Why saving money is more important now than ever
In 2019, the average household energy bill cost £1,184, according to an Ofgem report. This year, with more people than ever working from home due to the pandemic, this price is sure to go up. With heating across the nation being switched on and Christmas swiftly approaching, we wanted to share a few tips to help you be more economical this season whilst working at home. Here at Kara Accountants, we strive to give our advice on how best to navigate your business through this pandemic, ensuring that you are financially prepared through any uncertainty.
For information on how government support for businesses is changing, we recommend visiting GOV.UK to find the latest financial support available. You can also follow our blog where we will be announcing any major changes to the UK government’s support schemes for businesses throughout the country.
Making savings whilst working from home
There are lots of little changes that you can make at home that can make a big difference in your savings. Here are our top five tips on changes you can make to boost your finances:
- Hit unsubscribe: One of the easiest ways for anyone to save money is by hitting the unsubscribe button. So many people are unaware of how much money leaves their account each month simply on subscriptions they hardly use. Now is the time to go through those subscriptions, practice some brutal honesty, and consider what you really need and what you really don’t.
- Auto-switch your utilities: Setting your utilities to auto-switch, or using an auto-switch company, enables your gas and electricity to switch to new suppliers any time a better deal appears. You can also sometimes earn cashback when switching energy suppliers, depending on the supplier, as another simple way of retaining more of your spending.
- Install LED light bulbs: Did you know that LED light bulbs use 90% less energy than regular bulbs? While they are more expensive to purchase, in the long-run, replacing your bulbs with new LED fixtures could save you a lot of cash in energy bills.
- Claim up to £6 a week back: The government is currently running a scheme that allows workers to claim back up to £6 a week if they are currently working from home. This can be done either through your employer (if they run the scheme) or through your taxes by following this link on GOV.UK. While £6 per week may not seem like a large saving, every penny adds up.
- Build up an emergency fund: In times of financial uncertainty such as these, it is more important than ever to put some money aside in an emergency fund. Generally, three months wage is considered to be a good amount of savings to rely on in case of emergencies. So start putting little amounts aside until you have a nice lump that you can access in case of a really rainy day.
Looking for financial services?
For help on how to budget during this time, whether that’s for yourself or your business, contact us today for financial advice and to discover the services we offer. Our team of A.C.M.A. C.G.M.A. and M.A.A.T qualified accountants are ready to work with you and your business to ensure financial stability during the Covid-19 pandemic.