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How can I reduce my spending in 2023?

29th January 2023

Try this easy four-point plan to cut your costs and boost your budget for a healthier financial future.

The beginning of a new year is a great time to have a look at your finances.

January represents a fresh start, and a chance to make some sensible money resolutions to help navigate any financial ups and downs you may face.

Our guide to making a budget is here, but that new plan will be easier to stick to if you can reduce your spending at the same time.

Here are four ways to spend less in 2023.

Review your rates

Check the interest you are paying and receiving on all your accounts and shop around to make sure you are accessing the best and most up-to-date rates and deals.

That applies to everything from borrowing to saving for a rainy day, including credit cards and loans, finance and hire purchase agreements and bank accounts.

Once you know your existing rates, you can use online comparison tools to see if you could do better by switching to a more competitive product.

Before you make any changes, check to see how long any new rates will apply. Many products offer a better, introductory rate that will change over time.

And make sure to factor in any additional costs, such as early repayment fees on a loan, or a balance transfer fee on a 0% credit card.

If going through everything at once feels a bit too much, then make a note to check them one at a time when they come up for renewal.

Rethink the way you shop

The market for good quality, second hand goods has never been better - or easier to access.

Think about which items you really need to buy new and which could be bought for a cheaper price from a previous owner.

Do you really need the latest phone handset or will a slightly, older model do the job just as well? And if your old phone is still working perfectly at the end of your contract, then switching to a sim-only deal will be cheaper than upgrading your handset at the same time.

Could a refurbished laptop, gaming console or computer be an option for you or your family?

And check your local giveaway and sell and swap sites and social media pages - you may be surprised at what is available free or at a fraction of the cost of buying new.

Rent rather than buy

How often have you bought an expensive item, and used it a handful of times?

Perhaps it was an outfit for a wedding, or a drill to put up some shelves that is now gathering dust at the back of a cupboard.

Renting and sharing is becoming more and more popular, especially for high-value, low-use items.

Doing some DIY? Check social media pages and directories to see if you have a local tool library, where you can rent the things you need for an hourly or daily rate.

Likewise, before you splash out on a special dress or suit for a big event, check out hiring options close to you. You’ll be surprised at how many clothes rental apps there are - and some will also let you rent out clothes of your own to other people, so you can recoup some of the money you spent on that special party outfit.

Remove unused apps and subscriptions

A free trial or discounted offer can be a great way to try out new apps or subscriptions - but how many of us actually remember to review or cancel them?

Citizens Advice recently reported that forgetful Brits had spent half a billion pounds on forgotten or ‘rolled over’ subscriptions.

So it’s worth carrying out an audit - on your phone handset or by checking your bank statement - to see exactly what you’re paying for each month.

If you haven’t used a service for a while, cancel or pause it.

The same goes for TV and entertainment packages - make sure you’re not paying for channels or movies you never watch.

And if you do take up special introductory offers, make a note in your diary or calendar to remind you when it’s time to review or renew.

How TSB can help

TSB has a range of tools to help you make the most of your money and manage your finances.

If you want help planning ahead or dealing with challenges, our Money Confidence Experts are available by video call, in a branch or at our pop-up’s.

Find out more and book an appointment here.