The cost of living has been rising across the UK since early 2021. Now in 2022, with rising cost of food, energy and fuel prices, it is said to be affecting 9 in 10 adults across Great Britain. Below are some suggested pointers for your employees who could be affected by the rise or looking at ways to save money.
Cost of living – What can I do?
It is important to start at the beginning and understand your financial situation. A good place to start is with a review of:
- your current outgoings
- payment commitments
- cost of travel
- incoming payments
- discretionary or non-essential spending such as subscriptions, eating out and entertainment
If applicable, it is a good idea to check your benefits entitlement, such as eligibility for the Government’s tax-free childcare scheme, tax credits and free school meals.
Once you understand your current situation, look to create a budget. There are a number of useful apps, templates and information available on the internet to help you and many are free. This is a good one with advice on areas to consider: https://www.moneysavingexpert.com/banking/budget-planning/
Ways to consider reducing spending or outgoings:
This section gives you suggestions on ways you could reduce your spending, in a very competitive climate, being ahead of the game and planning in advance could save you £££‘s.
- Cancel subscriptions that are not essential, magazines, media etc.
- Look into greener ways of travel. Could you cycle to work and reduce your use of the car? Many Boroughs have different car sharing schemes, for example Wiltshire: https://liftshare.com/uk/community/wiltshire
- Know when policies are up for renewal, for example, your car, home and contents insurance. Shop around using price comparison websites. Some sites offer free products too.
- Look at effective ways to reduce your energy usage, simple changes can save you money. Draft door excluders, stopping the use of a tumble dryer, washing clothes on a cooler wash. Visit energy saving trust website for more ways to save: https://energysavingtrust.org.uk/hub/quick-tips-to-save-energy/
- Buy second hand or shop around. There are a number of online shops you can use but remember to check the company out first. You can do this by researching reviews on such websites as Trustpilot - uk.trustpilot.com
- Sell unwanted items, using website such as eBay, Gumtree, Vinted or Facebook Marketplace to get money for your unwanted goods.
- Compare product prices at different supermarkets. For example, if you enjoy a particular brand of washing powder and have seen that the price has increased, have a look online and compare the other supermarkets. It may save you money to buy it from a different shop. You can also see the offers the different stores have on.
- Using loyalty cards or coupons/ vouchers could save pennies- which could soon add up to £’s.
- Compare different providers, TV and Broadband being the top money savers, along with mobile phone plans. If there is nothing wrong with your current mobile, then simply swapping to a SIM only deal can reduce your monthly commitments quite a lot. Also, keep an eye out for contract terms, 12 or 24 months, find one that suits your budget and your future needs.
- Review current credit cards deals. If you already have a credit card then knowing when your 0% terms are due to end means you can plan in advance to prevent you being charged any interest.
- Company Benefit portals. Does your Company offer access to discount websites? These are websites where you can get codes or purchase vouchers in order to save £’s. Some offer trips, days out, restaurants, as well as in shops.
There could be times when you are just not able to balance the books and having a regular review of your budget and outgoings means you will know in advance. If you’re worried about debt, you don’t need to struggle alone. You can speak to a trained and experienced debt adviser about your situation through Money Helper. Money Helper is a free service provided by the Money and Pensions Service. https://www.moneyhelper.org.uk/en/money-troubles/dealing-with-debt/debt-advice-locator#
With the winter months coming and along with it the colder weather, you could be eligible for extra help with energy bills, visit turn2us website to understand ways that could help you. https://www.turn2us.org.uk/Benefit-guides/Energy-schemes/Extra-help-for-2022
It is also important to look after yourself and your own mental health. If you are feeling low and need someone to talk to, contact Every Mind Matters: https://www.nhs.uk/every-mind-matters/ or Mind: https://www.mind.org.uk/information-support/guides-to-support-and-services/crisis-services/helplines-listening-services/ Both these charities offer support and guidance on how to boost your mental health.
Other charities that can help you in different ways:
- Turn2us – Fighting UK Poverty: https://www.turn2us.org.uk/
- Step Change Debt Charity: https://www.stepchange.org/
- Money Advice Trust: https://www.moneyadvicetrust.org/