If you feel as though you overindulged in 2024, and your finances aren’t looking as healthy as they should, then this article is for you. We naturally view the dawn of a New Year as a clean slate so now is the perfect time to review and declutter your costs.
There are a raft of increased costs that companies will have to navigate this year too. From April:
- Companies will pay National Insurance at 15% on salaries above £5,000
- Legal minimum wage increases (over-21s will rise to £12.21 per hour)
- Employer pension contributions are also increasing
Companies are already juggling increased utility costs, and supplier/material price increases. The decision as to whether these costs can be passed on to the customer is often debated (and hopefully analysed with financial data!)
The team at Accounting Clarkes have pulled together our top tips to help you make some cost savings at the start of the year.
- Stop wasting money through unused subscriptions.
Small amounts spent regularly soon add up! What might have started as £5 per month initially might now be a monthly payment of £15/£20 from your account. Identify your regular subscripts by running through your direct debits, and then be honest with how well they are utilised:
- If you can’t remember using it, cancel the subscription immediately.
- Use some features? Investigate if there is a lower-value tariff you could switch to.
- If it’s a definite keeper, is it time to switch to a competitor to get better value?
- Could you save money on an annual subscription?
- Investing in something new – shop around!
If there are new purchases to be made, including a new subscription, don’t accept the full price advertised online! If you are going to be a new customer, it is highly likely that they will have an introductory offer for you.
- Search online for discount codes.
- Perhaps there’s a referral code an existing user could share with you that unlocks a discount for you (and a reward for them).
Don’t forget to share your referral codes if you have them – you could earn credit to reduce your bill or some other reward.
- Take a closer look at your expenses.
There’s so many apps out there that can do the ‘thinking work’ for you when it comes to deciphering receipts. If your categories are too broad, you might not realise where your budget is being wasted. The more detail you can analyse with, the more insight you’ll have. That insight becomes a tool to use in your decision making. Can you set a goal to reduce spend in some categories by 10% in Q1?
At Accounting Clarkes, we care about your personal finances too! Here’s some useful cost saving tips as a consumer:
- As well as looking for online discount codes, sign up for an account with an online retailer and you’ll usually get a reward or discount to use around your birthday.
- If you feel motivated to declutter in January, use apps like Vinted to earn cash for things you no longer need. Choose to save or put it towards something you want.
- Supermarket hack – don’t pick items you see at eye level (the cheaper ones are usually higher or lower)
- Just as you do with your business expenses, take a closer look at where you spend your money. Apps like Expensify can help do the hard work for you, analysing your receipts. You might think you only spend £10 on takeaway coffees each week, and realise it’s actually double that ! Be informed so you can take back control.
We’d love to hear your cost saving tips for 2025. Add a comment below or join in the conversation on LinkedIn or Facebook.
If you feel as though the costs in your business are spiralling, call 01252 612484 and speak with Gillian and Chris. We can help you to improve the health of your business and achieve your goals in 2025.
