Tips to beat inflation

Shop around for a better deal

We've said it before and we'll say it again: shop around and then shop around some more when it comes to choosing financial products.

Everything from credit cards to loans, current accounts to motor insurance; the more research you do and the more you look at what prices are out there, the more you are likely to save. Do not put your trust in one bank and simply assume that they will give you the best deal.

Research from the online bank Intelligent Finance estimates that personal loan borrowers across the UK lose over £1 billion a year by saddling themselves with uncompetitive and inflexible loans.

'People's failure to shop around creates a bonanza for big high street banks,' says Grenville Turner, Chief Executive of Intelligent Finance.

'It allows them to get away with offering less competitive products than they would if customers were just a little more astute. People need to be less accepting and a little more questioning when choosing their financial products.'

Lloyds TSB research claims that only one in ten Britons have switched their current account to get a better rate of interest, while just a fifth has shopped around for a better deal on their savings. And just eight per cent have bothered to look for a better deal on their home loan.

The internet can be a huge help when it comes to shopping around for a better deal, even if it's just for your initial research to get an idea of the market. It's quick, easy and allows you to compare a huge number of options to make sure you get a competitive deal.

Exchange money before you go on holiday

In might not seem like much of a saving, especially when you are about to jet off on holiday and relax, but according to a new report, British people could get ten per cent more for their money by arranging their foreign exchange in the UK, before heading on their summer holidays.

The study by Sainsbury's Travel Money claims one in five adults in the UK wait until they are at the airport or holiday resort before exchanging their pennies into the correct currency.

This means around nine and a half million UK tourists are literally throwing their money away by not arranging their foreign exchange before heading on their visits abroad.

The problem is that airports commonly charge commission and do not give their customers the best exchange rates. On the other side those who take their plastic abroad are likely to face overseas charges and poor exchange rates as well.

Convenient it may be, but if you are feeling the strain in your wallet then exchanging your money beforehand could offer you big savings. Another money saving tip for those going on holiday is to take a UK break, or, thanks to the good exchange rate, head to the US.