Since 1991, there has been no rebanding. The effect is that many houses are incorrectly banded leading to a significant number of people paying too much council tax.

The easiest way to check is ask local neighbours what band they are in. If they are in a lower band you have a very good chance of not just getting a lower council tax bill, but getting a backdated rebate. A friend of mine recently was successful in getting a lower council tax band. He described it in more detail here – A Council Tax Reband could save you thousands

Other tips for Saving Money on Council Tax

• Students Don’t Pay council Tax
• If you live alone, you are entitled to get a 25% discount. Make sure you tell the council though.
• If there is one adult and several students, you are entitled to the 25% discount.
• Renovation. If the house is empty for renovation, you can claim an exemption for upto 12 months.

On a personal note, I really dislike the council tax, it is very regressive and takes a high % of my meagre teaching income. I would like to see a local income tax which would be fairer. The thing with the council tax is that it was rushed through because everyone despised the poll tax. But, the solution given was not the best.

Also see: Council Tax at Guardian

Other Extreme Council Tax Savings

• Live in an area where council tax rates are low.
• Live where council services are run on the basis of good value for tax payers money or where the government subsidy is high.
• ‘If you’re on a low income, whether you’re working or not, and need financial help to pay your Council Tax bill, you may be able to get Council Tax Benefit. Find out more, including who is eligible and information about the Second Adult Rebate’ from Directgov
• Beware of the potential ‘mansion tax’ beloved of the Libdems but also keep an evil eye on Eric Pickles

Read rhetoric or reality on Council Tax

• 36% of customers spend more than 10 hours selecting a holiday. Only 21% would spend more than 10 hours selecting a mortgage.

• 41% of customers do not shop around for the best financial products because they don’t have enough time.

This is despite the fact that looking for the best deal online and on the high street only needs to take a couple of hours. For a couple of hours work, the savings on a large mortgage can be up to £2,000. For 10 hours, a £2,000 saving equates to an hourly rate of £200 an hour. (If people are too busy they must have a good job) Reports show that many homeowners never remortgage and end up on their lenders Standard Variable Rate SVR. By remortgaging they could take advantage of lower interest rates and very significant savings

Shopping Around

• Men are more likely to shop around than women. 55 per cent of women say they do not shop around compared to just 35 per cent of men.
• One significant factor is that people get overwhelmed by the choice of financial products on offer. That shouldn’t stop you talking to at least 4 possible lenders to learn what they offer.
• Like the old graffiti ‘Be Alert – your country needs Lerts’. You are going to be stuck with your mortgage for a long time (25 years perhaps) so it makes sense to check out the deal as best you can.
• Talk to friends and relatives who have been through a similar process. It is a good time to listen to others before you make your own commitment.
• Interest rates are not the ‘be all and end all’. You need to consider the whole package including fees, customer care, repayment levels, flexibility and appropriateness for your own circumstance.

• Fool.co.uk 

A newspaper headline this morning screamed ‘nearly one in five believe……’ as though that was a major and significant news item. Well it also means more than 80% do not believe…..

Statistics That Need a Health Warning

• 87.3% of statistics are made up!
• 41% of statistics are wrong and the other 69% are not much better
• More than half the population have above the average number of eyes! ( If some people only have one eye then those with two are above the average of 1.999 eyes per person.)
• Graphs are lairs tools. Change one axis and it elongates or distorts the graph. Not starting at zero can exacerbate the volatility of the fluctuations in the graphed data.

Samples That Need a Health Warning

• Biased data can be created by choosing who is asked. Ask the unemployed about the government then present the data as being an unbiased sample – no way.
• Slant the question to get the result. ‘With more murder and terrorism should we bring back the death penalty?’
• Hidden bias can be inbuilt. ‘A television show might ask people to call in and vote on some issue. Not only might the people who watch that particular show be atypical of the overall population, but the people who are motivated to make the phone call might also be more or less likely to vote “yes” than people who don’t want to call. This is called “response bias” – people who choose to respond might on the average have different opinions than the people who don’t.’
• Ask several questions likely to draw a negative response then spring the key question that takes advantage of the pre-conditioning the earlier questions created.
• Phrasing of the question is key. ‘Do you think the unemployed are paid too much in benefits?’ will get a different response to ‘Do you thing the government should help those who can’t find work.

Selective Statistics That Need a Health Warning

• Dramatic statistics can be found if you select only the bits of data that show what you want.
• An annual statistic may select the month to start or be based on an unusual starting point.
• Over precise numbers give a misleading impression of accuracy at least 99.9873% of the time.
• If all else fails put in a qualifier. ‘Global statistics show Yorkshire men over 50 are better read than Lancashire illiterates.’

Statistics are a blunt tool at best. Use them carefully. Treat statistics with suspicion and apply commonsense to test your reactions.
Beware statistical errors, lots of stats are duff!
Do not spend your money based on statistics in marketing blurb.

Statistics For Dummies Lifestyles Paperback by Deborah Rumsey from Amazon

Things – Tangible Items

• Do you collect or buy items that you do not need, fail to bring joy or never use? Why bother!
• Things demand time to acquire, store, dust, move and maintain.
• What have you got too much of; clothes, pens, knicknacks, tools? Declutter and resolve not to buy replacements.
• Only handle newspapers, documents and magazines once then sentence them to the recyling bin.
• Never stack things up intending to get to them later, throw them away or put them away, never pile them away

People

• Do unexpected visitors, telephone calls or long conversations steal way your time?
• Learn how to break up unwanted time wasting with polite but firm statements; ‘Excuse me but I need to get back to work’; ‘I really don’t want to take up anymore of your time’; ‘I am tied up and will call you back’ etc.
• Too much politeness can loose time and add to your stress and pent up anger. Set a tone about how you want to manage your time.

Television , Computers and Gaming

• Are your electronic on too many hours in the day? This is encouraging indiscriminate use? Switch them off and ration the time you plant to spend
• Carefully chose those programmes and activities that are really worthwhile, set a schedule or time limit and stick to it.

Saying Yes Saying No

• If you can’t say no gracefully you will take on too many tasks
• If you are doing too much for others you may dilute the time spent on what you should be doing.
• Practise saying ‘no’ and when asked to do something take time to ponder before responding.

Waiting and Worrying

• The majority of worries are groundless, they are perceived rather than real problems. Try to keep and act in the present spending time only on real problems.
• To forget your worries undertake positive activities, be busy doing things that are rewarding and joyful.
• Waiting in shops or being delayed during travel can mount up into a large chunk of the day. Try to multitask, read a book, make mental plans or use the time as an unexpected bonus from other stresses. Do not resent waiting turn it into a positive.

Procrastination is the Thief of Time

• Old proverbs and sayings have been well tested through time. ‘A stitch in time ….’, ‘Procrastination is the thief of time’ and ‘Time and tide wait for no man’ are ones to consider in the context of eliminating time wasting.
• You may be forced to do urgent tasks but know and understand what the important tasks are and get on with them.
  The discretionary and optional tasks should wait or be left altogether.
• Set deadlines and targets
• Do hard tasks first and do not agonise over decisions just get on with it ‘Do It Now’.

These are several tips to help avoid overspending.

1. Be Aware of How much money you spend.

Many chronic spendaholics live in denial about how much they spend. If you realise how much you spend on various items, this alone may be sufficient to reduce your spending. For example, on a night out it is easy to spend much more than you think, especially if you pay for drinks and food on cards. – Quite often, friends think they must have lost some notes, because the money has disappeared so quickly. Often the problem is relatively cheap items, that we buy often: coffee, takeaways, mobile phones e.t.c. Go through your bank accounts, credit card statements and add up how much you spend on different items and decide whether you really want to spend that much money.

2. Avoid Impulsive Spending.

If you are in the habit of spending on impulse make an effort to have a moment of reflection before buying anything. If you see something you would like to buy, try waiting a day before actually committing yourself to buying. If you really want it, you will come back. This also gives you the chance to find other things that may be better.

3. Don’t spend time where it is easy to spend money.

If we spend alot of time in certain places we will be drawn to spend money. This spending is mainly to relieve our boredom and not because we need to buy it. Therefore, don’t spend every lunch break wandering around your favourite shops. Go to a garden or place where there is little temptation to spend all your money.

4. Have Clear Objectives when shopping.

Before going shopping have a clear objective of what you need to buy. This means that you will buy things because you need them, rather than because they “look nice”. Don’t go into the city centre without a clear objective.

5. Give Items Objective ratings.

Before purchasing any item give it an objective rating of how much you need and value it. If you are honest in your valuations you will think carefully about buying things which are less than 8 out of 10. It is good to combine this suggestion with leaving things a day. This means you will go back to buy the things you really need and value the most.

6. Avoid Spending by Habit.

Quite often a lot of our spending is a daily habit. However, this spending could easily be unnecessary. For example, if you buy a takeaway coffee everyday, why not invest in a coffee machine. Just because you spend $10 a day on lunch doesn’t mean this habit has to continue for ever. Try taking your own lunch. Reevaluate all your habitual spending patterns and decide whether it is necessary.

7. Give yourself strict income limits.

If you really have trouble controlling your spending it will be very effective to give yourself strict amounts of income per week. This will work most effectively with cash, because it is easier to monitor. If you learn to live on $80 per month, you will value money more and learn more frugal habits.

8. Think Green and Environmentally Friendly.

• 10 Painful but effective ways to reduce debt
• Top 10 Tips for Reducing Debt

Early Savings Habits

• Children learn thrifty habits if they get the right encouragement. Coins in a jar or pocket money into a saving account can show how to get enough money together to buy something worthwhile.
• Birthday presents in cash or postal orders from well meaning friends and relatives can help start good habits.
• Taking odd jobs or paper rounds are a traditional way of earning some money for teenagers to get cash together for something bigger than their spending money will fund like a cycle or gaming toy.
• There are now children’s or Junior ISA’s for tax free savings

Habits of a Good Saver

• Feel good and excited about saving and building your savings.
• Keep your savings separate from day to day money and only touch your savings when essential or a goal has been achieved.
• Set a target for your annual savings and put a regular amount away everytime you get paid.
• Aim to save 10% of your income on a regular basis or at least enough to squeeze yourself until it starts to hurt.
• Have a saving fund equal to at least 3-6 months of your normal income.
• Reward your saving efforts occasionally and make saving a fun pastime.

Special Saving Projects

• Saving for a pension is a key part of saving. An employment based scheme will have a deduction from your wages before you get the cash.
• If your work related pension scheme is too poor or none existent you can save for a Personal Pension in your own right. You get tax top ups to the money you save subject to HRMC rules.
• Saving for a large expenditure like a house deposit or family event such as a wedding should have clear targeted input savings and total saving sum in mind.
• Holidays, car funds, electrical goods purchases are often quicker saving projects. Do not stop saving for the long term fund just to be able to get these luxuries. Open more than one savings accounts if needed.
• Do not be too proud to use the jam jar method for bills that arrive infrequently like road tax, TV license etc. I even have a pile of £1 coins for an occasional drinking bonanza.

Saving Habit Tips

• Try little and often if you can’t afford large and often.
• Set up a regular commitment by salary deduction, direct debit or standing order.
• Save where you get a fair rate of return. Look around for good interest rates from sound companies. Often if the offer is too good to be true it usually is.
• Leave the interest in your savings account as it will compound up over time as you get interest on the interest.
• Shelter your savings from taxation using ISA’s and Pension funds where appropriate.
• If you can commit to a long term saving without withdrawals or to a regular monthly amount many banks and building societies will offer better rates of interest.
• Check at least twice a year that you chosen savings account is still right for you and offering the best deal.
• When you have enough ‘rainy day money’ saved up in an account that you can access quickly consider longer term savings. With Unit trusts, Investment trusts and Shares you may be looking for capital growth rather than income via interest or dividends and have a longer horizon on your savings.

• Energy is one of the highest household costs. Switch off items not in use.
• A full fridge or freezer uses less energy than a partially empty one. No warm air can get in when the door is opened.
• Plan your cooking so you optimise the oven and hob.
• Only boil the water you need, leaving some water to go cold is wasteful
• Put a lid on it – when boiling or cooking it will heat up faster.
• Wash and wash-up in full batches

Heating Savings

• Wear a vest or another jumper and keep your rooms a bit cooler.
• Reduce thermostats or central heating temperatures.
• Stop heating empty rooms and only heat the space you are using.
• Double check the tariff you are on and move supplier for a better deal.
• Block drafts which are a cause of feeling cold rather than being cold.
• Remember your grandparents probably had far colder homes to worry about.

Repair Savings

• In this disposable society we have forgotten how to repair household items. Have a go at repairs, you will surprise yourself.
• Built in obsolescent can sometimes be overcome by a tradesman who specialises in repairing electrical goods.
• Clothing can be stitched and resown. Buy good shoes and clothes to start with and expect to keep them longer.
• Reglue or nail furniture and fittings rather than replacing them. Don’t be a retailers dream who changes everything at a whim.
• Consider making it yourself or repurposing something you no longer use.

Miscellaneous Savings

• Buy less fashionable items like brown furniture at auctions. It will be cheap, better quality and may come back in fashion netting you a handsome gain
• Buy quality items but fewer of them to balance the books. (How many Lakeland plastic items do you have that you don’t need?)
• Borrow from your local library rather than buying books and DVD’s.
• Swop with family or give them present lists so you get what you need not ‘Oh that’s just what I wanted’ type presents.
• Use Freecycle, charity shops, voucher codes, and retail offers.

Food Savings

• Bulk buying of food staples can save you money but not if you have any credit card debt where the interest may be worse than the saving.
• But fresh food in local markets
• Cook good wholesome food rather than buying prepared meals.
• Plan ahead and use food left overs for another meal
• Save expensive foods for special occassions – it saves money and keeps them as special treats.

Unwise Savings

• ‘Pennywise pound foolish’ should encourage you to spend time on the big decisions and not sweat the small stuff.
• It costs nothing to ask for a deal or discount but do not be too aggressive and walk away if the deal is not for you.
• Even if it is cheep if you don’t need it it is too expensive
• Two for one Bog-offs and 70% sales are still profit makers for the retailer. Genuine bargains are hard to find. The Hidden Persuaders aka marketing people earn a fortune by attracting the gullible.
• Buy the best quality you can afford and make it last.
• Do not compromise on safety – most electrical goods and children’s toys must pass stringent safety tests but apply commonsense as well.

Transport Savings

• Keep your car longer it will spread the depreciation longer and the annual cost will fall
• Buy an annual license and insurance not on installments that costs more.
• Walk short distance rather than driving. A cold engine uses more fuel than a warm one.
• Drive steadily in the highest gear for optimum fuel consumption.
• Avoid leaving your engine running unnecessarily.
• Use public transport at off peak times or buy in advance. There are often lots of different prices for the same journey so shop around

Scrooge’s Christmas Savings

• Set a limit on the cost of each Christmas gift and stick to it.
• Invent new wrapping paper and decorations from old magazines or newsprint.
• Brew your own – if you start now it may be palatable for next Christmas.
• Buy booze early for the best deals – the supermarkets ease prices up as Christmas approaches.
• Stick to the ‘Kiss’ principle by keeping it simple.

Read Money saving on Financial Services

Commonsense Savings

• Prepare in advance and take as much from home as you reasonably can.
• Plan on using a bicycle, a car is very expensive, often hard to park and a constant drain on your resources. A bike will also cut down on public transport costs.
• Think secondhand – it can be an interesting part of learning value for money. Charity shops abound for interesting clothes, books can be acquired from last years students and junk shops or auctions can help furnish the first bedsit.
• Look for discount deals on computers and electrical products but always check the total price against other stores.
• NUS Extra discount card can offer a good deal on many student purchases including cinema tickets and Superdrug.
• www.studentsubscriptionservice.co.uk is the place to order your technical and other magazines.

Frugal Living

• Concentrate when dealing with financial services companies, they can be predatory.
• Bank account incentives are designed to get you used to debt. Even the best Student Account Provider 2011  according to moneyfacts ties in free overdraft with a range of cash back deals.
• Nationwide and Halifax are good for foreign currency.
• Virgin offer good broadband deals but talk to other students to see what is on offer.
• Voucher schemes, cash back and loyalty cards can be useful sources of that bit extra. Try studentbeans.com for offers and discounts
• Heed our much stated advice ‘If you aint got it to spend don’t spend it.’

Consumer Spending Definition

Household expenditure is almost two-thirds of the expenditure measured in Gross Domestic Product (GDP).
Households’ consumption expenditure covers the purchase of all goods and services. It does not include the purchase of dwellings or expenditure on valuables.
The household sector includes only those living in the UK in traditional households, and institutions, such as retirement homes, boarding houses or prisons.

Problems for Consumer Spending

• Disposable incomes are falling with a 2.7% reduction in 2011 over last year. (ONS)
• Personal debts are still high and need paying down to ease consumers confidence in further spending.
• Inflation on food prices fuel and power have reduced discretionary spending elsewhere.
• Potential interest rate rises and inflation may delay any imminent recovery.
• The number of Housing transactions has reduced and thus related expenditures are not being purchased.

Punditry and Comments

• The media have reported that the weather, the Royal Wedding and other extraneous factors have cut our consumer expenditure. We believe there will always be ‘events’ so this is a tiered excuse for journalists.
• Consumers do not have ‘the need’ for much of the spending that had become the norm. The pendulum is still swinging towards lower consumption.
• Saving has become more important than spending and even tax breaks will not dramatically shift the emphasis. Tax breaks are on hold anyway.
• The lack of  ‘feel good factors’ is suppressing excessive consumption.
• According to the Office of National Statistics for example ‘In Q1 2011 expenditure on clothing and footwear fell by 2.4 per cent in volume terms  compared with Q4 2010. This was mainly driven by spending on garments which forms approximately 80 per cent of the total spending on clothing and footwear and fell by 1.9 per cent.

More detailed reports from the Office of National Statistics (ONS) are available

In the developed world spending has become a hobby a habit and a happiness generator.
Now is the time to curtail your spending and substitute more free, fun activities.
First the Worlds Top Tip…..

Do Not Spend

• The worlds top financial tip is do not spend your money (unless it is a matter of life and death).
• The saving habit has been lost and debt is seen as normal. Debt is very expensive and a cost to be avoided!
• Plan free entertainment. You will enjoy a treasure hunt or indoor games evening as much as most paid for entertainment.

Further Financial Tips

• Some costs are obligatory but others are discretionary or optional. Cut out the later two or replace with free substitutes.
• Walk rather than drive, use public transport and avoid car parking costs.
• Be happy being prudent but don’t be mean spirited at the same time.
• Save energy at every opportunity. Heat people not empty space, do not boost power company profits by leaving items switched on. Take regular meter readings to reinforce your saving habit. Your library may lend you a free monitoring device.
• Use money saving web sites but also do your own checking.
• Avoid waste especially with food. Buy at markets, eat seasonal fresh food and cook with cheaper cuts of meat and fish.

Vested Interests

• Be extra vigilant when dealing with those who have vested interests.
• Branded Coffee shops have managers, head offices and shareholder dividends to pay. Independent shops only need to make a living.
• Banks and financial companies have been rapacious making inordinate profits and they have got a taste for it! Barclays made over £100 profit from every man woman and child in the UK in a depressed 2010 £ 6.07billion.
• Keep it simple, offers are tempting because companies rely on inertia of customers. They expect to profit from You over a long period, but it is in your hands.

Substitute Activities

• Learn to cook. Vegetarians eat cheaper foods and balance their diets more carefully. If you are over weight you are paying for the extra food.
• Find a hobby that produces something, homemade wine, trinkets to sell at local markets or original art work.
• Your local museums are probably still free to visit. They are a source of wonder on ‘the make do and mend’ approach of our forefathers.
• Fresh air and exercise is free, that Gym membership is not essential
• Join libraries and clubs to make good social contacts. Do not become a mean Scrooge figure.
• Find enjoyment in beating the financial money system that is breaking down parts of our western world society.
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