The cost of living is rising rapidly in the UK, putting extra strain on family finances. Finding ways to maximise your income has never been more important. This guide provides tips on how to boost your family’s earnings in 2024 through reviewing household bills, maximising tax reliefs and allowances, finding extra work, and more.
Review Household Bills and Look for Savings
One of the easiest ways to free up more money each month is by reviewing all your household bills and outgoings to identify any potential savings. Look closely at your utilities, phone/broadband, TV packages, insurance policies, subscriptions, and finance agreements. Research deals, switch providers, haggle for discounts, and cut out any unnecessary expenditures.
Even small savings on regular bills can quickly add up over the year. Apps like Emma can help you get a full overview of spending and optimise bills.
Make the Most of Tax Allowances
As a family, you may be eligible for certain tax allowances that can boost your net income. Ensure you are claiming child benefit, child tax credits, and working tax credits if applicable. The marriage allowance allows one spouse to transfer £1,260 of their personal allowance to the other if they earn less. The trading and property allowances let you earn up to £1,000 from these sources tax-free annually. Claim pension contributions relief and check you are on the right tax code.
Look for Unclaimed Benefits
Billions of pounds in means-tested benefits go unclaimed each year. Use an online benefits calculator to check if you qualify for support like universal credit, housing benefit, council tax reduction, disability/carer’s allowance, or pension credits. Update claims if your circumstances change to maximise entitlements. Non-means tested benefits like child benefit and disability living allowance are also there if eligible.
As well as means-tested benefits, there are other allowances you may be able to claim, too. For example, foster carers can claim a fostering allowance, which helps families afford the additional costs of fostering a child. Check the fostering allowance calculator to see how much you could earn.
Generate Extra Income
Consider ways family members can earn extra money on top of their main incomes. Things like taking on a part-time or temporary job, monetising a hobby, renting out parking spaces/storage or spare rooms through platforms like Airbnb, signing up for mystery shopping/market research, or starting an online shop can all help. Older children may be able to get a weekend job or do babysitting/tutoring. Selling unwanted items is an easy way to declutter and make cash.
Save on Childcare Costs
Childcare is often one of the biggest expenditures for families. Options include finding a cheaper nursery, childminder, or afterschool club, sharing care with another family, asking grandparents to help, or using tax-free childcare. Also, look at whether it’s cheaper for one parent not to work and be a stay-at-home parent instead. This may be the case if you have more than one child under 5 and your partner is on a low wage.
Getting savvy with your family finances involves looking at ways to reduce bills, maximise allowances and benefits, generate extra income streams, and minimise childcare costs. Putting in some time upfront can reap rewards that boost your annual income substantially.
