Avoid the cashflow crunch
WE are all nursing a headache right now. A thumping financial one. Maybe some people are feeling the strain more than others, but rest assured it’s there – and it’s only set to get worse. “There is definitely a credit crunch right now,” admits David Rankin, assistant director of financial services at Bell Lawrie. “Everything is so volatile and so, it’s important to be really switched on now.”Easily available credit and low introductory interest rates have turned us into a nation of binge debtors, while volatile international markets have impacted upon mortgages and lending. A survey by ClearDebt earlier this year revealed that around eight in ten women in their 20s spend more than they earn, and around half owed an average of £3830 on credit cards alone. In short, everyone’s now skint.
“In reality at the moment you just want to stop spending and start saving,” says David. “Stay put with mortgages and accounts. Short-term saving in secure accounts with instant access is key.”But you can beat the credit crunch, and enjoy summer living – on the cheap. So here’s how to become a canny consumer – by both saving and making money.
THAT LAST MINUTE HOLIDAY which can save £500
“There are still bargains out there and a lot of last-minute good deals,” says Tommy Graham, manager of Sphere Travel on MontgomeryStreet. “The best deals are mainly outside the July school holidays, and throughout June there’s fantastic deals – you can pay £199 for a week in the sun in Majorca or mainland Spain.”Or simply stay in the UK and make the most of the predicted hot summer.
RECESSION DRESSING to pocket £100 a month
As the crestfallen economy pinches harder, less will become more with volume of clothes we buy and the fashion we choose to wear. So it’s time to get savvy.Vogue fashion expert Pippa Holt says: “Re-examine your wardrobe and be positive about it. Spend a Saturday going through the basics you bought years ago, such as a tailored jacket, pencil skirt and manly trousers. You’ll fall in love with them again.”And then start scouting for bargains. But Edinburgh fashion stylist Laura Wilton warns. “Be careful what you buy as certain cheap clothes are a false economy – often it pays to spend that little bit more. Look at the seams, the fabric, the cut. It has to be perfect to be worth it.”
QUIT THE GYM and save £80 a month
If you have a gym membership you just don’t use, then it’s time to stop pumping money and start saving. Gym memberships cost from £40-£80 a month, so why not invest in an iPod shuffle for £40 and go for a jog instead?“It’s easy to exercise outdoors and build core and muscle definition at home – keeping fit doesn’t have to mean time spent at the gym,” admits Edinburgh personal trainer, Gareth Jones.
SAVE THE PENNIES and clock up £50 a month
It’s simple: stop spending when you really can’t afford it. That Starbucks £2.05 cafe latte you call your afternoon treat every working day costs a staggering £512 a year, while those two £2 weekly celebrity magazines total £208 a year. As the old adage goes, ‘Look after the pennies and the pounds will look after themselves’.
