With living expenses increasing and wages not matching up, millions of people across the UK are currently struggling to cover essential household costs.
This is a result of inflation.
To cope with this, people are cutting back (even on essentials such as food), using credit cards and buying clothes at second hand value.
Even as temporary support are announced by the UK government, it doesn’t seem like things are going to get any easier.
According to reports, energy bills have increased by an average of £700 a year and council tax payments are on the rise.
So, how can you come out of this situation victorious?
There are plenty of helpful tips out there but below are 5 ways UK citizens, students and residents can deal with the cost of living crisis which you might not have come across.
Number 5 is my favourite, *wink wink*
5 Ways To Deal With the Cost of Living Crisis in the UK
1. How Can You Improve Your Income?
To me, improving your income is the most important way to beat the cost of living crisis or inflation.
The more you earn, the more spending power you have and the more you can save and invest.
A few of the ways you can do this is to;
- ask for a pay rise
- consider opportunities for promotion
- look for another job with better pay or a second job
- work overtime
- improve your knowledge/experience through online courses
- sell annual leave
- find a side hustle
2. Identify and remove your spending triggers
Are you aware of your spending triggers?
It could be a place, emotion or person that makes you break your budget or spend more money than you would usually.
For some people, they spend more because they want to keep up with their friends. For others, they spend more money when they are emotional or bored. It is vital to understand your spending triggers so you can manage your money effectively.
A few ways to tackle your spending triggers are
- studying your spending habits
- ask yourself why
- pay attention to your emotional spending cues
- keep track of your money
- place a limit trigger of your spending every month
3. Maximise Government Help and Grants
Government help and grants are more widely available than you think.
According to this research, there are around £15 billion a year goes unclaimed in means-tested benefits in 2020.
Visit this link to see if you’re eligible for any.
This means that you and I can be benefactors of extra help to alleviate monthly expenses. This includes cheaper utility deals, council tax reductions and more.
Anna Stevenson, senior benefits specialist at Turn2Us, says: “There are many different benefits you may be entitled to claim and, depending on your circumstances, you could access extra help that provides a much-needed income top up. This includes low-cost water or broadband tariffs, help paying travel costs for medical appointments, free school meals, and healthy start vouchers for your children.”
For example, the government offers new mothers a one off £500.
You can use this Virgin Money calculator to see if you could claim extra support. This is particularly for low income households.
4. Haggle with your providers
You always want to make sure you’re getting the best deal possible.
More than eight out of ten hagglers have slashed bills with big-name companies such as AA, Admiral, RAC, Sky and Virgin Mobile, according to consumer site MoneySavingExpert.
Last year, I tried to change my internet providers because I saw a better deal somewhere else and my providers offered me a discount to continue staying with them.
This told me there’s always room for negotiations.
You’ll probably be put through to the ‘customer retentions’ department. Ask if they can match or better a deal, and whether any extras can be included such as cashback, TV channels, or breakdown cover with your car insurance. If you’re not happy, try calling again another time – don’t give up the first time you try!
Here’s a useful article from the Sun detailing 8 ways of haggling with providers to save hundreds.
5. Take One of My Investing Workshops
To better protect yourself from future cost of living crisis, you have to make your money work for you.
Investing is an effective way to have your money work for you and build wealth. Holding cash and bank savings accounts are considered safe strategies but inflation devalues it over time.
Investing your money allows it to grow exponentially.
Smart investing may allow your money to outpace inflation and increase in value. The greater growth potential of investing is primarily due to the power of compounding and the risk-return tradeoff.
This is where my workshops come in.
I will teach you how to use the stock market to protect your future from further cost of living crisis and use it to meet living expenses.
At the end of each workshop, I work with my clients to identify good money habits and develop a 5 year investment plan.
Visit this link to find out more about my different workshops and register.