As the cost of living increases in the UK, householders need to look carefully at their personal finances and look to see where they can save money. Read on to find out five ways you can save money as the cost of living increases:
Rise in the Cost of Living
There are a number of factors to blame for the rise in the cost of living. We’ve faced a difficult few years between Brexit, the pandemic, inflation, the increase in energy bills, and the end of Covid support schemes, which have left many feeling concerned.
Nimesh Shah predicts that:
“A family of four with one working parent earning £62,000 will be £649 worse off a year from 2022-23 than in 2010-11, with all the tinkering to rates, allowances, and thresholds.”
Source: Financial Times
Meanwhile, 5.5 million families across the United Kingdom, who had benefitted from the temporary £20 per week Universal Credit increase in are now facing living on £1,040- less a year off due to the cut.
5 Ways to Save Money as the Cost of living Increases
1. Cut Down on Subscriptions
Take a good look at your monthly bank statements and check if you have any unnecessary direct debits, standing orders, or subscriptions going out. If they’re no longer needed cancel them. It’s important to check this fairly frequently as it’s so easy to take out a free trial and forget to cancel before the money starts leaving your account. Or perhaps you added a few extra entertainment or education subscriptions during the lockdown and homeschooling that are now no longer needed. If you also have a PayPal account go into settings and check your “Payments” and manage your subscriptions and recurring payments from there. There are also apps you can download to help you take control of your subscriptions.
2. Shop Around for a Better Deal
There are some monthly payments that you can’t cancel but you can always shop around or negotiate a better deal. If you ring up your phone, TV, and internet company explaining that you need to move to a cheaper provider, they will often offer you a better deal to tempt you to stay as a customer. I know generally, we Brits don’t like haggling but it’s worth a try when savings are to be made.
If you are still paying off any debts, you can also offer your creditors a reduced sum to pay off your debt, rather than the full amount you owe. This is called a “full and final settlement offer” and can save you money in the long run.
3. Save Money on Your Shopping
Saving money on your weekly shopping can be difficult. You may have already switched to your own supermarket brands and cut down on buying non-essentials. Use online shopping to check if you could save even more money by switching to a different supermarket. Saving pennies on each item soon adds up in a trolley full of shopping. When food store adverts and vouchers get sent to you, take a good look and use them if you can. Monthly and weekly meal planning, especially on a rota, will enable you to keep the food costs and waste down. Buying special offers and cooking in bulk also saves money.
4. Use Comparison Sites
There are certain insurances that you legally have to take out, such as car or van insurance when you own a vehicle. Don’t stop these policies but do shop around for cheap van insurance to save money. It’s tempting to stop additional insurance policies when you’re needing to cut down on spending. They can be an expensive business. However, it’s important to keep these in place. Instead of cancelling, use an insurance comparison site, such as Protect Your Family to help you save money in every part of your family life from motor insurance to home insurance. This way, you have the reassurance you need, but at a lower cost.
5.. Save Energy
Household fuel bills were already rising sharply before Ofgem increased the energy price cap on October 1 and aren’t likely to fall until well into 2022. Save energy by only heating the rooms you use in your home. Make sure your roof is insulated and windows are double or triple glazed. Find out if there are any energy grants available to help you save energy. You could be entitled to a boiler upgrade or even solar panel funding.
These are worrying times with the increase in the price of living. Keep calm and think of ways to save money to offset this increase. If you are worried about money please contact your local Citizens Advice Bureau.
Click here if you’re worried about getting less Universal credit.