The UK is, along with much of the world, in the grip of a squeeze on living costs. Inflation has been sky-high for months on end, and interest rates have been biting. If you’re at the bottom of the economic scale, then things might have been really, really tough.
To explain this, we might point to the things that governments, businesses, and individuals have done, or failed to do. But this doesn’t tell us much about how we can cope with the situation.
Practical tips
There are five key steps you might consider when dealing with spiralling costs.
Create a budget
A good first step is to come up with a budget. It should seek to identify your areas of frivolous spending, and limit them. Your budget should be easy to understand, and flexible enough to change alongside your circumstances. You might find specialist apps to help you tackle the problem, or you might use a spreadsheet, or even just pen and paper.
Negotiate bills and use discounts
Getting those discounts doesn’t just mean keeping your eyes peeled. You might also look to shop for items in bulk, especially when you know that the entire household is going to be making use of them. So, you might buy a big bag of rice rather than a small one. If you have several drivers in the household, you might look to save money on your car insurance with the help of a multi-car policy.
Reduce energy consumption
The amount of energy you consume really matters. This has been especially the case in recent times, when oil prices have been extremely high. You might cut costs by swapping out your old light bulbs for more efficient LED ones, but by far the most effective savings are going to involve your boiler. Take shorter showers, turn the thermostat down, and invest in a smart meter so that you can monitor your spending over time.
Shop smarter
The prices at your local supermarket will, over the past year, have risen sharply. But the price hikes aren’t spread uniformly across all goods. Certain items, like rice, won’t be all that much more than they were a year ago. Others, like dairy, have skyrocketed. Shop around, seek out the bargains, and if you spot something that’s heavily discounted, and can be frozen, buy it up.
Cook at home
If you’re eating out all the time, or getting takeaway every night, then you’re going to end up spending way, way over the odds. Learn to cook, and avoid this problem. There are loads of simple recipes you can follow to get started.
Coping with the cost-of-living crisis requires a willingness to make the necessary changes. Every small step you take towards financial stability contributes to a more secure future, and we hope these simple tips help you reach this stability.
