FOOL'S EYE VIEW
How To Become A Richer Couple!

By Alison Hunt (TMFAlly)
August 2, 2005

Did you know that being part of a couple can be good for your finances? A recent report from the One Account has shown that we tend to take a fresh look at our financial situation when we settle down and are more likely to ditch those dud deals in favour of better, cheaper ones?

Couples are more likely to shop around for financial products than single people, and married couples especially are intent on improving their financial situation. And once we start shopping around it seems we will continue to do so in the future, regularly checking to see that we have the best deals for mortgages, savings and insurance.

If you're part of a couple that fancies becoming richer, follow our top tips:

1. Slash those bills

I know two can't really live as cheaply as one, but we can certainly give it a go! Shared phone line rental and other bills certainly help, but to really make savings you need to batter those bills down as much as possible. Take each bill individually and concentrate on reducing that premium as much as you can. Energy bills are on the rise, we've all seen the news stories, so why not consider switching supplier now? A comparison company such as uSwitch can do the donkey work for you and believe that they can save homeowners up to £170 each year by finding them a more competitive deal. If there are just two of you in the home fitting a water meter is bound to save you money. And phone bills can reduce dramatically if you sign up to bargain services such as Call18866, as you can call any UK landline for a connection charge of just 2p.

Mobile phone bills usually take up a good chunk of our disposable income, too. However, if you and your partner don't make many calls it may be worth investigating switching to a couple's tariff, where one line rental is charged for two handsets and the inclusive minutes are shared. Alternatively, follow our top tips to cut the cost of your mobile phone bill.

And don't forget grocery costs when battering those bills. A family or couple can save money by bulk buying those special offers in the supermarkets. Snap up those "buy one get one free" deals and consider buying bigger, not only will you save money, you may be able to get away with less trips each month to the supermarket, too!

Switch suppliers in our Get out of Debt Centre.

2. Cheaper cover

We all know that shopping around can save us hundreds of pounds in insurance premiums. But when there are two of you there are potentially even more savings to be made. Naming your partner on your car insurance policy, for example, will often result in a pretty healthy discount. Why not follow our tips to save £50 in sixty minutes? And a couple's or family type travel insurance policy is always cheaper than two single policies. Aim to shop around and double up on cover where possible. However, the one place that cover is usually worth taking out separately (if you have a family) is life insurance policies, due to the fact joint policies tend to pay out after the first death only, rather than both.

Get a competitive insurance quote in our Insurance Centre.

3. Get the most from your workplace

Never forget about your places of work when trying to save money as a couple. Many companies provide employees with a whole package of benefits which, if used properly can save you money. What's more, they could even save your spouse money, too.

Life insurance (or death in service benefit) for example, is a perk offered by many employers, paying out three or four times your annual gross salary in the event of your death. All very morbid, but if you have dependents you should have this kind of cover. And obtaining it for free for both partners could save you a few hundred pounds each year in premiums. Similarly, critical illness cover and income protection insurance provided by an employer will save more money and some firms will even cover your spouse for free, too. Switching dental cover for both partners through Denplan to the firm your company has a deal with could also save hundreds each year. And even if they do charge to insure your partner with similar cover, check out the cover and prices carefully. The competitive deals offered to large companies for insurance are almost certainly less than they would should you take them out due to the immense bargaining power of a large firm.

As for taxable benefits such as medical insurance, it pays to be canny. As most policies will allow you to add your spouse, cover both partners through the lowest band tax payer's firm. This simple technique can save hundreds of pounds each year!

And if you have young children, find out if your firms offer childcare vouchers. By taking advantage of these tax-free deals a higher rate tax payer could effectively gain up to £1,040 each year - a maximum of £2,080 for a couple!

4. Better deals for your plastic

If both you and your partner have individual credit cards, think carefully about your criteria of use. If you both tend to pay off the balance in full each month, you should consider taking out cards which offer cashback or some other form of loyalty scheme. And if you're both saving up points or cashback, why not do so together? Take out an additional card and both of your spending will be working to rack up that cash or points.

Find a cashback card in our Credit Card Centre.

5. Savings

If both you and your partner have separate savings accounts it may be worth reviewing your interest rates. Many accounts offer tiered bands of interest, meaning that pooling your money (if you trust each other) could result in more interest! Again, you could take advantage of tax bands as savings held in a non-tax payer's name will earn a stack more interest than cash in the name of a higher rate tax payer.

And don't forget your ISA allocations. Everyone over the age of sixteen can save up to £3,000 each tax year into a cash ISA and receive their interest tax free. A couple saving £6,000 into Halifax's ISA Saver Direct (paying 5.15%) could earn £309 each year in interest. This same rate, after higher rate tax would yield just over £185.

Find a better savings account in our Savings Centre.

6. Do you need that extra car?

When a couple moves in together, in addition to the doubling up on many CDs and other belongings, many are bound to find they need two parking spaces. However, how many of us could get away with owning just one car? Not only would this be kinder to the environment, it would save you a stack of cash too. Even the smallest, most economical car will cost at least £1,000 each year to keep on the road - couldn't you find a better use for that money? Or can you at least figure out a way to keep your mileage down and save money there?

If one car is used solely for commuting, have you investigated the possibility of joining a car pool scheme at work? Not only could this save money, some companies will even reward members of such a scheme with a small cash bonus. Alternatively, dust off that bike and you'll get fit too. And for cars only used for the odd run, why not find out if there is a car club in your area? Finally, don't forget about the humble public transport system!

7. Future Plans

Although we all happily spend time working out how much money we can save in the short term, have you ever both stopped to work out what your future goals are? Focussing your minds on a shared goal or two will not only give you something to aim for, it will make you feel even more motivated to save every extra pound! Why not sit down with your partner and work out what your shared goals are for the next two to five years (holiday, new car, new house?). From here you can work out how much money you will need, and then how you can obtain it (our three pot savings idea may help). Then stick to the plan and aim to achieve that goal!

So here are a few tips to help you and your partner save cash, why not give them a go?

> Get better deals on savings, insurance and credit cards.