FOOL'S EYE VIEW
How To Raise £500!

By Alison Hunt (TMFAlly)
July 12, 2005

Ah, money we never seem to have enough. Even those of us lucky enough to receive a pay rise are bound to find that it disappears in double quick time! As for having enough to save or invest, unfortunately for many of us it's a nice idea but our budgets can't stretch to it. Well, if you're willing to put in some time and effort the chances are you'll be able to raise some money yourself and legally too! Why not follow our tips and aim to raise at least £500?

One man's junk is another man's treasure

How much clutter do you have at home? Most households would admit to having an ample amount my husband's a bit of a hoarder so we definitely have our fair share. I'm constantly baffled as to the reason why we need to keep items such as five ancient computers (including a couple of ZX Spectrums, an old Atari console and an Amiga) but my husband looks at me as if I were insane if I mention that we could think about getting rid of them. Though even I have to admit to being topped, as a Foolish colleague's boyfriend actually still has a Betamax video recorder! It must be a male-female thing.

If (unlike me) you can get rid of your clutter, it's worth remembering that your junk could be someone else's treasure so much so that they'd be willing to pay cold, hard cash for it (though would anyone seriously consider paying money for a broken ZX Spectrum?). Check out your local newspapers for listings of any upcoming Car Boot sales and get ready to make some money it may be useful to read up on your rights, first. Alternatively, sites such as Amazon and eBay will allow you to sell those unwanted gifts from the comfort of your computer (and you won't have to get up at 6am on a Sunday, either!).

And for those unwanted items that work perfectly well but aren't worth selling, why not consider giving them away to a good home using Freecycle? This novel website allows you to advertise unwanted items in your local area potential 'collectors' then arrange a time and place with you to pick it up. And don't forget to check out what's available while you're there apart from being environmentally friendly it could save you some money, too.

Raise: £50+

Cut the Cost of Borrowing

If you're paying interest each month on the balance of a credit card have you never heard of a 0% balance transfer credit card? By moving your balance to one of these marvellous entities you could avoid paying interest for up to a whole year (or nine months with no balance transfer fee).

And check out the rate you're paying for your personal loan did you realise that the current Best Buy charges just 5.7%? Move your balance to a 0% card, or switch to a loan from Alliance & Leicester's Moneyback Bank at just 5.7% and you could save a fortune in interest for a £5,000 loan repayable over 3 years this could equate to saving £1,064 over the duration of the loan (depending on your APR). Blimey!

Raise: £100+

You can apply for a number of 0% balance transfer cards, or the table topping loan from Moneyback Bank.

Don't Pay too Much Tax

Raising cash is all very well, but there's a fortune to be saved if you're needlessly overpaying hundreds of pounds each year in tax. Grab your payslip and check that your tax code is correct with this tax code checker and that you're paying the right amount of tax and National Insurance with this payslip checker. Remember, you can earn up to £4,895 before having to pay any tax and non-tax payers must complete and hand in form IR85 to their bank to avoid paying tax on their interest.

Raise: Could be £100+

Shop Wisely (or rather, Foolishly!)

Do you still buy a daily newspaper? Did you realise that you can read most of them for free, online? If you must have the printed version and are partial to a magazine too, check out WHSmith it often has deals that give you a pound (or more) off the price of a magazine if you buy a certain newspaper. And if you're a member of a gym, many provide free newspapers and by exercising regularly you'll be getting better value for money from that monthly payment too.

Raise: £100+

Taking advantage of online retailers is often the key to saving money on larger items. Check out your local stores to find out which model of washing machine etc. you wish to buy, then go home and plug the details into a site such as Pricerunner. It will search through a vast number of online retailers for you and bring back a list of the price that each retailer is selling it for; it'll even factor in delivery. Make sure you check how long delivery will take if the item is needed in a hurry, though. And if you have an Egg card, you will get 5% cashback at Curry's online.

And even more money could be saved by using the Clearance-Comet site, which allows you to bid for end of line, ex-display or imperfect models from Comet stores.

Raise: £50+

Apply for an Egg card in our Credit Card Centre.

Get Cheaper Cover

When did you last review those insurance policies? If you've had a renewal form through the letterbox recently, it's an ideal opportunity to save some cash. Follow these tips to save money on your motor insurance and phone around for that house cover. Remember to always ask if that is the 'best price', you can often squeeze another 5-10% out of an eager sales person. If there's a particular company whose cover you'd prefer, make sure you inform itof your cheapest quote; you may find it will match it. Egg currently offers up to 15% off home cover (25% if you pay with an Egg card) plus free travel insurance. If time is of the essence, take advantage of insurance brokers; Fool Partner The Idol can often obtain a highly competitive quote for a few minutes work.

Raise: At least £50

Find out more in our Insurance Centre

Use your Space

If you want to raise some serious cash and you have the space, consider taking in a lodger. You can earn up to £4,250 each year with the Government's Rent a Room scheme, even if you're not a homeowner (as long as your lease allows it).

Switch Bank Accounts

If your bank doesn't provide an excellent service, switch to one that will. Not only could you save a fortune in overdraft fees, you could earn up to 50x more interest you could get rewarded, to boot. A number of Banks are keen to attract your custom and some will even give you cash for moving. Smile and First Direct are both offering £25 to new customers; Lloyds TSB doubles this at £50 and if you move to Alliance and Leicester you could be given a whopping £75, provided you're recommended by an existing account holder. Find out more in earn £50 in five minutes.

Raise: £25+

Find out how easy it is to switch and apply for a current account with First Direct or Alliance and Leicester in our Online Banking Centre.

Miscellaneous

Are you paying by direct debit where possible? Energy companies will often give a discount of 10%+ and it is believed that we could save up to £187 each year by using this automated service. Remember to check your bank statement are any old direct debits still being taken from your account which should have been cancelled months ago? If you really cannot be persuaded to use the gym, cancel your membership and do you really need all of those satellite channels? Aim to pay less for your bills and find a cheaper deal for your mobile phone. Why not try some of these money saving tips, and if you've really got a taste for 'raising cash' you could always try extreme budgeting!

Raise: £50+

These tips could help you to raise a few hundred pounds, simply by being canny with your cash and getting rid of unwanted items. Now, why not make your newly found money work as hard as possible by stashing it into a cracking cash ISA or super savings account?

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