Despite the cloud of the double dip recession still looming over vast areas of the economy, the last financial quarter has seen remarkable resilience across the wider economy with unemployment falling by 82,000 and the GDP rising by 1%.

Although the recession is officially over, consumer confidence is still low and disposable incomes are squeezed, therefore many shoppers are looking for ways to make their money go further this holiday season.

Well you will be happy to know that there are plenty of ways to cut your everyday costs and increase your disposable income. You may or may not be aware but the internet is full of fantastic money saving tips that all promise to make you a “credit crunch warrior”, however some of which over complicate the situation and in some cases even offer no-go emergency payday loans that will only make your financial problems worse.

With this as inspiration below highlights a few simple techniques that everyone can understand and implement today into their lives.

Step 1

To start with the money saving process all that is needed is a recent bank statement and a highlighter pen as this will allow you to focus on your fixed monthly costs, such as rent/mortgage and your variable monthly costs such as gas and electric. Once you have added up your essential monthly costs for energy, food, fuel and rent subtract the total from your average monthly income. The figure you are now left with is your disposable income, which you can use as you please.

Step 2

There are many ways you can increase your disposable income amount through simple daily changes. For example if you own a car it might be worth considering a downsize in engine or a reduction in usage. If you require your vehicle for the essential daily commute to and from work the acquisition of a Chooseafuelcard.com Fuel Cards will enable you manage your spend further.

Step 3

Prevent further debt, by only spending what you can afford. Don’t impulse buy any large purchases unless you have the money available. Take time to save up and continue until you actually have the cash amount. The chances are that by the time you have saved up the money you will no longer want or require the product in question.

About the author: Chris Algar writes for Chooseafuelcard.com who offer a great way to manage your fuel consumption and expenditure. For more information click here

What Is an ISA?

ISAs were introduced by the government as an incentive to encourage us to save. Having an ISA account means that you are saving in a tax-efficient way. Any money or stocks and shares up to your yearly ISA allowance limit won’t have capital gains tax or income tax set against it. So any savings you do make will be completely tax free.

There are two types of ISA. The first and simplest is a cash ISA, which is just like any other savings account as you simply put money into it as regularly as you can and watch your balance grow. The other type is a stocks and shares ISA, which works in the same way except that instead of putting money into the account you invest in stocks and shares instead. This kind of ISA obviously involves more risk as your shares may rise or fall depending on the market.

Both ISAs have an annual limit on what you can invest in them. For cash ISAs the allowance is £5,640 and for stocks and shares ISAs it’s £11,280. Of course, you don’t have to invest the full amount – as long as you don’t go over the allowance you can put away as much or as little as you wish.

Why Choose an ISA?

The obvious benefit of ISAs is that there is no tax payable on your savings. You won’t have to declare any profits on your tax return, so they won’t affect any other part of your finances. Essentially, any gains you make will go directly to you and not to the taxman.

ISAs are not as confusing as they may seem. In fact, they are easy to set up and manage and can be opened with relatively small amounts. You can save as and when you want – make regular deposits each month or simply when you have the money available.

Many people think that an ISA is only for long-term savings and, of course, the benefits are greater for savers who can invest their money over a longer period. But they can also be used for short-term savings. Even if you might have to withdraw some of it, it makes sense to keep your money in a tax-free account for as long as possible.