If you’re struggling to cut down on expensive luxuries read this guide to scaling down. We show you how to save over £4,000 with a few painless, money-saving swaps.

Check our table below and see how you could save and just click on the links to find out more about each money-saving swap…

Ditch the car and join a car club

Why should I switch?

The total cost of running a car can be pretty scary – add up the cost of tax, insurance, MOT checks, fuel, servicing, repairs, depreciation and parking and you’re talking about an enormous figure. If you don’t need your car every day to commute to work, joining a car club will save you thousands of pounds.

A car club gives you access to what are essentially pay-as-you-go cars. As a member of a car club any vehicle is covered with breakdown cover and insurance (although you will have to pay an excess). Fuel is also included in the hourly charge so all you have to pay is a membership fee of around £50 and then either an hourly, daily or monthly fee to use the cars. Hourly rates range from £3.95 to £5.99 and daily rates from £29 to £50.

How much can I save?

According to Carplus.org, if you drive less than 6,000 miles per year then a car club could save you up to £3,500 a year.

How can I do it?

Sign up with a car club such as Streetcar, Zipcar or City Car Club and rent one of their cars by either the hour or day. See a list of car clubs here. Once you’ve signed up and paid the annual fee you will be sent a special smartcard and PIN number which you can then use to access the cars and make your bookings.

Find out more in our guide, alternatives to owning a car.

Switch your energy supplier

Why should I switch?

All of the big six providers cut their prices this year so there’s a good chance you’re not on the best tariff. Don’t lose out because you can’t be bothered to switch – we can’t stress enough how easy and quick it is. And best of all, it’s completely free so there’s absolutely nothing to lose and plenty of savings to gain.

How much can I save?

You could save as much as £468 just with a few clicks of the mouse.

How can I do it?

Energyhelpline’s comparison service is completely free and unbiased. They show you the best rates around from suppliers in your area and you can choose the tarriff that suits your needs.

Once you’ve checked all the search results and chosen a supplier you’d like to switch to, you’ll asked to enter the rest of your details (address, tenancy status) which will then be forwarded on to your new supplier, who arranges the switch.

You will receive an email from Energyhelpline confirming the details of the switch, as well as contact details for your new supplier. You’ll still have a seven working day ‘cooling-off period’ to cancel the arrangement. If not,  you’ll receive a welcome pack within a week – and after four weeks the new supplier will let you know when the switch will take place.

On this day you need to take a meter reading and give that to the new supplier. They will then contact your old supplier so that they can arrange your last bill and close your account. You don’t need to change meters/wires because the new supplier uses the same ones. Remember, it’s only after you’ve paid the final bill that you can cancel your direct debit with your old supplier.

Find out more in our energy switching guide.

Switch your premium digital TV package

Why should I switch?

Even the basic subscription from Sky costs £19.50 per month – and that’s before adding any entertainment packs, sports or movies – totaling  £228 per year.

A Freeview box on the other hand will only cost you the price of the box itself and that’s it – no monthly subscription to worry about and you still get up to 48 channels to enjoy. Boxes start from as little as £20 so even the initial cost is pretty small.

How much can I save?

Getting the cheapest Freeview box will cost around £20 which would save you £214 per year when compared to the basic Sky package.

How can I do it?

A Freeview digital box will connect to any TV in your home so there’s no need to buy a new TV set (although most new TVs will have Freeview built in). You can purchase a Freeview from a host of retailers including Tesco, Amazon, Argos and Currys. (Do make sure Freview is available at your address first by checking on Freeview.co.uk first).

Switch to a SIM-only mobile tariff

Why should I switch?

We think the best thing about SIM-only deals is the length of contract – most have a contract of just one month so you won’t be tied down and can change quickly when a better deal comes along. These days networks are only offering the best deals on standard contracts of 18 or 24 months in some cases.

How much can I save?

Virgin offers the cheapest deal at £8.68 (or £5 if you are a Virgin Media customer) – for this you get 100 minutes and unlimited texts. There is also an extremely competitive £10.21 tariff offering 200 minutes and unlimited texts.

On the O2 Simplicity tariff you can get a deal for 300 minutes, 500MB of data and unlimited texts for £21.50 a month.

If we look at O2′s standard monthly contracts, if you wanted 300 mins, 500MB of data and unlimited texts it would cost £32.00 on a 24-month contract.

Compare this to the Simplicity tariff, and you really are quids in – saving around an impressive £252.00 over 24 months. You will, of course, not receive a free phone.

Ask yourself if you would be getting a phone worth over £252 and worth tying yourself to a contract for two years.

How can I do it?

Take a look at the SIM-only deals on offer from Virgin, Vodafone, Orange, O2,  T-Mobile and 3 Mobile. Remember that not only do prices vary, but also the inclusive minutes, texts and data limits will too – so you may find that if you want to use the internet a lot, one network offers the best deal, but equally if you love to talk, you may be btter off with a different one. Find out more in our guide to SIM-only mobile contracts.

Switch your current account

Why should I switch?

Halifax pays new customers £100 to switch to its Reward Current Account. As if that wasn’t good enough, Halifax will give you £5 each month you pay in £1,000. There are overdraft fees rather than monthly interest payments (making it easier to manage your money), plus the minimum monthly deposit is a reasonable £1,000.

How much can I save?

You’re not strictly saving money, instead you’ll be making money – and an impressive £100+ at that!

How can I do it?

You’ll need to switch to the Halifax Reward Current Account by phone, in a branch or by using their simple online form.  The online option is by far the best – applying takes less than ten minutes.

Get more information on choosing the right current account for you here.

Get the best value broadband

Why should I switch?

The difference in price between the various broadband options around can be vast, so switching to the cheapest broadband package will save you a bundle.

Basic line rental for BT costs £13.60 (unless you can pay a whole year’s worth in one go in which case it’s £10 a month). On top of this if you take the cheapest option – Basic broadband from BT – it is free for the first four months, then £13 per month thereafter plus, of course, the line rental. This is an 18 month contract.

The PlusNet Value package costs just £6.49 per month and you can get a line-rental with Plusnet for £11.99 a month. The package includes a free wireless router and a monthly usage allowance of 10GB. The broadband service has speeds of up to 20MB a second. The price per month stays at £6.49 per month as long as you are in an ‘optimum broadband area’ which 80% off us in the UK are – you can find out which market area you live in here. You can choose to sign up for twelve months in which case you would receive a free wireless router (but pay £4.99 P&P) or pay for the router and you are only tied to a monthly rolling contract.

How much can I save?

Over the first year …

PlusNet would cost £107.87 (including a £25 connection fee and £4.99 P&P for router) plus £143.88 for line rental = £251.75 over 12 months

Basic broadband from BT would cost £121.33 a year plus £166.80 for line rental = £288.13. This is the average price for a year taking into account during the first four months the broadband package is free.  You would be tied into a 18-month contract.

This means you could save £36.38 by switching!

How can I do it?

See if you could save money by switching with our free Broadband Choices comparison service or check out the PlusNet package.

If you do decide to switch, all you’ll need to do is call your current supplier for a MAC key/code. For more tips and advice on broadband see our comprehensive broadband guide.

Useful Links

• PlusNet
• Amazon
• Energyhelpline
• Halifax Reward Current Account
• Virgin