Boost your financial know-how with these simple steps to savvy savings
Shop around
Shopping around to get the best deals for smaller items and financial products as well as big spends could save you thousands of pounds each year.
But, according to research from Alliance & Leicester Savings, 62 per cent of Britons do not hunt around for the best prices, with most claiming that they would rather pay extra to avoid the hassle of shopping for the best deal.
'When it came to bigger ticket items like a new car, digital camera or holiday flights, the resounding response was in favour of shopping around, with just a few per cent saying that they wouldn't do so,' says Ross Dalzell, manager for Savings at Alliance & Leicester.
'There's clearly still a mismatch for people when it comes to thinking about spending large amounts of cash in one go and making smaller purchases on a regular basis.'
For example, even though average broadband prices have dropped 36 per cent over the last four years to their lowest level, five million households are paying more than the going rate for their broadband, wasting on average £120 a year, according to research from uSwitch.com.
'Plan your spending and never shop on impulse,' says Tom Butler-Bowdon, award-winning author of personal finance book 50 Prosperity Classics. 'Generally, the longer you plan for a purchase the more you will save.'
Shopping around doesn't need to be time consuming. Just type the name of the product into an internet search engine like www.kelkoo.co.uk. Do make sure that you get the best deal, rather than the best price. There's no point in buying a cheap item that doesn't meet all your needs.
Pay in cash
The hazards of credit cards are endless, mostly because using them helps you forget you're spending real money.
'Studies show people spend a lot less when they actually have to part with real money,' says Tom Butler-Bowdon, author of 50 Prosperity Classics.
Save Save Save!
The average Briton has spent £3,685 on pointless purchases that they don't even use, according to Abbey research. Half of all people in Britain own an expensive item of clothing they've never worn, more than a third own uncomfortable unworn shoes and a quarter have unused exercise equipment.
Yet, while we waste money on inessentials, the majority of us don't save our cash at all, with two thirds dipping into our savings to buy treats, according to MoneySupermarket.com, and two thirds of people do not have an ISA either, says Nationwide.
But experts say that anyone can save, no matter what they are earning.
'It's a common misconception that some people can't save anything: anyone and everyone can make some savings, even if it's simply by making sure you pay a reasonable price for the basics in your weekly shop,' said Ross Dalzell, manager for Savings at Alliance & Leicester.
You may not get the instant gratification you might from buying a glamorous item, but seeing your property fund and pension pot multiply will be far more satisfying in the long run. Plus, having savings prevents you having to go into debt when emergencies inevitably hit.
'Build up an emergency fund that will cover your living expenses for three to six months,' suggests Tom Butler-Bowdon. 'If something happens you won't have to depend on the charity of others or go into debt.'
And believe it or not, with a little effort you have the power to make small lifestyle changes that could save you big bucks.
Manage your debt
Where possible, steer clear of debt and consider whether a loan or credit card debt is absolutely necessary. It may seem like the easy solution to your money problems, but a loan can all too easily become a huge weight you just can't get out of.
Recent research by MoneyExpert.com reveals that six and a half million people in the UK have had to consolidate their debts in the last three years, in an attempt to keep their finances under control.
And with personal loan debt almost four times higher than last year, Britons, on average, have to work 70 days solid to earn enough money just to pay off the interest on debt, let alone re-paying the actual debt itself, according to new figures from Unbiased.co.uk.
'It is always a good idea to consider alternatives before taking out a loan. If you have some savings, then dipping into your nest egg is likely to cost far less than borrowing money, even if it is a low-cost loan,' says David Kuo, Head of Personal Finance at Fool.co.uk.
'Additionally, delaying your purchase and putting away some spare cash is bound to work out cheaper in the long-run.'
Butler-Bowdon recommends avoiding debt, but when you do, ensure it is to create or buy an asset that will generate income. Keep your borrowing at an absolute minimum and keep your payments affordable to prevent falling behind.
It may be easier to simply accept the first loan you see, but sticking with your current bank and failing to shop around could cost you!
Do your research
'Learn as much as you can about financial principles and how to save and invest. Nothing learned here is ever wasted,' says Tom Butler-Bowdon.
Yet the majority of Britons are in the dark about a range of financial issues. For example, most have no idea what their credit rating actually is. Although 67 per cent of consumers know their credit rating has declined in the last year, 41 per cent don't know that the way they use credit cards affects their score, according to Equifax.
And two thirds of Britons do not have an ISA, the majority because they incorrectly believe that you need a large lump sum to open one or that they won't be allowed instant access to their money, according to a report from Nationwide.
'ISAs were introduced ten years ago and yet some people still do not understand them,' says Matthew Carter, director for savings at Nationwide. 'Anyone can take advantage of tax-efficient savings.'
For more money saving and personal finance tips, advice, news and videos, visit www.financedaily.co.uk