Disclosure: This is a collaborative post about the cost of living crisis
The past few years haven’t been too easy on the majority of us. Many of us have found ourselves facing challenge after challenge. Most of them being completely out of our hands and our own control. We started out with the coronavirus and Covid-19 pandemic. Many of us were confined to our homes. We were also unable to head into our usual workplaces in a bid to slow the spread of the virus around the world. Many companies were unable to operate in these conditions and government grants weren’t sufficient to keep them afloat. Which meant mass redundancies and widespread company collapse. Many of us found ourselves out of work and struggling.
Since then, there have been major economic issues. Some stemming from the Russo-Ukranian war, but most stemming from poor government policy. This has resulted in a cost of living crisis. The price of fuel, energy, food and countless other basic essentials have started to rise and many of us are finding that our wages aren’t keeping up with inflation. The result? A lot of struggle. The good news is that, for many of us, there are a few steps that we can take to help ourselves during these trying times. Here are some that could help you out.
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Rent or Mortgage Costs – Cost of Living Crisis
Interest is at an all time high, which means many landlords are raising the rent price on their rental properties. Those with mortgages are going to find that their mortgage has become more expensive. The cost of housing is high and many of us are finding that this can be difficult to keep up with. If you were already living in a home that maxxed out your budget, you may have found that these increases have made your home no longer affordable.
For renters this may be an easier situation to get out of than if you are buying. If you are renting, check when your contract comes to an end. You may want to consider moving into a lower cost property. Perhaps something smaller or in a different area where prices are reduced. If you are buying your home, you may want to speak to a mortgage advisor. They can make recommendations on whether now could be a good time to sell and move.
Car Costs
The price of fuel is on the rise, which means that it’s proving more costly than ever to run a car. On top of that, there are supply and demand issues. Which means it’s more difficult to get cars into the country waiting times for new cars are longer. Many of us are finding that the price of our car finance agreements or lease agreements are rising too.
Now is the time to try to reduce car costs. If you plan to keep your car, you should compare insurance providers to determine which is offering the lowest cost policy. You may find that there are other providers out there who are offering a lower monthly premium. This can save you a lot in the long run. Switch to them. If you’re struggling to keep up with your car in general, now may be the time to sell or return your car. Then opt for public transport instead. Sure, this might be more difficult in the winter months, when there are more delays and it’s colder. However, you will find things a lot more cost effective, as well as easier when the spring comes around.
Energy Costs
The price of energy is perhaps one of the biggest hits that we’ve all taken. Energy companies are reaching all time profit levels, meaning that the price of heating our homes and fuelling our homes is skyrocketing. There are a few ways that you can try to minimise your home energy bills in the upcoming months. Sadly, there’s not much point looking into switching suppliers. This is because all companies are generally operating at the increased energy cap, meaning you are likely to be charged the same by all of the different options. Instead, you’re going to need to look at conserving energy instead.
It is important that you do stay warm during the winter, for the sake of your health and comfort. It’s best not to completely turn your heating and hot water off if possible. Instead, look at the best ways to use it. You may find that only having your heating on at certain times of the day helps. Many people are choosing to wrap up extra warm at night and sleeping without the heating on full blast. You could also invest in a few warm essentials, such as hot water bottles, oodies, blankets, fluffy socks and more. Having an insulated home is important too. Insulation will help to keep the heat in, preventing loss through key areas such as windows and the roof.
Food Costs
Unfortunately, the list of areas that are increasing in cost currently feels neverending. Food features on this list too. You’re going to have to become more savvy with your food shopping nowadays, so take some time to make sure you’re only buying what you need. Create a meal plan and a corresponding shopping list. This will ensure you only pick up items that you genuinely need to create the meals and snacks you are going to eat through the week. Choosing frozen and tinned options can prevent wastage, as these tend to have a longer life on them. Where possible, look for bargains and discounted prices. You may want to start choosing own brand or unbranded alternatives rather than the branded options. Keep an eye out for yellow sticker or discounted goods too. Just make sure to eat or freeze them within their best before date.
Seek Financial Advice During The Cost Of Living Crisis
There are plenty of free financial advice sources out there, such as Martin Lewis. These tend to take the form of blogs, websites, podcasts and more providing financial advice that can help you through these difficult times. You could also use a professional financial advice service like those on offer at financialadvisers.co.uk for advice that is more specifically tailored to you, your personal finances and your individual needs. Proper financial advice can help to highlight where you can spend and where you need to save. It will give you guidance, as well as confidence that you are making the right decisions during these difficult times.
Seek Support With Your Debt
If you have debt, now can feel particularly different. As we briefly mentioned earlier, interest rats are increasing, which means debts are growing and becoming more difficult to tackle. Start by seeing whether you can balance transfer any of your debts onto interest free cards or accounts. Some companies will offer an interest free period, allowing you to chip away at the actual debt, rather than simply paying interest.
You may also want to consider debt consolidation loans, which put all of your debt in one (ideally low interest) place, making repayments more manageable and easier to organise. If you’re struggling to keep up with any bills or debts, contact the provider or lender. They may be able to set up payment plans to prevent you from sinking into further trouble. What’s most important is that you don’t bury your head in the sand and try to ignore debts. They won’t just go away and you don’t want to end up with bailiffs at your door.
Hopefully, some of the advice outlined above will help you during these difficult times. Different steps will help different people, so see which apply best to your and your own situation and try implementing them into your routine and lifestyle.