Six ways to help save money by negotiating

Phone and broadband contracts

The important thing to remember is: mobile and broadband providers want to keep your custom. And once your contract expires you’re in a prime position to negotiate yourself a better deal.

“The biggest reduction I ever got in my phone contract was by bringing up the contract price of a rival provider for the same number of texts/minutes,” says Timi. “They transferred me to their ‘retentions line’, and I was offered a discount. By all means threaten to leave, but don’t bluff. You must be prepared to leave if you don’t get the outcome you’re looking for.”

Insurance

It can be all too easy to simply renew insurance deals, but this is another area where renegotiating can save you pounds. Again, Timi recommends doing your homework before you begin bartering.

“I love to use price-comparison websites for insurance products, of which there are many,” he says. “Also consider paying for insurance annually rather than monthly as this is often cheaper.”

And don’t be talked into paying for insurance you don’t really need – especially for travel. “If it’s for an adventure holiday, you probably do need it,” Timi continues. “If it’s for a domestic train or coach trip to your nan’s, maybe don’t bother.”

Household bills

Unfortunately, as energy and utility prices rise across the board, traditional methods of cutting bills by switching providers are no longer an option – the deals simply aren’t there any more. Instead, Timi suggests renegotiating your own relationship with your energy usage.

“I find it easier to focus on behaviour and usage rather than pricing,” he says. “The Energy Saving Trust published a very useful list of the five most energy-consuming appliances in the home and they are, in order: wet appliances such as washing machines and dryers, cold appliances like fridges, then consumer electronics, lighting and cooking appliances.”

So turning the lights off does help, but hanging wet clothes rather than using the tumble dryer will help a whole lot more.

Subscriptions

This is another area where automatic renewal is rarely the best option. “With subscriptions, generally the best way to get them cheaper is to sign up for new-subscriber promotions, or by paying annually,” says Timi.

And once again, don’t be afraid to threaten to cancel altogether: “Leaving subscription providers absolutely does work, and at the point of unsubscribing many services will either offer to pause your subscription, or will offer you a reduced rate for a set period to keep you.”

Shopping

From the big high-street chains to independent traders, Timi says that almost everyone with something to sell will be prepared to cut a deal. When buying a laptop, for example, ask if it comes with a free laptop bag.

“In my experience, both bigger and smaller companies are happy to throw in extras,” he says. The ‘don’t ask, don’t get’ principle applies here. When buying big-ticket items like shoes, electronics or furniture, always ask if there’s a discount. Use questions like, ‘Do you have any promotions on at the moment?’

“And definitely haggle at markets and car boot sales,” he continues. “Sellers will be more than happy to add in extras or give you money off if you’re already parting with a decent chunk of cash. Waiting until the end of the day might give you more leverage, as sellers may be looking to shift their remaining stock.”

Holidays

For many of us, a summer break is our biggest single expense of the year, but there are ways to shrink the cost. “One of the things I like to do with flights is to use price-comparison websites to find the cheapest prices, but book directly with the airlines, as this makes moving dates and rebooking much easier,” says Timi. “Using reward credit cards or signing up to airlines’ loyalty programmes is also a great way to get money off.

“Many hotels will give you the option to book today, but pay on the door, which can help to manage cash flow. And most importantly, if booking online, start your holiday booking journey with a cashback website. It’s free money!”