Thrifty Homeowner

Given the state of the economy and rising cost of living for many households, saving money is a hot topic at the moment, especially with traditional spending hotspots on the horizon like Christmas.

However, with so many so-called experts offering their opinion on how to slash your spending, it's difficult to know who to listen to. So we've put together a handy guide on the things you shouldn't do to try to save money – which, conversely, should actually put a few quid in your wallet as a result.

1. Don't cut back on your insurance
When you're up against the wall financially, insurance can seem an easy way to cut money from your budget instantly. Although central heating insurance may sound like an absolute essential, recent research has suggested that as many as one in five are going without contents cover, largely as a result of the recession. However, this can have dire consequences – suffer a burglary, flood or fire and without cover, you'll be left high and dry.

2. Don't hire cheap tradesmen
If you find a plumber, electrician or builder whose rates look too good to be true, they probably are. However, there are ways to still get repairs and maintenance done cheaply through having the right type of insurance. For example, get boiler coverage and you'll be able to call on a fully qualified tradesman to carry out the work. In many cases, you'll only have the excess to worry about, a fraction of the cost of the callout fee for many tradesmen.

3. Don't leave car problems to fester
When money's tight, it can be easy to ignore what you believe to be a small problem with your car, keep calm and carry on. However, minor rattling in the gear box or a stiff lock can develop into bigger problems if they're not given the attention they need. So head to the garage and nip them in the bud sooner rather than later.

4. Don't wait until the last minute to book your holiday
Although is common advice for holidaymakers to wait until up to a week before a holiday, this isn't always the best way to save money. Not only will it reduce the types of destinations you go to, but you're also likely to be more desperate – and up paying a little extra to secure your break as a result. Therefore, it's worth going the other way and booking many, many months ahead – the prices at these times can often rival even the best last minute deals, with the added bonus of a wider choice of destinations.

5. Don't spend too much on renovating your house
Although this is a common way to boost the value of your home, especially in a depressed market, don't go overboard. With house prices still expected to continue falling, the value you add to your home could be swallowed up by the general state of the market – a position no one wants to be in.