Pennysitter

How to haggle

2013-04-13T10:11:00.001-07:00

With British businesses desperate to get some cash into the tills and more willing than ever to compromise, you can save a lot of money with a bit of crafty negotiation.

This article looks at how to negotiate down the prices of products and services so that you can get what you want at (or at least closer to) the price you want it.

Why haggle?

The first thing you should know about haggling is this: the worst that can happen is they say no. You have everything to gain and nothing to lose, so why not give it a shot with the tips below and see what you can save?

Haggling is not rude and the result of it is that high-street stores may find themselves with cash in the till that would otherwise have gone to an online seller. Haggling can also be an exciting experience for both you as the potential customer and even for the sales person in question.

When to haggle

As a general rule, haggling should be reserved for big ticket items (£50 or more) or collections of items amounting to more than £100 together. You may be able to get a pretty penny knocked off your new TV, but don't expect to be haggling down your grocery shopping bills.

Most stores work toward monthly and annual sales targets; as they reach the end of the business month (which, it should be noted, will not necessarily be the same as the calendar month) they will be keen to make as many sales as possible, even if this means reducing their profit margins to do so. This is where you come in: by haggling at this time, sales staff are more likely to be flexible if the carrot of boosting their sales stats is dangled before them.

Haggling is most successful when a store is quiet. If the place is already buzzing with customers who, in more cases than not, are willing to pay the full ticket prices, staff may not be as open to negotiation.

Remember, also, that cash is king, with debit card payments coming a close second. If you're able to pay in this way then you will have placed yourself in a much stronger negotiating position.

Starting negotiations

When you're haggling it's important to remember that you should be negotiating, not arguing; smile, be polite, make a witty remark or two, and otherwise make yourself appear likable.

Starting things off can be daunting for most of us, so take a look at some of the stock phrases below that will help you to get the money-saving ball rolling:

"What's the best deal you can do me on this?"
"I like it, but I don't like the price. Can you do anything about that for me?"
"I like this, but I was looking at only spending £X (20% lower than you're actually happy to pay since you'll likely have to negotiate upwards or meet them in the middle)"

Remember, smile!

Useful phrases

If the salesperson has made an offer to you that is lower than the ticket price, that means negotiations are underway. You could accept that price if you wanted to and save a little bit, but why stop there when they've already proven a willingness to be flexible?

"Oh go on, you know want to do better than that."
"I like even/odd numbers: shall we call it £X?"
"Knock another £X off and we can shake on it right now."
"And will you throw in 'free delivery' OR 'an extended warranty' OR a specific related accessory?"

You can use any combination of these to try and get a better deal. Just be careful to remember the last offer that was made and be vigilant that, if you choose to accept it, they actually provide.

What happens next?

The sales person might offer you the price you want, in which case it's usually appropriate to seal the deal with a smile and a firm handshake. Inexperienced staff or those with limited discounting authority might offer to call a supervisor or assistant manager to speak to you: it's usually worth accepting this offer ("If you could that would be great, thank you.")

If you do get to speak to the manager, just greet them politely, explain what's happened so far in negotiations and keep on haggling.

General haggling tips

· Going equipped with quotes from other businesses, either from the high-street or online, is a good way to bolster negotiations and spark some good old fashioned competitiveness that may well see you better off.

Show that you're interested in a product and serious about buying it by asking a few relevant questions about it (even if you know the answer already), but don't appear too desperate.
Be realistic in your expectations. Don't expect to save more than around 40%, even if you're a haggling wizard.
Many sales professionals try to use silence as a negotiation technique: their hope is that you will feel anxious to fill that silence with acceptance. Instead, try to hold your nerve. Smile politely, let the silence linger for a few seconds, then push for a better deal.
Don't be afraid to walk away if you don't get an attractive deal. If a store is unwilling to compromise on price at all, it is usually a good idea to leave simply on principle. There are plenty of other stores, both on and offline, who would be happy for your custom.

Conclusion

A few minutes of friendly negotiation with a salesman could not only bag you massive discounts but also give you a profound sense of achievement and self empowerment. It's not illegal, so the worst that they can do is say 'no'.

In a Which? study, researchers were sent to 27 retailers to haggle for a digital camera. When presented with a competitive online quote, all of them offered at least some discount, and many offered to match or even better the price.

You won't know until you try!

Choosing the right products

2013-01-25T11:23:00.001-08:00

With almost everyone tightening their belts, it's important to think carefully about the products we buy and be sure that they will serve us well, while at the same time getting the best value for money.

Whether you're looking to buy a new toaster or a new television, this article is for you.

Think about what you need
While it's tempting to immediately set our sights on the latest and greatest all-singing-all-dancing super gadgets, it is important to think about what you need a product to do. Is there any point in buying a six slice toaster if everyone wakes up at different times? Do you need your TV to be able to access the internet? Do you need a computer powerful enough to manage the Hadron Collider just to send emails?

The way to save money when choosing a product is to resist vanity. If you find yourself picking out a TV just because 'it's bigger than Mrs. Green's next door', you're likely to spend much more money than you really ought to.

Read reviews
Unless the product you're thinking of buying is fresh off the ship, there will be other consumers who have 'been there and done that'. It usually isn't difficult to tell which reviews are worth taking notice of, and you are likely to find a wealth of information that isn't included in the manufacturer's specifications.

Beware false economy
In consumer terms, 'false economy' occurs when something appears at first instance to offer excellent value for money, but subsequently fails to deliver on performance or simply does not last as long as expected. The result is that we then have to buy further products or costly repairs to make up for the defects of our original purchase.

It is an old adage that 'you get what you pay for'. While this is still sometimes true, it doesn't always mean that expensive products have a guarantee of quality, nor that cheaper products aren't worth a look. Indeed, there are many cheaper products that perform and last just as well - if not better - than their expensive brand counterparts.

Whenever you are buying something for over £50, it is worth taking the time to see what is available on the market and reading reviews. Do not rely on what a sales person tells you as this information is, by its very nature, likely to be biased.

Conclusion
The 'right product' is probably not the most expensive, nor is it likely to be the cheapest. Think hard about what you need a product to do, listen to what other customers have to say, and don't let vanity get a word in. Not only can you save money in this way, you will have invested in products that will serve and last you well.

The return of Christmas

2013-01-11T14:12:00.000-08:00

With Christmas only weeks behind us, it seems almost inconceivable that it will ever return - or at least that it's much too far away for us to care.

Throughout January, Christmas stock is being sold at massive discounts everywhere. With foreseeable price rises to emerge throughout the coming year, there will never be a better time to prepare for Christmas 2013.

Deck the halls
Now that Christmas is over, most stores are terrified by the prospect of seasonal items sitting in their warehouses for another year: almost immediately after Christmas, stores begin to slap heavy discounts anywhere from 50-90% on anything that's even remotely Christmas related.

While its easy to feel drained of Christmas spirit (or perhaps a little tender from too much of it), it really is worth buying any decorations, lights, gift bags, wrapping paper, and cards now and store them away yourself until next Christmas. When you consider the predictable effect of inflation on top of the discount you receive in store, you'll be saving well over 50% on items that you would need to buy sooner or later anyway.

January sales
Throughout January there are bargains to be had both on the high street and online. With a little searching, it is possible to save yourself a lot of money. The key, however, is to think about what an item is worth to you and whether you would actually make use of it.

If you can't justify spending money on yourself over January, consider buying gifts for birthdays and the Christmas to come. Just be sure that whatever you buy will last long enough - that delicious looking box of chocolates might not look so appealing after another eleven months!

Tightening the purse strings
There's no denying that Christmas, and indeed winter in general, is the most expensive time of the year. If you have children, especially, it's likely that your January bank statements will seem less than festive.

If you feel that you're in need of help, it is worth paying a visit to your local Citizens' Advice Bureau (CAB). Most CABs have specialist money advisers who are able to provide financial advice and support for debts. Furthermore, all of the CABs services are free of charge regardless of your income.

Heating and powering your home has never been more expensive and it's likely that most households will feel the strain over the winter period. Check out the articles on how to save money on your gas and electricity bills so you don't end up, literally, out in the cold.

If you've taken any loans or bought gifts on credit, it is imperative that money is put aside to cover these expenses. If payments are missed, you could find that your repayments and fees skyrocket uncontrollably.

If you've received any unwanted Christmas presents, you could attempt to return them to the store (if you've been given a gift receipt), or you could sell them on eBay or the like. Even if you do like a gift you're given, it's worth considering whether the need for money is more pressing.

You will find general advice on cutting back and saving money throughout this website, so head on to the site map for more tips and tricks.

Start a Christmas fund
Christmas becomes more expensive every year, but you can take out some of the strain by saving a little bit each week. With 50 weeks remaining to next Christmas, just £1 a week would mean having an extra £50 + interest to play with when it rolls around.
There are a number of companies who operate gift funds, but you will never receive the value that you put in and - in some cases - you may find yourself seriously out of pocket if the company goes belly-up as one company famously did just a few years ago.

There is a way that you can cut out the middle man: just open a savings account. The rest is all about discipline and reminding yourself to pay into the fund every week, or at least once a month. How much you pay in is entirely up to you, but be sensible: don't pay in so little that it is practically pointless, but at the same time don't pay so much in that you'll be tempted or required to dip into your savings early.

Conclusion
While you might not be feeling the festivity anymore and next Christmas may seem like a long way off, you can save on a lot of money and undue stress by preparing for it now.

Finding cheaper car insurance

2012-12-01T11:50:00.001-08:00

Finding the right car insurance at the right price can always be a bit of a trial, but help is at hand!

Pennysitter welcomes its first contributor, Agent Orange. He is an insurance representative by trade, and we're sure that his tips and insider knowledge will go a long way in helping you to find the right insurance for your vehicle.

Why do I need to insure my vehicle?

Since 1930 it has been a legal requirement that all road users carry insurance on any vehicle that is used on a public highway, which includes the driveway outside your house. Unless your vehicle has been declared SORN (Statutory Off Road Notification) then it must have a valid insurance policy.

The problem is that in today’s saturated market it can often be both difficult and confusing to select the right insurance product. In this article you'll find some considerations to bear in mind when you’re doing the annual trawl through the many insurance providers out there.

Is price the only consideration?

No doubt we’ve all seen the advertisements for the many comparison websites offering us everything from nectar points to meerkats; these are simply gimmicks to try to get you to use that particular service. It is also important to note that not all insurance companies are actually linked to these comparison sites, so don’t get sucked in by the promise of a stuffed toy straight away - do your own research too!

The comparison websites are a useful point of reference and the first port of call for anyone looking for a bargain; however, some of the 'cheaper' options may not be giving you the cover that you might expect or presume. For example, it is important to note that 'comprehensive cover' is a generic term, and one company's 'comprehensive' cover will often differ considerably from that of another.

Buyer beware, some companies will not necessarily cover you for every eventuality - i.e. vandalism, using your vehicle abroad or for driving other vehicles, etc. Be thorough in your research!

Essentially, car insurance is a product – and like any other product, you will usually get what you pay for: the cheapest cover may not necessarily be the best cover. You will only ever know how good your insurer is when you have to make a claim, so it is important to consider the following:

is the company based in the UK?
does it have UK call centres?
does it actually have a customer helpline, or is it all web-based?

What are the options?

The following explanations are intended to give you a basic overview only,

Third Party Only (TPO) – this is the minimum level of cover you can expect to be offered by most insurance companies, and also the minimum level of cover that is presently required by law. It essentially means that in the event of an accident, your provider will indemnify any third parties (people or entities other than yourself) who sustain damage or injury as the result of an accident you have caused.

Third Party Fire and Theft (TPFT) – this offers you the same cover as TPO, but in addition you will be indemnified for any damage caused as the result of a fire or theft of your vehicle.

Comprehensive – often referred to as ‘fully-comp’. This is the highest level of cover that you would expect to be offered by the majority of insurers in the UK. It provides the same cover as TPFT, but often fully indemnifies you for any damage sustained to your own vehicle after an accident for which you are either fully or partially at fault.

What if I’m not happy with my renewal quote?

If you are keen to stay with your current insurer, but are not happy with your renewal quote, don't panic. You can always go to their website (or use a comparison website - if they feature on one - note that Direct Line do not) and enter your details as a new customer.

Why do this? One of the main marketing tools used by insurance providers is to offer new customers a discounted rate or certain ancillary products free for the first year. 9 times out of 10 you will find that if you approach your existing insurer as a new customer you often get a cheaper quote than you were offered as an existing customer. As Penny always says: you don't get anything unless you ask for it.

But I’ve been a loyal customer in the past!

Sadly the concept of ‘loyalty’ is not always given as much weight as it may have had in the past, and this is mainly due to prevailing market conditions. This may leave a bitter taste in your mouth, but don’t take it personally – insurance companies (like most other businesses) change not only their ratings, but also their customer target groups on a regular basis. This, coupled with the fact that the insurance premiums of any given provider will also be dictated by how much they’ve had to shell out on claims in the last twelve months means that prices are never guaranteed to actually go down year on year, irrespective of whether you’ve made a claim or not!

How else can I reduce my premium?
Are you living with a spouse or partner? If so, are they named on your policy as an additional driver? If not, why not? Many companies will give you a discounted premium if you add your other half to your policy as a second driver. Why? Because you are, in effect, sharing the risk and, therefore, you'll often get a discounted rate. This can, however, backfire in the event of a separation.

Check your mileage! Many people don't provide accurate estimated annual mileage information to their insurers. Mileage is considered when calculating insurance premiums: if, for example, you travel 20k miles per year, your risk factor is higher than someone travelling 5k per year and your premium will reflect this. Rather than guesstimate, always check your service booklet annually.

Remember your duty of disclosure: it is important that information is both accurate AND kept up to date. Though it may hurt you financially in the short term, failing to declare things like endorsements on your license or past claims can invalidate your insurance policy entirely!

Further tips...

Always keep a record of your No Claims Discount (NCD). This is important for two reasons:

It is perhaps the most significant piece of information you can provide an insurer when obtaining a quote. A good no claims history tells the insurer that you’re (potentially) low risk, and this will likely be reflected in their quotes. It goes without saying that the higher your NCD is (in years), the lower the quote should be.
Insurance companies are not consistent in the way they record NCD. Some may limit the amount of years you can have (i.e. to 5 years or 9 years); others may show it as a percentage. Always ask for your proof of NCD from every insurer you use at the end of a policy so you have definitive proof, (as whenever you join a new insurance company you will have to provide proof of NCD to them).

Finally, don’t forget that car insurance is subjective (i.e. the details you provide an insurance provider will dictate the price of your premium), so it goes without saying that it’s important that you get a policy which provides the cover that suits YOU and meets your particular needs: if your premium differs from that of another person, despite being similar on face value, there may be slight differences in their respective details to those of your own which may have had an effect on their premium or vice-versa. For this reason, it can often be misleading to compare your policy (or the price of your policy) with other people.

Conclusion
There you have it. When it comes time to renew your car insurance, use these tips and you could save a bundle! Thank you Agent Orange, your identity is safe with us.

Improvised insurance

2012-11-01T10:55:00.002-07:00

Insurance policies are an expensive way of giving yourself peace of mind for when a rainy day rolls around.

It's often the case that you won't need to make a claim. Even if you do need to claim, you may have to pay a large excess charge and your premiums will likely be increased. After all, if insurance companies didn't make more money than they paid out, they wouldn't last for very long!

In this article we will be looking at improvised insurance: a way of giving yourself some peace of mind while cutting out the insurance companies.

What is it?
'Improvised insurance' is a role playing exercise as much as anything else. It means opening a separate bank account - preferably a high interest online savings account or an ISA - and then setting up a standing order to pay regular payments or 'premiums' into it. The difference is that instead of the money going to an insurance company, the money stays under your control.

What's important to remember is that insurance companies make money because the premiums and excess charges they make outweighs the claims that are made against them. Of course, this is not always true for individuals.

Improvised insurance offers a sort of half-way-house to those who would like some peace of mind but are skeptical about traditional forms of insurance - especially where traditional insurance can be disproportionately expensive and excess charges make it impractical to make small claims.

Be aware that, depending on your circumstances, there are types of insurance that you are legally required to hold such as third-party car insurance and professional indemnity insurance.

How to set it up
The first step is to open a separate bank account into which your 'insurance premiums' will be paid. Preferably this will be a high interest online savings account (so the value of your premiums continue to rise) or an ISA (so what interest you make will not be subject to tax deductions).

The second step is to decide on your 'premiums'. While you have the freedom to set this figure at whatever you wish, it is a good idea to seek quotes from genuine insurance providers and match their quotes: this is because the quotes an insurance company provides is calculated by carefully weighing your risks.

Once you have decided on how much you are prepared to pay, set up a direct debit/standing order to your new account. Most banks will offer to do this weekly, fortnightly or monthly, so you can decide which option is best for your cash-flow. Setting up this automatic payment means you don't have to worry about forgetting to make payments, and you can let your improvised insurance cover stack up invisibly: you may be surprised by how quickly your premiums will add up!

Advantages
There are a number of advantages that improvised insurance has over dealing with traditional insurance companies:

If you have a claim, the money you've saved is immediately available without investigations and lengthy delays.
You have to freedom to decide the amount and frequency of your payments (though it's advised that you set this to a reasonable figure based on actual quotes).
The money will always be yours, whether or not you need to make a 'claim'. If you decide to cancel your improvised insurance, or it's no longer necessary, you won't have lost a penny of what you paid into it and you would gain from the interest that will have accrued.
The cost of your premiums will never increase unless you want them to.
You can make a 'claim' for anything that needs to be done: there are no fine print setting out what is or is not covered.
There are no excess charges, technically speaking.

Disadvantages
There are also a number of disadvantages that improvised insurance has over dealing with traditional insurance companies:

You will only have the amount of 'cover' that your premiums have reached. If you needed to make an exceptionally large claim, you would be out of luck.
Because the 'premiums' and the account itself will always be under your control, a degree of self discipline is required so that the premiums continue to be paid and that the insurance money remains untouched except for in a genuine emergency.
Certain means tested benefits have savings limits, which may render improvised insurance less suitable than traditional forms.

Conclusions
Improvised insurance strikes a fair balance of advantages and disadvantages which makes it a reasonable half-way-house between not being covered at all, and buying traditional forms of insurance. If you've been stung by insurance before but are still keen to have some peace of mind, then improvised insurance may be your answer.

Making money online - paid to design

2012-10-27T12:36:00.002-07:00

Did you know that anyone can become a product designer? Whether it's printed t-shirts, bags, hats, keyrings, mugs, or postcards, there are companies who will pay you royalties for your designs. If you are a dab hand at photography or art, you could be making money with your designs.

Why do it?

Providing your designs to be used on products can not only increase your income but could get your art recognized and featured. It could also be a great opportunity to expand your art portfolio by designing for new and interesting mediums such as mugs and t-shirts.

How Paid 2 Design websites work
Paid 2 Design websites earn money by selling products: their unique selling point is that these products could feature your designs. If customers purchase an item with your designs, you will receive a fixed percentage in royalties.
The best part of it is that you don't have to do anything. The company takes care of everything from taking the order, producing the product, and shipping the order. The only thing you'll ever know of an order is an email telling you how much you've earned.
Artists have always been paid royalties for their product designs, but it's only now that the opportunity to be a product designer has been made available to anyone with access to the internet.
Some websites even have smart-phone apps to make the design process easily possible through the use of a mobile device.

Legal issues
Most websites of this kind will only accept designs for which you own the intellectual property. That is to say you have either designed it yourself from scratch or purchased the right to use anothers designs.
Most websites disclaim that it is you, as the designer, who will be ultimately responsible for the consequences of any copyright infringement.
Most websites also prohibit the design of offensive articles, and depending on your respective countries laws this may constitute a criminal offense.

How to get started
The websites listed below are free to join without invitation or referral and require no qualifications or special skills:

Once you are signed up, you are free to design as much or as little as you like. If and when your designs sell, you will receive emails or account notifications informing you of the sale and stating how much you have earned.

Once you have designed your products, most websites will hold it in their catalog infinitely and further sales of those products require no further input from you.

Never pay to join a paid 2 design. The usual caveat for avoiding scams also applies here: if it sounds too good to be true, it probably is!

How payments work

The payment methods of paid 2 design websites vary. Some will pay you in pounds or dollars, while others may offer points that you can exchange for retail vouchers.
All such websites have a threshold that you must reach before any payments can be made. Sometimes this can be as low as ten pounds, but can be fifty pounds or more. If the company were to go into liquidation before you reached your threshold, it's likely that you wouldn't get anything.

Conclusion
Designing products can be a fun and interesting way of creating a passive income. Once a product is made it is made forever and you could have a potentially infinite number of sales for years to come with no additional effort on your part.

Because everyone is allowed to become a designer, there is a great deal of competition and an emphasis on quality. Like any venture, what you put into it will undoubtedly affect how much you get out of it. With enough effort, it is possible to make a living solely from the likes of Zazzle and some members (albeit talented designers with vast product lines) earn in excess of $1000 per month.

Penny is back

2012-10-24T08:57:00.003-07:00

After a long and unexpected vacation, Penny has returned to the office. Don't stay away too long - before this weekend is over we hope to have some fresh material on the site, and maybe even some fresh blood as some new and enthusiastic contributors prepare to join us.

Making money online - paid surveys

2012-09-05T03:44:00.000-07:00

We live in the information age, and there is no greater currency. Organizations and businesses will pay for all kinds of information, but what's typically important to them is customer attitudes towards products: this might be in relation to the product itself, or some element of it such as the packaging or planned advertising.

Customer surveys are big business, and they can have enormous impact on a product's success.

Why do it?

While some surveys can be interesting, many of them aren't and often take quite a long time to complete. They are, however, very easy to do and generally require very little thought. The amount paid for completing surveys can vary significantly, but will usually depend upon the length of the survey and the size of the group taking it.

How Pay 2 Survey websites work
Pay 2 Survey websites earn money from businesses who are undertaking market research so that they can better target their advertising. Advertising is the biggest business in the world, so it stands to reason that market research isn't far behind.

How to get started
The websites listed below are free to join without invitation or referral and require no qualifications or special skills:

Some higher-paying websites, such as Pinecone, accept new members by invitation.

Once you are signed up, you will typically be emailed links to surveys that are suited to the information you have already provided.

Never pay to join a pay 2 survey website. The usual caveat for avoiding scams also applies here: if it sounds too good to be true, it probably is!

How payments work

The payment methods of survey websites vary. Some will pay you in pounds or dollars, while others may offer points that you can exchange for retail vouchers.
All survey websites have a threshold that you must reach before any payments can be made. Sometimes this can be as low as ten pounds, but can be fifty pounds or more. If the company were to go into liquidation before you reached your threshold, it's likely that you wouldn't get anything.

Conclusion
Completing surveys is unlikely to pay all your bills, but you could add a few hundred to your annual income and perhaps the occasional expenses-paid shopping trip.

Penny's Bright Ideas #3

2012-08-24T02:30:00.003-07:00

1000 Visits

2012-08-16T13:17:00.001-07:00

Make do and mend - stain removal

2012-08-16T12:01:00.001-07:00

On this week's make do and mend we're going to be looking at how to remove stains from fabrics.

How many clothes and sheets have seen a premature departure to the rubbish tip because of a stain? By learning how to deal with such stains you can make your fabrics last longer and this will save you money in the long-run.

There are plenty of commercial stain removal products on the market, but these are often very expensive and rarely deliver as promised. Instead, where possible, we will be looking at tried and tested home remedies that won't hurt your pocket.

General

To have the best chance of removing a stain, you should act as quickly as you can to treat the fabric. The longer you leave it, the more difficult it will be to remove the stain.

Always check the care labels. This will tell you whether or not the fabric can be machine washed, and what temperatures it will be able to tolerate. If you're unsure how the fabric will react to certain chemicals, be sure to test them out on an inconspicuous area first

As a general rule (though there are exceptions), you should seldom use heat on a stain. Hot water, for example, can cause a stain to become set which will make it exceptionally more difficult, if not impossible, to remove. Ironing over a stain will also have the effect of setting it.

Bear in mind that some fabrics will be more resilient to chemical and heat treatments than others. Only follow these tips for fabrics that can be machine-washed.

Prevention
Remember: prevention is always preferable to cure. If you're about to sit down to a messy meal like a curry or a pizza, don't dress in your glad rags unless company demands it. If you're working on your car or redecorating your home, dress appropriately in overalls or tattered clothes retained for the purpose of such messy work.

Food grease

Mix bicarbonate of soda and a few drops of water to form a thick paste.
Apply the paste to the stain and leave for 30 minutes.
Soak the stained area in detergent (which can be diluted with warm water for more delicate fabrics) and leave for between 30 minutes to 2 hours.
Wash at the hottest temperature that the fabric will withstand.

Curry

Soak in warm water.
Squeeze out excess water.
Dab on a solution of glycerine and water and leave for a hour.
Rinse and repeat stage 3.
Wash as normal with detergent.

Chocolate

Cool the stain and brush off the excess (if any).
Dab with a solution of lukewarm water and detergent.
Wash at a cold temperature with detergent.

Tea & coffee

Rub glycerine into the stain.
Rinse.
Wash as normal with detergent.

Red wine (fresh)

Cover the stain with salt and leave for 3 hours.
Brush away the salt.
Soak with white wine for 20 minutes.
Rinse.
Wash as normal with detergent.

Red wine (old), red fruit and beetroot

Soak the stain in glycerine for 30 minutes.
Rinse.
Wash as normal with detergent.

Egg

Scrape off the excess.
Soak in a solution of borax and water (or salted water) for 30 minutes.
Rinse.
Wash as normal with detergent.

Chewing gum

Place the fabric in a carrier bag.
Freeze for 5 hours.
Chip away the excess gum.
Rub with white spirit to remove any remaining gum.
Wash as normal with detergent.

Ink

If non-permanent:

Wash as normal.

If permanent:

Rub away the stain with a cotton bud soaked in methylated spirits.
Wash as normal with detergent.

Oil-based paint

Dab with white spirit.
Rinse.
Wash as normal with detergent.

Perspiration (Sweat)

Soak in a solution of warm water and bicarbonate of soda (or 2 tbs of lemon juice) for 30 minutes.
Rinse.
Wash as normal with detergent.

Lipstick

Dab the stain with eucalyptus oil or white spirit.
Wash as normal.

Blood

If the blood is fresh:

Soak the blood stained item in cold salted water for around half an hour.
Wash as normal.

If the blood is older and dried in:

Soak the fabric in cold water along with a small amount of ammonia.
Dab the stain with a clean rag.
Wash as normal with detergent.

Vomit

Scrape away the excess,
Rinse in cold water.
Soak in a solution of cold water and detergent for 30 minutes.
Wash as normal with detergent.

Grass

Soak in a solution of water and washing soda for 20 minutes.
Rinse.
Wash as normal with detergent.

Shoe polish

Dab with white spirit.
Wash as normal with detergent.

Motor oil

Dab the stain with eucalyptus oil or white spirit.
Wash as normal with detergent.

Rust

Soak the stain in a solution of lemon juice and salt for an hour.
Rinse.
Wash as normal with detergent.

Candle wax

Chip away the excess.
Sandwich stain between brown paper or kitchen towel sheets.
Iron over on a warm setting.
Repeat, using new sheets or clean areas of existing sheets.
Wash as normal with detergent.

Conclusion
Before you resign your stained garments to the the trash, it can't hurt to give these remedies a try. You never know: you may find your fabric with a new lease of life.

Using less of toiletries

2012-08-13T04:55:00.001-07:00

How many times have you used an entire handful of shampoo only to wash it all out just a few seconds later? How many times have you used enough body-wash to bathe a hippo? How many times have you drawn an inch-long strip of toothpaste over your brush?
Whatever toiletries your bathroom rituals are composed of, chances are good that you use far more of them than you really need to.

Pay attention
By being mindful of how much of these products you are using each day, you can make them last much longer without changing how well the product works.
Take toothpaste, for example: many toothpaste tubes are designed with openings that deposit a larger amount than is actually required. Using just a pea-sized blob is adequate - using more won't make it work any better.

By being mindful, you may find that your toiletries last twice as long, which means that you will have halved your annual expense on it.

Date it
They say that what gets measured gets done. When you first open something, write on the date in permanent marker. Not only will this give you an indication of how long something lasts (and, therefore, how much it's costing you per day/application), but you may find yourself going to additional effort to make it last as long as possible.
Once the product is all used up, make a note of how many days it lasted, then challenge yourself to make the next one last just a few days longer. You may be surprised by how far these things can be stretched without compromising on their effectiveness.

Convenience is costly
Where possible, avoid relying on convenience products. Wash your hands instead of using sanitizer, wash your hair instead of using costly refresher sprays, and avoid travel-size products where possible (if you need travel sized items, you can always buy little bottles to decant your products into).

Go generic
Brand names are always more expensive than generic products. But picking generic products doesn't necessarily mean that you're compromising on quality: take a moment to compare the list of ingredients, and you're likely to find that many if not all of them are identical to those of costly branded products.

Buy when it's cheap
It may seem obvious, but many people make the mistake of buying toiletries only when they need them: if you've used the last of your toothpaste this morning, you're probably going to end up paying more than you should. Instead, you should always be on the lookout for special offers, and even buying in bulk when prices are particularly low. Things like shampoo, conditioner, body-wash and toothpaste last for years so there's no need to worry about these things 'going off'.

Cupboard clearing challenge
Over the years we seem to accumulate toiletries. Whether they're received as gifts, bought as an impulse purchase on special offer, or you've made a switch the second a new product has hit the shelves.

Fortunately, most such products have a phenomenally long shelf-life. You can save a lot of money with our cupboard clearing challenge. The rules are simple: use everything you have before buying more.
Don't attempt this challenge if you have special requirements of certain products like allergies to certain chemicals, sensitive teeth or skin, dandruff, etc.

Tips
Finally, let's take a look at a few penny-pinching pointers that didn't seem to fit anywhere else:

Squash new toilet rolls into an oval shape - it won't turn as easily on the spool so you're less likely to unroll more than you need.
When using pump-action bottles, only press the pump half way. Alternatively, you can decant the product into a different bottle.
Cut the ends off empty toothpaste tubes: you're likely to find enough left for two or three uses.
When you get to the bottom of a bottle of shampoo or conditioner, add a little water and give it a good shake: there's likely to be enough left for at least one more shower.
A teaspoon full of body-wash should be enough to wash your whole body, even if you're hanging on to a few extra pounds. If you apply it to a puff or sponge rather than your hands, it's likely to last longer.

Conclusion
Using less of something is always a good way to save money, and as most households spend an astonishing 500 pounds on toiletries every year, it's a good place to start.

Money for gold

2012-08-02T12:29:00.000-07:00

The value of gold is higher than ever before, so there's never been a better time to rummage through your jewellery box. The market, however, is saturated with companies grasping for your gold, and some of the more unscrupulous of these will take advantage of the unwary.

This guide looks at how to track down your gold, and how to sell it for the best possible price.

What can I sell
You may not have gotten your hands on Olympic gold yet (and even if you did we wouldn't recommend melting it for scrap!) but you can be sure that there is treasure to be found right in your own home.

Old out-of-fashion jewelry is the richest source of scrap gold. It makes no difference whether the jewelry is broken or mismatched because the gold you sell will be melted down.

How can I tell it's gold?
Gold hallmarked as such. Hallmarks are tiny embossed designs used to identify the date, assay office, and the carat. In the UK, gold weighing over 1g must be hallmarked before it can be called gold.

A 'carat' is a gold grading system. Not all gold is created equal: when making jewellery, gold is often blended with other metals as a filler. Therefore, 10 grams of 9 carat gold is worth considerably less than 10 grams of 24 carat (pure) gold.

When it comes to valuing your gold, the most important marks will be the hallmark indicating the assay office, and a number indicating the carat. In the UK, the following numbers are used:

Be aware that foreign gold may feature different markings and numbers from items made and purchased in the UK. In this case, you should consult a trusted jeweller before making any attempts to sell.

How do I sell it?

For someone who has never dealt with precious metals, selling gold can seem daunting, but many companies are going out of their way to make it as easy as possible so that they can maximize their own success.

Like any sale, it's important to know your product. Before you leave the house, look for the hallmarks and establish the carat, then weigh your gold as accurately as you're able to. Bear in mind, however, that domestic scales will only give you a rough estimate, and you must also take into account the presence of any stones.

Be sure to deal with any gold coins you have separately as these may have what is known as a numismatic value based on their condition, age and - most importantly - rarity.

You should also consider whether or not the jewellery has any antique value. If so, consult a specialist antiques dealer instead. Antiques are often worth more than the sum of their parts!

Just like when you're buying something, you're only going to get the best price by shopping around. Visit several jewellers and ask them for the scrap value of your gold items. Some of these jewellers may be willing to buy them as well, but only consider this after you have done your price comparing.

If you prefer to seek an online estimate, the following websites have proven popular according to independent customer surveys:

Conclusion
The Olympians aren't the only ones going for gold. Find it and sell it while the market is booming. Every good salesman knows his product: make sure you get the best price you can for it by knowing your gold and comparing quotes.

Penny's Security Tips #6

2012-08-01T13:51:00.001-07:00

Penny's Bright Ideas #2

2012-08-01T13:42:00.001-07:00

Making money online - product reviews

2012-07-24T15:11:00.001-07:00

With the recent surge in online shopping, it's becoming increasingly likely that a customer will never actually see a product in the flesh before making a purchase. As a result, more and more people are turning to independent product reviews to help them to make the right buying choices.

Product reviews are big business, and they can have enormous impact on a product's success.

Why do it?
There are many reasons to write product reviews:

To improve your writing skill.
To share your experiences / get things off your chest.
To make friends.
To increase your internet presence and reputation.
To make money.

Making money appears last on our list because it's unlikely to replace your day-job unless you were writing fifty or so a day.

How Pay 2 Review websites work
There are companies such as dooyoo.co.uk and ciao.co.uk who will pay writers a nominal fee for sharing their experiences of products and services. Such websites earn money from ad-revenue that is generated each time a customer seeks out one of their reviews.

Some review websites pay their writers based on the number of views their review receives; others pay a small flat-rate fee (such as 50p) which is then supplemented by a small additional sum for each view (typically 1p).

How to get started
Both of the above websites are free to join without invitation or referral and require no qualifications or quality exam. Some higher-paying review websites may only accept new members by invitation, or may only publish and pay for reviews that reach a minimum quality standard.

Once you are signed up, you are typically free to choose for yourself what you want to write about. Some review websites offer additional incentives to write reviews for particular products such as prize contest entries or a higher payment.

Never pay to join a pay 2 review website. The usual caveat for avoiding scams also applies here: if it sounds too good to be true, it probably is!

Building your reputation
The product review community is highly supportive. Most review websites carry out quality control by allowing reviewers to rate one another's articles. Articles rated highly may receive special awards such as being featured.

When someone rates one of your reviews highly, it is common courtesy to do the same in return (provided the quality of their reviews justifies it). Successful reviewers know the importance of this networking, and - though writing is typically considered to be a solitary experience - it's possible to gain new friends through reviewing.

The rules
As you might imagine, all websites that allow you to publish anything online have rules. Most of these will be obvious such as omitting expletives and offensive material. Remember, also, that while you are fairly safe in stating your opinion, be careful when stating facts. For example, it's fair to say that your TV broke after a year, but it is not fair to suggest that the particular brand of TVs in question are designed to break after a year.

Another rule of such websites, which may seem obvious, is that you must have owned or at least used the product or service you are reviewing. Generic reviews are usually quickly seen through by the review community and you will face suspension if you attempt to review things that you have no real experience of.

Most review websites also require you to exceed a certain number of words for a review to qualify as being payable. Typically such a word-count is between 100-500 words.

Remember that anything published online is accessible to anyone and everyone! Never include personal details and never write anything that you wouldn't want your mother, father, son, daughter, friends, co-workers, or even your boss to read.

Conclusion
Product reviewing is unlikely to pay all your bills, but it can be a therapeutic way of voicing your opinion. It is also a great way of improving your writing skill and, who knows, you may even make a few new friends. It doesn't cost anything, so give it a shot!

The rules of shopping

2012-07-21T11:08:00.001-07:00

The high-street and the internet are packed with temptations and devious psychological tricks in an attempt to part you from your hard earned cash. The rules of shopping are there to make you stop and ask questions before you make purchases on an impulse.

The Rules
Whenever you're shopping and you see something that you want to buy, ask yourself the following questions:

Can I afford it?

Do I need it? / Will I use it?

Is it value for money?

When you ask yourself whether or not you can afford a particular purchase, you should be thinking about your necessary expenses like food shopping, bill payments, and any loan/credit card repayments. If you need to borrow money to do this, the answer is: NO!

When you ask yourself whether you need it or are likely to use it, try to be realistic. The item might not work as well as it claims, or might not last as long as you expect it to. Also think about what else you could afford to do with the same amount of money. There are also specific considerations dependant on the kind of product; for example, if you're attempting to body-build or lose weight, spending a lot on clothes that might not fit you for long is not a good idea.

When considering whether something is value for money, think about similar items offered by competitors and what advantages are offered over them. Try to be objective and don't just look at the label. Designer clothing is particularly notorious for being poor value for money, because the quality is often (though not always) no better than much cheaper generic brands - even designer products are sometimes made in sweat-shops!

If your answer to ANY of those questions is 'No', walk away and don't look back. Congratulations, you've avoided an impulse buy.

If you answered 'Yes' to both of those questions, ask yourself:

Can I get it cheaper somewhere else?

Is it reasonable to buy a cheaper make / brand?

Can I get a discount?

What did other buyers think?

Where possible, you should price compare before committing to buy. You can find out how to do this by looking at our how to price compare article.

When considering whether it is reasonable to buy a cheaper make or brand, it's important to take an objective look at the advantages and disadvantages of one product over another. Try not to be swayed by superficial qualities if it is actually the function that is most important. For more information on cheaper brands, take a look at our going down a shelf article.

It is always worth asking yourself whether you can get a discount. The approach will obviously vary depending on the type of product you're looking to buy.

For grocery items, there may be coupons available either online or in supermarket magazines.
For most other items there may be exclusive online prices available that are cheaper than those found in stores.
For fairly expensive items (over £50), it is not unreasonable to attempt to haggle for a lower price. However, this can only be done face to face or over the telephone and does not typically apply to online purchases (with the exception of private sales). Never be afraid to haggle: the worst they can do is say 'no'.

Finally, it's always worth taking a look at what other buyers thought of the product you're considering. There are an increasing number of forums and websites where customers can leave reviews detailing their experiences with a product: from cans of soup to luxury holidays, you can find reviews on just about anything. These reviews vary in quality and it will usually be quite easy to see which you should be paying attention to and which should be brushed aside. Of course, not everyone has the same experience with a particular product, but be on the lookout for patterns such as common defects.

Conclusion

Think before you buy and don't be tricked into spending more money than you want or need to. Consider all the other options and find out what experiences other buyers have had. If you do decide to make the purchase, consider whether you can get it somewhere else or if you're entitled to a discount.

Penny's Bright Ideas #1

2012-07-19T09:06:00.003-07:00

Today Pennysitter introduces Penny's Bright Ideas. These are quick and easy money-saving ideas that didn't have anywhere else to go, but which Penny was keen to share.

The penny jar

2012-07-17T10:32:00.000-07:00

After a hard day of shopping your coffers are likely loaded with copper and silver that will wear their way through even the toughest pockets and make you sound prematurely Christmassy as you jingle merrily along.

These coins, once unloaded, have a nasty habit of disappearing down every nook and cranny, so it can be useful to have a jar or other container that you can dump your coins into without really having to worry about them.

What can I use?
Some people use jars, some use empty giant whiskey bottles (no, making a penny jar is not a good excuse for buying one!), some use traditional piggy banks or tin cans. It doesn't really matter what you use as long as it's big enough to hold all the shrapnel that your favourite stores so enjoy landing you with.

Some people like to use containers that they can't open until it's full like a ceramic piggy-bank that must be smashed open or a tin can that requires a tin-opener. This can be a useful way of saving up for something specific, but it also means that your cash could be left sitting at home when it could be in the bank gaining interest - however slight.

What to do when it's full
Finding the penny-jar full can be both exciting and daunting. Chances are there could be upwards of fifty pounds in there, but the prospect of counting and bagging it it all up to find out can hardly seem worth it. There are, however, other methods.

The company Coinstar offer change counting machines that are easy to use and are usually placed in convenient places like supermarkets. However, there is a catch: Coinstar deducts around 8% for the convenience: that's eight pence from every pound; eighty pence from every tenner, and eight pounds for every hundred.

Some branches of the HSBC offer coin-sorting machines to account holders. The machines deposit the funds into the elected account without any deduction. After that is done, there's nothing to stop you from deducting your money straight away. Of course, this is only a convenient option if your local HSBC carries a coin sorting machine.

Alternatively, you could purchase a coin sorting machine of your own. Check out Penny's Shop to see some of the models available. All banks offer coin bags free of charge so, once sorted, the coins can be taken straight to the bank. It should be noted, however, that the most functional of these tend to be fairly expensive in themselves, and the idea of spending pounds to count pennies can seem counterproductive.

Bank it
With today's interest rates for online savings accounts, it's not unreasonable to expect 3%: 3p a year for every pound. It may not sound like much, but it's not unusual for people to find that their penny jars contain hundreds of pounds - hundreds of pounds that could have been making something as opposed to nothing. Put simply: don't let your money sit around in jars and shoe-boxes for too long.

Conclusion
Look after the pennies and the pounds will look after themselves. It's surprising how quickly shrapnel can add up into serious money, so do yourself a favour and keep all of it in one place. Once you've collected a fair amount, consider sorting and banking them.

Guilty pleasures - gambling

2012-07-10T05:29:00.001-07:00

Never, ever, attempt to use gambling in an attempt to escape from financial difficulties. In all likelihood, you'll only make the situation worse. Instead, speak to a free, qualified and independent debt adviser such as those offered by the CAB. No debt is insurmountable.

Gambling is addiction forming. Not everyone who gambles is an addict, in the same way that not everyone who has a glass of wine on the evening is an alcoholic. It is, however, important that you're able to recognize a problem if one exists.

The most effective way of saving money would be to stop gambling entirely, but some people enjoy the thrill that comes along with it. Pennysitter is about saving money without taking the enjoyment out of life. For the most part, this article will look at keeping things in moderation, gambling only as much as you can afford to lose, and establishing discipline.

If you feel that gambling is becoming a problem for you, or you are concerned about the gambling activities of a family member or friend, you can visit Gambleaware.co.uk which features useful expert advice on how to better manage a gambling habit.

Remember, you don't have to stop to save money. In fact, even the smallest change to your habit can have a massive impact on your long-term savings. Every pound saved is a pound earned.

Setting limits
"I'll stop after the next win."
"The next go could be the lucky one."
"I almost had it! Just a little more..."
"It's ready to pay out!"

If these thoughts, or thoughts like them, are familiar to you, it's likely that your self discipline could use a little work. It's all too easy to be drawn into gambling - it's designed and contrived to do just that - but it is important to know when to stop and only spend what you can afford to lose.

This has become much more difficult since the arrival of online gambling. Once upon a time it would have been a case of keeping yourself from entering the casino, but at just a keystroke away the temptations can be more overwhelming than ever before.

Before you sit down to gamble, work out how much you can afford to spend and do not exceed it no matter what happens. If you're gambling online, it can be more difficult to keep track of your money, but be vigilant. Remember: losing does not increase your chance of winning - there is no prize 'waiting' for you. If you are winning, learn to quit while you are ahead.
Always keep a diary of how much you are spending on gambling games, and how much you are winning. At the end of each month, add up each and compare. The figures may be eye-opening. Even if you don't wish to stop or cut down, it is still useful to at least be aware of how your money is moving.

Bargaining
You can still save money by seeing gambling as a form of currency in negotiations with yourself. By making yourself choose between two things you want / want to do, you are still going to save money in one way or another.

No matter what you're doing to cut your daily spend, bear in mind that every pound saved means £365 a year that you can keep as financial security or for treating yourself at the end of the year.

Conclusion
Gambling can be a fun thrill, or it can destroy your life. Find out where you need to draw the line and draw it thick. Remember, you don't have to stop to save money. In fact, even the smallest change to your habit can have a massive impact on your long-term savings. Every pound saved is a pound earned.

Couponing - Groceries

2012-07-09T11:47:00.000-07:00

Coupons that offer money off particular products or for shopping at particular places can be a great way of saving money.

This article looks at coupons that you can use to cut the cost of your grocery shopping: both how to find them and use them.

Where to find them
Tracking down coupons can be a bit of a treasure hunt. You're never sure where you're going to find them or, indeed, what you're going to find. You can typically find coupons:

In newspapers as part of an advertisement.
In free supermarket magazines.
On product websites.
At specialist coupon websites.

With regard to the latter, Penny has been scouring the internet and came up with the following finds:

Check them out, but be sure to browse safely!

Putting them to use
Most coupons are very easy to use. Just hand them over to the cashier before they begin scanning your items. If you're using a self-scan machine, there will usually be a special page for entering coupons; if you have difficulties, ask a member of staff who will be happy to help you.

Location, location, location
Some coupons limit where they can be redeemed. This is especially true of those found in free supermarket magazines: typically the vouchers can only be used in branches of that particular supermarket. Sometimes even particular branches are excluded, so be sure to check the small print carefully.

Time limits
Most coupons feature expiry dates. Some of these can be quite generous, offering several months for redemption. Others can last only a week or even just a day. If you're considering using a voucher, it's important to check that it hasn't yet expired.

If you take to couponing as a hobby and become a seasoned coupon collector, it can be helpful to file them away by reference to their expiry dates.

Points to note
Saving money with coupons is all good and well, but there are a few things that should be borne in mind:

Most coupons cannot be used 'in conjunction with any other offer'. If the item in question is on special offer already, consider whether the coupon is really worth using instead of that offer.
Don't be tempted to buy things that you wouldn't normally buy except as a replacement for something you normally buy.

Conclusion

Couponing can be a useful (and sometimes fun) way to save money on your groceries, but due to their very nature they are not an especially reliable method of cutting your costs. Find and use what you can, but don't go to more effort trying to find them than they are worth.

Penny's Security Tips #5

2012-07-08T14:24:00.000-07:00

Easy tips to lower your gas bills

2012-07-07T11:16:00.003-07:00

The price of utilities has risen sharply over the last year so it is now more important than ever to save money where you can.

In another article we'll look at how to price-compare for gas providers, but this article looks at small life changes that can help to lower your gas bill.

There is a notable difference between gas use and gas waste. These tips will concentrate on the latter so that you can cut the costs without massively overhauling your lifestyle.
If you need to recap anything you've read, or would like a quick summary of tips, you can scroll down to the Recap section at the bottom of this article.

Feeling warm inside
Turning your thermostat down by just one degree can have the impact of knocking almost 10% from your gas bill: approximately £46. How low can you go?

Instead of trying to tackle the slightest chill by whacking the heating on full, consider wearing more layers or wrapping yourself in a throw or blanket.

If you are leaving the house for an hour or more, turn the thermostat down or off.

Keeping heat in
If you are using a gas fire, keep all doors shut, and fit the bottoms with draft excluders. This way you can better isolate the heat to where it's needed instead of it being wasted.
Thick curtains can also be useful to minimize heat loss when they are drawn. Consider drawing the curtains in the early evening.

Fitting silver-foil or other heat reflective material behind radiators can also increase their efficiency: this is because is prevents the heat from being uselessly absorbed into the wall and, instead, reflects it back into the room. According to Scottish gas, doing this can save you over £14 a year.

Having your home properly insulated can also go a long way in improving your home's heat efficiency and keeping the heat in. The best bit is that it might not cost you a thing: there are a number of insulation grants available (covering things such as loft and cavity wall insulation) for people in all kinds of circumstances, so it is worth contacting your local council to see if you are eligible for any of them.

Be efficient, buy what's efficient
Appliances are becoming increasingly efficient with the amount of fuel they use, so by keeping up to date with the latest in energy efficient technology, you can save a lot of money in the long-run. This is only worth considering, however, if you have sufficient capital to make such purchases.

Efficiency isn't just about technology. If you put a little thought into how you use appliances, you can cut pounds from your gas bill by being efficient yourself. For example, instead of using the oven for individual meals (assuming you have a gas oven), why not cook in bulk and freeze portions to eat later? It is more cost effective to cook a lot in the oven and microwave portions later than it is to cook everything in the oven individually. The same applies to using the hobs: instead of making enough spaghetti bolognese or soup to last just one night, why not cook in bulk? Not only will you cut money from your gas bill, but you'll have a convenient supply of home-made microwavable meals that can be ready in minutes.

Miscellaneous
Here are a few tips that didn't seem to fit anywhere else:

If you currently receive a paper bill, ask your provider if you are being charged extra for that, or whether you could save money by receiving your bill online instead (if you have suitable access to the internet). Some companies charge upwards of £3 each time they send out a paper-bill!
Changing your payment method can also reduce your gas-bill. Providers tend to be most amenable to customers who are willing to set up regular payments by direct debits. Ask your supplier how much they are prepared to discount you for this.

Recap

If you're serious about saving money on your gas bill:

Turn your thermostat down: even one degree can make a big difference.
Wear a sweater or snuggle up in a throw if things get a little chilly.
If you are leaving the house for more than an hour, turn the thermostat down.
Keep all doors shut and use draft excluders to isolate heat.
Hang thick curtains and draw them on the evening to reduce heat loss.
Fit silver foil or other reflective materials behind radiators.
Ensure your house is properly insulated. Check if you are eligible for grants to do so.
Invest in fuel efficient appliances.
Minimize your oven use by cooking in bulk.
Switch to a paperless billing system.
Change your method of payment to a regular direct debit.

Guilty pleasures - drinking

2012-07-06T03:39:00.000-07:00

Everyone has guilty pleasures, often so named because of the disproportionate effect they can have on your finances. There's nothing wrong with any of these guilty pleasures in moderation, but with small changes to your habits you can make huge changes to your bank balance.

For today's guilty pleasure we'll be looking at drinking.

Down the hatch
Regardless of whether you think it's a good thing or a bad thing, there's no denying that drinking is an expensive habit. Alcohol is becoming increasingly expensive, particularly following the minimum price per unit imposed in the UK markets.

The most effective way of saving money would be to stop drinking entirely, but realistically most people enjoy a drink. For the most part, this article will look at keeping things in moderation.

If you feel that alcohol is becoming a problem for you, or you are concerned about the drinking of a family member or friend, you can call Drinkline -the national alcohol helpline. It is a free and confidential service that is available 24 hours a day at 0800 917 8282. Additionally or alternatively, consider visiting Alcoholics Anonymous (AA) and DrinkAware.co.uk.

Pennysitter is all about saving money: there are plenty of other websites, as mentioned above, that deal with other aspects of drinking. You don't have to stop to save money: in fact, even the smallest change to your habit can have a massive impact on your long-term savings. The following example illustrates the effect that drinking just one fewer pint a week can have on your income.

Example:

1 fewer pint per week (average: 2.50 each)= 52 fewer pints per year.
52 fewer pints = big savings (average: 130 per year).

For a more accurate estimate of how much you are spending on pints, take a note of the price at your local pub or the typical supermarket price.

It's always worth keeping a diary of how much alcohol you drink. Even if you don't wish to stop or cut down, it is still useful to have this awareness, and nobody has to see it.

Bargaining
You can still save money by seeing alcohol as a form of currency in negotiations with yourself.By making yourself choose between two things you want, you are still going to save money in one way or another.

No matter what you're doing to cut your daily spend, bear in mind that every pound saved means £365 a year that you can keep as financial security or for treating yourself at the end of the year.

======
N.B. If you're trying to stop drinking or cut down, make sure you're doing so safely. Any reduction in the amount of alcohol you are drinking must be gradual, otherwise you could suffer severe side effects from withdrawal. To find out how to cut down safely and to find links to other support organizations, visit NHS Alcohol Support.

Reading List: Look After the Pennies

2012-07-03T14:16:00.000-07:00

For today's addition to the Reading List, we'll be looking at Look After the Pennies by Tess Reed.

This book contains over a hundred tips for saving money on virtually all aspects of your life. It's broken up into small sections for ease of reading including shopping, utility bills, insurance, groceries, food saving, savings, mortgages and rent, making money, credit cards and debts, holidays, house buying, home improvements, cleaning, travel, health and beauty, family, weddings, funerals, and Christmas.

Some suggestions, however, do appear to be clutching at straws. Additionally, some of the organizations referred to in the text no longer exist. You would also do well to take the legal advice at the back of the book with a pinch of salt as some of the advice is incorrect (for example, a shop is NOT obliged to sell you something at the price that is on the shelf as the book claims).

Interested in this book? You can find it and other Reading List suggestions at Penny's Shop.