The cost of living crisis refers to the current economic climate where the prices for essential goods in the UK have risen faster than household income – resulting in a fall in real income.
According to the Office for National Statistics, 77% of adults reported that they were feeling worried about the rising cost of living, with 52% having to cut back on their energy use.
This article will outline five top tips that you can follow to help you to overcome the financial burdens of the cost-of-living crisis.
1. Look for cheaper insurance deals
Certain monthly payments, such as mortgages, rent or council tax are likely to be fixed, meaning that there is not way to reduce them. As such, you should turn to switch on your annual insurance policies, such as your home, car or phone insurance.
This involves spending time shopping around for the best deal that will suit you, making sure that you have compared costs instead of auto-renewing on the same deal with the same provider.
Switching on these insurance deals is both a quick and easy way to help individual households save hundreds of pounds each year.
2. Spring clean on your subscriptions
It is worth taking a look at current subscriptions and services that you are paying either monthly or annually for. Canceling ones that you no longer use can be incredibly cost-effective.
An efficient way of doing this is to request for your bank statement and go through all of the standing orders that leave your account.
Even canceling just one or two may save you hundreds of pounds a year.
3. Check to see if you are eligible to claim any specific benefits or grants
If you are based in the UK and earn below a certain minimum threshold as a household, then you may be entitled to income-related benefits or grants.
Make use of this free calculator from the UK Government to check eligibility. It requires only a few key details and takes under 10 minutes. Doing so could help you to pay towards utility bills and save your income or other household needs and expenditures.
4. Take advantage of supermarket discounts
There are a few ways you can reduce costs in the supermarket, one of them including making use of their free loyalty app. These apps allow customers to easily scan their shopping and collect points. These points can then be redeemed against their next shop or particular items, helping the costs to fall.
Furthermore, when shopping in person, always be sure to go to the reduced section of the shopping aisle before commencing your shop. This is because it may have discounted produce that was already on your shopping list, helping you to save.
4. Download budgeting apps
There are a number of budgeting apps that are easily available on mobile devices that can help you to manage your finances a lot easier.
The selection even includes your own bank’s free app, which can help you to keep track of your spending while on the move. Additional apps such as Monzo and Snoop also help you to budget and keep track of your outgoings, helping you to reign in spending on certain areas.