for cleaning products and toiletries. Meanwhile, cosmetics and premium products are available online for less at sites such as StrawberryNET.com and BuyCosmetics.com. 5. Get Back What's Yours While you might have to wait a while to get your bank charges back, there's no reason not to put in your claim now. At the same time, why not think about getting back any extortionate credit card fees you've been charged? If you suspect you're in the wrong council tax band, you can ask your local authority to re-band you. If you're successful, you'll get back any excess tax you've paid. However, be aware that there is a risk involved in doing this -- before you act, make sure that your band is likely to move down and not up! For the small price of a little time and effort, you could get back hundreds of pounds by reclaiming what's rightfully yours -- a boon when times are tough. 6. Deal With Your Debts As my Foolish friend, Donna Werbner, reported a few months ago: this is not a good year to be in debt on credit cards. If you are, this is a good time to do something about it. Transferring what you owe to a 0% balance transfer credit card such as the Capital One Platinum Card, or a low cost lifetime balance transfer card like the new, market-leading MBNA Platinum Plus Card, could offer significant savings. As always, remember that you need to consider your credit rating before you apply for a credit card -- and don't forget that you should never spend on a card after transferring a balance to it. If you do, you'll be hit by the dreaded negative repayment hierarchy. 7. Switch And Save Finally, don't forget that the cost of heating and lighting your home looks set to continue rising this winter. As my colleague Neil Faulkner recently reported, costs could go up by a further 50%. Making sure that you're on the right energy tariff could save you hundreds of pounds a year, while fixing your tariff -- although it will be more expensive now -- could see you save money in the months to come. Words Of Wisdom Hopefully, some of these tips will see you save money, get hold of some extra cash -- and minimise the impact of inflation on your finances. Of course, there are probably many more hints and tips that other Fools find useful. If so, please do post them in the comment boxes below. By sharing the ways we help ourselves, we can also help each other. More: Inflation Means Rates Won't Fall Soon | Super Savings Accounts That Slaughter Inflation | Why We Should Worry About Inflation Useful links:
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