Spring is associated with rebirth, rejuvenation, renewal, regrowth. As millions around the country are still dealing with the devastation of the Covid pandemic, the price of everything is soaring. Energy prices and inflation are rising, so spring may not be the time for new beginnings in some households.
As a result of the UK cost of living crisis in 2022, an estimated 1.5 million households across the UK will struggle to pay food and energy bills over the next year. The National Institute of Economic and Social Research (NIESR) predicted the UK will fall into recession this year and The Bank of England has warned inflation might reach 10% within months.
How to beat the rising cost of living
If you have not already considered these, the following tips may assist with spring cleaning your finances and hopefully soften the blow of rising bills. Small cuts in lots of places can be a less painful way to improve your finances. While making huge cuts to a few areas of spending could significantly ease the cost of living squeeze on your finances, they could also have an unacceptable knock-on effect on your quality of life and take a heavy toll on mental and emotional health.
- Know what you’re spending and on what.
- Spring clean your current account and credit cards, with shopping contracts, subscriptions, direct debits, memberships and standing orders you no longer use at the top of the list.
- Look at your calendar at who is celebrating a birthday, baby shower, wedding or occasion this month so you can plan accordingly. Join retailer rewards schemes and family deals for streaming services as well as comparing prices online and searching for discount codes.
- Cut back on everything from unwanted snacks and unopened ready meals to that takeaway coffee. If you are a takeaway breakfast person too, that’s another £3.50 every time! You don’t have to forgo but perhaps consider cutting back on how often you buy them.
- Shop strategically - timing your shopping could save thousands over a typical year as shops discount products at the end or beginning of a shopping day or week.
- Consider switching major financial products. It’s time to look again at how much you’re paying for insurance, energy, broadband, mobile contracts, landlines and your mortgage.
- Claim everything you are entitled to. You can use the Citizens Advice benefits calculator Benefit calculators: what benefits can you get - Citizens Advice to work out if there is any help you could be claiming.
- Don’t ignore debt. Ask for help if you are struggling. Money troubles can have a serious impact on our mental wellbeing. If you are feeling stressed or worried about your financial situation, it is important to know that you are not alone and there is help there.
Knowing what you’re spending your money on is what makes you more likely to be naturally smarter about that spending. It does not need to be complicated, there are plenty of apps out there that can assist or go back to the good old fashioned pen and pad for three months and you may be surprised at a few changes in behaviour may rejuvenate your finances after all.
Don’t ignore the problem – we can help
There is no debt problem that is not fixable with the right support. If you’re struggling to keep up with bills, take initial debt advice as soon as possible. Our dedicated and experienced team at FD Debt Solutions are here to help so do get in touch if you’d like a no obligation chat.