7 Ways To Protect And Save Your Money In Lockdown

Being in lockdown isn’t ideal for anybody, but for some, it’s much more than an inconvenience. For hundreds of thousands of people, being in lockdown means not being able to work, which can mean not being able to earn as much, if at all. But, there are some simple things you can do, that could help you keep more of your money in your pocket, so you can better weather this storm.

Freeze your memberships

Memberships to gyms, golf clubs, sports facilities, restaurant clubs and other hobby-related clubs are wonderful things to have, but they can run to hundreds of pounds a month and while we’re in lockdown, you may not be able to use them! And, in this situation, then isn’t it better to keep that money in your pocket? Freezing your memberships is different to cancelling them, and means you press pause on the payments, but they’ll be restarted once pandemic restrictions ease and you can enjoy your memberships again.

Lots of organisations are automatically freezing memberships until they’re able to open their doors or host events again. If you’re a member of a club that hasn’t done this but you’d like to freeze your membership while you can’t use it, drop them a line and see what they can do!

Don’t auto-renew your travel insurance

If you usually take a few trips abroad per year, for work, city breaks, skiing in the winter and sunning yourself in the summer, then it makes sense to pay for an annual travel insurance policy that covers all your holidays, rather than insuring them one at a time. And, letting your policy renew automatically means you always have cover, whenever you want to jet off somewhere.

Right now, though, automatically renewing your travel insurance could mean paying for cover you don’t use, and your policy also might not give you the level of cover you need in today’s world. Lots of insurers have confirmed that their standard travel insurance policies will no longer cover coronavirus-related claims – which they did in the early days of the pandemic – whether that be medical cover if you take ill while abroad or reimbursing you for the cost of cancelled holidays.

Instead, you will need to purchase a specific “COVID cover” policy to make sure your insurance covers you if your travel plans are affected by the virus or related restrictions. If you already have a standard travel insurance policy, then this would be an extra cost. So, isn’t it better to keep your money in your pocket for now, and spend it on the right type of cover as and when you go away?

Be careful with payment holidays

Payment holidays have been enormously helpful to many throughout the pandemic. But the rules around them limit use to a total of six months per account you have, and also permit lenders to continue to charge interest during a payment holiday.

If you’re able to keep up the payments towards what you owe on your borrowing, then this is the best thing to do to avoid paying more in the long run. It also means that if you decide you do need a payment holiday later, then, as long as the scheme is still available, you’ll have that option. If you do need to take a payment holiday now, though, then it’s important to remember that this doesn’t have to be a complete break from making your payments. If you’re able to afford to pay something, just not the usual full amount towards your obligations each month, then your lenders should be able to support you with this. Anything you’re able to pay now can help to keep extra interest costs down and do future you a favour by not lumping them with that bill!

Shop around

Whether this means hitting the price comparison sites to find better deals on your car and home insurance policies, switching to cheaper energy and broadband providers, comparing prices in a few shops online before you buy something, or even moving your savings into accounts with higher interest rates, there’s a lot to be said for shopping around. And, while we’re in lockdown, it’s a great time to do your research and make sure that you’re getting the most from your money.

For example, according to Ofgem, who regulate the energy industry, if you’re on a Standard Variable Tariff right now, you could save almost £200 a year by switching to the cheapest tariff and supplier available. And that’s just for energy! If you shopped around to find better deals on all your bills, just imagine how much you could save. And who wouldn’t want all that money back in their pocket?

Look for voucher codes

The pandemic has prompted more and more of us to shop online rather than in-store. And, with this type of shopping comes another opportunity to save: voucher codes. Before you hit the checkout button, it can be well worth the effort to scan the web for voucher codes that get you a bit of money off whatever you’re shopping for. It might only be a few quid here and there, but it all helps!

If you think this sounds like a cracking idea, but know you’re likely to forget, then you can even get free browser plugins that do the leg work for you, like Honey. You add the plugin to your browser, and as you shop, it’ll work in the background to find voucher and promo codes that you can pop in when you check out, and reap the rewards! Honey reckon they save their members about £95, or 17.92% a year on average - not too shabby, eh?

If you’re entitled to benefits, claim them!

Lots of people assume they’re not eligible to receive any benefits without ever checking their entitlement. And sure, under normal circumstances, they might not be entitled to anything. But, these are anything but normal circumstances!

Even if you’re pretty sure you wouldn’t be entitled to any benefits normally, if your finances have taken a hit because of the pandemic, then you might now be eligible to receive some help with certain aspects of your finances. This could be an income-related benefit like Universal Credit, it could be a one-off payment to help you cover your costs if you have to self-isolate and can’t work from home, or it could be claiming from a scheme designed for parents whose children would normally get free school meals, to help them cover the additional grocery costs that come with their kids being at home all week.

Turn2Us have a great online benefits calculator that can help you find out if you’re entitled to any government assistance, and Citizen’s Advice are a fantastic resource for advice on your entitlements and how to claim.

Returns

One thing lockdown can throw a spanner in the works of is returning items you’ve bought that turned out to be faulty, not what you needed, or in the case of clothes, don’t fit. But, holding onto things because returning them is more difficult or doesn’t seem possible could be costing you dearly.

If you’ve been shopping online and need to return something, then the retailer you bought from should have a returns process that’ll help you send your items back with minimum fuss. Lots of places offer free returns, and even include a returns label, with postage paid, in the delivery papers so all you need to do is tape up what you’re sending back, stick the label on, and pop it in the post. For bigger items, lots of retailers will send a courier to pick the parcel up from your door, at no cost to you, so you don’t even need to go anywhere to sort out a return!

But, what about stuff you bought in-store before lockdown that you now can’t take back because the shops are shut? Lots of places have extended their returns windows to allow for this, but if you want something out of your way and to get your money back ASAP, then it’s worth getting in touch with the retailer’s customer service team or checking their website for advice.