Tips to Make the Most of Your Money - Online Spending
Compare, Codes, Cashback, Community, Negotiation
COMPARISON SITES
The traditional method might be to visit multiple retailers separately that sell the product you are considering purchasing. This is often time-consuming and you might end up missing a few that you were not aware of.
I typically use dedicated comparison sites for household utilities, mobile phone bills, insurance policies, flights and hotels. If there is one thing you need to do from this page, it's this one!
Yes, every single time. This is where the big savings can happen (I mean hundreds of pounds seriously in any given year). Make sure you use at least 2-3 sites as prices from the same companies can vary across comparison sites.
As a bonus, you often receive special discounts such as cinema tickets or freebies for making a purchase through their site. But again, don't make this the reason to buy.
You can often use the cashback method below to click through to the comparison sites as some of them offer cashback. But do be aware, I have noticed that some of them have offered higher prices if you click from the cashback sites versus just using the comparison sites.
For everyday items and consumer electronics, I do a detailed Google Shopping Search combined with the normal scouring of Amazon and eBay.
You should use camelcamelcamel.com for Amazon and filter items by sold for eBay to check historical prices. They will fluctuate. I did use dedicated comparison sites before but realised over time that I got the cheapest prices anyway without.
VOUCHER CODES/COUPONS
Amongst all of the methods on this page, I think I may have been using online voucher codes for the longest. This is another quick and easy method to save money directly. Just type in your retailer along with "voucher code" into Google and you will normally get reputable results on the first page or so.
The retailers themselves sometimes advertise these codes but very often, you will have to actively visit a voucher code site and search for it. Personally I have lost count of the amount I have saved, it probably factors into around 50% of my online shopping.
The cashback sites sometimes offer voucher codes that will still pay out cashback. It does work because I have successfully "doubled-up" on several occasions. But you should decide for yourself whether a pure 20% instant discount is superior to a 15% voucher code + 10% non-guaranteed cashback for example.
In my experience, some of the voucher code sites have outdated codes or are outright useless. I would focus on the top 5 reputable sites (basically the ones you'll find on the first 2 pages of Google as these are the ones that retailers will work with directly.
CASHBACK WEBSITES
(Screenshot from my TCB account)
I know a lot of people don't bother with this because at first glance, it gets the reputation of "pinching pennies" and secondly, that the level of effort isn't worth the reward.
But once you've setup a profile, all it takes is a few clicks every time you are buying something online. Just fill your shopping basket as normal at the retailer's website, then jump onto the cashback site, login and search for the retailer.
Click the link on the page provided and it'll take you right back to the retailer's website. Only this time, the retailer has recorded the fact that you have come via the cashback website and therefore should pay a commission fee to them.
These sites are essentially acting as an affiliate and passing on part of the commission onto you. The retailers factor this into their marketing costs to lure customers in and encourage affiliate sites to draw in customers.
Individually, the cashback can appear small but let me tell you, I have saved close to £1K over the years. Some retailers offer a certain % return and some offer lump sums like the £40 I received off my car insurance policy.
Rewards can be particularly significant with insurance policies, utility bills and holiday bookings. And definitely do it when you plan to make a big purchase. Smaller retailers are less likely to be on there, but worth checking.
Remember though, cashback is never guaranteed so you should still compare the pre-cashback prices at various retailers to make sure you are getting best value for money. Any cashback is just a bonus.
I never make it the main factor in making a purchase at a certain retailer. Personally, over 90% of my cashback claims were successful. In my experience, the length of time taken to receive cashback can typically take anywhere from a few weeks to a few months.
COMMUNITY WEBSITES
(Screenshot from HotUKDeals)
Although there are several mainstream sites compiling deals across the Internet, I would like to mention HotUKDeals in particular for the UK. HotUKDeals has been very valuable to me because it is a community whose purpose is to inform others of deals that they have found.
The website/app uses a system of hot and cold to easily inform users whether a post is worth attention or not. It covers a wide range of standard items and services, both online and offline.
Because the community has essentially pre-filtered all of the prices using some of the above methods, these are very often either the best prices or very close to it. It has saved me a lot of time.
Some of the deals can be very tempting though, so if you are a spontaneous spender, learn to resist! Otherwise you would not be using the site for its intended purpose.
The community often covers food grocery items with significant discounts at nationwide or regional supermarkets that is difficult to compare consistently and effectively. Obviously services such as insurance policies are customised to the individual, so sites like this are less useful for that purpose.
NEGOTIATING A DISCOUNT
I have been an introvert for all of my life so negotiation was initially a challenge. I didn't know what to say or the best approach I should take.
I also wasn't particularly aware which sellers were open to negotiation and which sellers had fixed prices. My situation is based on the UK, so it may be different in your country but the principles should be largely the same.
Over time, I learnt that insurers, mobile phone companies and second hand sellers were most open to negotiation. It worked particularly well if you were an existing customer, you told them that you had a better offer and was looking elsewhere. Remember there is no obligation on you to have to buy from this particular seller.
I have saved hundreds of pounds for me and my family using this method. The best discount I have received is £500 off my second-hand car. Make sure you are polite and friendly. They will want to win you over. Don't try to start a argument because in the majority of cases, the seller representative will just put up a barrier. At this point, they would rather lose a rude customer.
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If you are unsure as to what to say, I suggest the following:
a) Tell the seller what you are looking for, ask for their best deal, then wait for them to give you a deal;
b) They are likely to give you their first offer; you should respond that you found an offer for £X at X company; even better if you have better offers at multiple sellers. For anything that can be easily found via a simple web search, have the evidence ready if they ask for it.
c) The seller will likely pretend to do something and say something along the lines of "I need to consult my manager". Hold the line and wait for them to come back to you.
d) If they get back to you with a better offer, you can choose to accept if it is now the best offer. If it is still more expensive, tell them that and reinforce you will go with the other seller.
If it is now the best offer but you want to make sure it is their lowest price, you can tell them it is still too much. At this point, the seller either try to keep you by giving you an even cheaper offer or unofficially state that it is their best offer.
e) You can either accept, decline or tell them that you need a little bit of time to think about it. Don't be worried about walking away, you can always ring up again.
From experience, this typically ends the negotiation or on the rare occasion, it can trigger a last-minute U-turn where the seller states a revised final offer.
*My simple tip is to make sure you say thank you from time to time. Customer service deal with awful people all the time so it is a nice change to serve someone with a level of decency.
Remember to never stick with the renewal offer as these are often ridiculous. They are often created with the expectation that you as the customer will negotiate.
COMPANY PORTAL DISCOUNTS
If you work for a reasonably large company or even a SME, they may be part of a scheme which provides exclusive prices to employees for a variety of retailers. This was the case with my previous two workplaces.
It is worth signing up and looking into these, especially for expensive consumer electronic purchases. Sometimes the final price is cheaper, it is worth comparing to the above methods.
MOBILE NETWORK APP DISCOUNTS
Several mobile network operators in the UK offer customers an exclusive app which offers discounts for restaurants and freebies such as coffee.
Quite a few of my friends were not aware of this but it is worth getting if you are already with that network. It can make quite a difference over the course of a year as some offers refresh weekly.
BANK ACCOUNT SWITCHING
(Wix Stock Photo)
In the UK, most of the banks offer money incentives for customers to switch from their current one. The incentive was in the region of £100 to £150 in most cases.
Over the years, I have basically switched between most of the banks, building up a nice sum. This was all done online - I never once needed to step into a local branch.
You need to keep the account open for a minimum period of time before they will pay the incentive. Each bank or banks under the same parent company will only pay you once over a set time period to avoid people gaming the system.
Some of them require you to have direct debits and/or meet a minimum monthly payment to keep your account open or avoid a fee. Do note that they typically only require a transfer in once per month, you can transfer it out immediately to your preferred account.
You normally don't need to keep your cash in there. Read the specific bank criteria carefully before you apply so that there are no surprises.
Obviously this is not for anyone as some would like to remain with their existing banks but there's nothing stopping you from switching back. Though it is worth considering the reasons why you want to stay (if it is only familiarity).
BUYING A CAR
(Wix Stock Photo)
My first ever car was a Volkswagen Polo which I had been driving ever since I passed my driving test at the age of 17. After I graduated from university and had to use my car to commute and drive for work, I kept the same car.
Although I enjoyed looking at different makes and models, I wasn't particularly a strong car enthusiast and didn't feel a need to get a newer car. My Polo did the job and was fuel-efficient for its time.
What I learnt from my dad was that cars are one of the most depreciative assets you can buy (with the exception of rare vintage models). Yes it's nice when you first get it, you might feel a proud sense of ownership and you might even customise it.
But if you are buying it brand new, once it leaves the garage, part of its value (which you have just paid for) has already vanished. I was more interested in getting an apartment of my own, even if that was a long time away and I was determined to get there as soon as I could.
I had to eventually replace the Volkswagen with a Toyota a decade after I had first driven it. I had decided that it was bad value for money to continue maintenance repairs and I replaced it out of necessity. I used the negotiation method as explained earlier in this article.
I chose the Toyota because it had a moderate price tag, highly fuel-efficient, environmentally friendly, zero road-tax and cheaper insurance.
It turned out to be a very fortunate decision for me as supposed to buying a more expensive car, because not long afterwards, the pandemic knocked on the door. The year of the pandemic, I must have accumulated less than 1000 miles in total using the Toyota.
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Type of Purchases - groceries, electronics, going out, holidays & transport, phone and utility bills
*The information on this page is my own opinion, for general informational purposes only and are not intended to provide specific advice or recommendations for any individual. It is purely intended to provide education about personal finance.
From reading this website we cannot assess anything about your personal circumstances, your finances, or your goals and objectives, all of which are unique to you, so any information contained on this website are just that – an opinion or information. We highly recommend you seek professional advice from someone who is authorised to provide investment advice.
