Martyn James: Make shopping pay with some ‘smart spending’

If money is pretty tight right now, then dealing with the ‘season of spending’ might be getting you down. But don’t panic if you’re out of flexibility with your budget. There are still some things you can do to make your money go further.

‘Smart spending’ is where you take advantage of discounts, loyalty schemes and cashback sites to make your money go further. If you’re willing to spend a little bit of time getting to know how some of these smart spending methods work, not only can you save money – you can get some back too. Here’s my guide.

Loyalty schemes

I was always a bit of a sceptic about supermarket loyalty cards. After all, you were handing over a lot of valuable data for a few measly points. However, nowadays, it’s worth signing up to all of the schemes.

That’s because almost all of the big supermarkets have introduced a two-tier pricing system for a vast range of items sold in-store or online. You’ll see two prices listed next to products: one for loyalty card holders and a ‘normal’ one. There can be some major differences in those prices, with some loyalty deals giving you up to half off. Now… how normal those regular prices are is up for debate! I know that the government are looking at questionable pricing – so watch this space.

Cashback websites

Fabulously, there are some great websites that actually give you cash back if you spend via their site or apps. The way these sites work is the brands – from supermarkets to clothes stores – offer discounts and deals through the cashback sites. But when you click through the link and shop, the commission they would have paid the website is then paid to you in actual cash. So if you check the sites before you shop, you could get money back.

Check your plastic

It’s not just cashback sites that offer these deals. Check out your bank accounts and credit cards. Many of the biggest financial companies also offer discount deals, offers, points and cashback. Rather than doomscrolling while watching the telly, get in to the habit of clicking on your banking apps and seeing what’s on offer.

Smart spending sites

There are also specific apps that you can use to manage your spending that also give you rewards. I use Hyperjar, which allows me to move cash in to online ‘jars’ that I can use for the weekly food shop, savings and more. That way I can set myself a budget when I shop and use the deals available that week. I also take the cashback and pop it in to a savings account before I get tempted to spend it!

Renegotiate your contracts

I often mention it in this column, but by threatening to walk when your contracts end, you can get a much better deal. I saved £600 a year by renegotiating my broadband package alone last year. If you contact your insurance company three to four weeks before your renewal, you can avoid some of those massive price hikes.

If money is tight, then speak to the business to see if you can renegotiate your contract. For example, you might be able to reduce your mobile phone data allowance. Most of us don’t use anywhere near the monthly allowance because of our home wi-fi, so this could help you shave off a couple of hundred pounds a year.

Look at where the interest is highest

Tempting as it is to use credit cards to hoover up those offers and points, the interest rates on the cards can be jaw-dropping. So set your account to claim the whole balance each month, or even better, pay the card off as soon as you’ve used it to shop. If you’ve switched a credit card balance to an interest free deal but are still spending on the card, bear in mind that you might not clear the interest on your new spending until you’ve paid off the ‘interest free’ part of the balance.

Martyn James is a leading consumer rights campaigner, TV and radio presenter and journalist. Read more from him here