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Consider Group Buying Deals For Financial Savings

by Jim ONeil on July 14, 2011

in Personal Finance Tips

According to recently published research, it costs more than £5,000 more per year to live alone than with another person. This substantial gap is increasing due to the rising cost of food and increases in electricity and gas prices.

Housing Minister Grant Shapps recently encouraged lenders to provide mortgage deals to groups of people pooling money for home deposits.

Web sites like Groupon offer discounted prices to consumers engaged in group purchasing. Those who are most money-conscious can gain additional savings by taking the same approach to other financial aspects of life.

For example, generations in the family usually have the same financial goals but establish finances separately. They could instead combine resources and use trusts and tax allowances to establish a tax-efficient financial strategy.

A group of investors can pool retirement savings in a family Sipp. Investors draw a pension during retirement and surplus funds are provided to surviving Sipp members upon death of another.

Lloyds Banking Group permits up to four friends to purchase a home together but takes into account income of only two of them when determining the mortgage limit. Britannia does the same but takes all salaries into account.

People can also pool their finances using offset mortgage loans. Savings offsets the mortgage and interest is paid only on the difference. Since debt interest rates are much higher than deposit rates, substantial savings can be realized.

Nearly a half-million people already have this type of mortgage, saving thousands of dollars.

Group buying deals like those offered by Groupon, Groupola, and Living Social save consumers up to 90 percent. Membership is free and credits are earned when a person recommends deals to others.

Current deals include beauty treatments, cinema tickets, dining, local attractions, and hotels. By working together, groups can save money in these and many other ways.

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