With the cost of living spiraling out of control, an increasing number of people are struggling to make ends meet. Taxes, inflation and energy prices are all skyrocketing at the same time, but people’s wages are standing still. It’s bad news.
However, in any crisis, there are winners and losers. In this post, we take a look at some of the ways that you can beat the cost of living crisis this year and maintain a decent standard of living.
Insulate your home
If you haven’t insulated your home yet, you are missing a trick. With energy prices going up by 50 percent, it’s critical that homeowners do whatever they can to prevent heat loss from their homes.
There are several ways that you can do this:
Insulate your cavity walls
Install double glazed windows
Insulate your attic and roof
Buy a heat pump
Fit your windows with infrared-reflective films
House share with friends or family
Another option is to skip paying rent and bills entirely and live with family or friends if possible and convenient. Yes, they might charge you a small monthly fee for your living expenses, but they will be nothing compared to the cost of going it alone.
Improve your financial literacy
Simply understanding how money and savings work can be a great way to side-step the current cost-of-living crisis. Knowing where your money is going and how you are using it shows you the areas of your life that you need to change or improve.
Once you understand how investing works, you can also put your cash into assets that inflation can’t eat away at. Instead of just leaving it in the bank to lose value, you could plow it into stocks, shares and other investment vehicles.
Build up a strong credit score
Having a good credit score is essential in the modern economy for anyone looking to take out a contract or a loan. If you have a decent rating, you can often get access to the lowest interest rates. This could then save you money on your mortgage, car loan or personal loans.
Cut out anything that doesn't serve you
Take a look at your monthly outgoings and ask yourself whether there is anything on the list that doesn’t serve you. If there is, get rid of it.
For instance, do you have online subscriptions that you rarely, if ever, use? Are you paying for club memberships that aren’t offering you much value in return? Get rid of these to free up cash you can use for other things.
Shop around for the best deals
Just because the price of everything is going up, it doesn’t mean that great deals are unavailable. It’s just a question of finding them. Shop around for everything that you buy, from groceries to credit cards. Use price comparison websites to find the best deal on home, travel and car insurance, and switch energy suppliers if you see one offering cheaper rates. Remember, you can even price-compare on things like gym memberships and home broadband.
Thank you so much for reading. I hope this helps you find ways to help during this difficult financial time.