UK inflation has hit its highest rate in 40 years as the cost of living crisis worsened. Despite trying to make savings wherever we can, households are being squeezed for every single penny. Prices are rocketing, interest rates are rising but wages aren’t. As an award winning UK Moneyblogger and Consumer Champion, I’m well versed in how to save money, find help and cut the cost of living in the year of the squeeze. Here are 7 ways to do so.
Ask for help
This might sound obvious but not everyone feels that they are eligible for help and therefore don’t ask for it. Free independent advice for anyone experiencing financial difficulties is available from Citizen’s Advice, the Stepchange Debt charity, Money Helper and National Energy Action.
British Gas also provides energy advice and support to people struggling to pay their bills regardless of whether you’re with them or not. Whether it be energy, telecoms or mortgage repayments it’s really important to communicate any issues timely to your service provider. Many have specialist support teams and will work with you to work out affordable payment plans and reduce your bills.
Further support and help is available from National Debtline, Turn2Us and Shelter England.
Check eligibility for financial support
The Priority Services Register is a free support service for those who are vulnerable and in need of support. Your energy company needs to add you to the register but it is free to do so.
The Household Support Fund helps households most in need and is available until March 2023. Contact your local council to find out more and apply for the fund.
The Help to Save scheme provides low-income earners claiming universal credit or working tax credit with a savings boost. You can apply online or call HMRC on 0300 322 7093.
Full details of all benefits and grants you could be entitled to are readily available on the Citizen’s Advice website.
Calculate, monitor and reduce your energy usage
Monitoring, calculating and reducing your energy usage is more important than ever. Do a home energy audit. You can’t make changes to your energy usage to save money unless you know how much your electrical appliances cost to run. This handy table from the Centre of Sustainable Energy shows what it costs to run a wide range of household appliances.
The Citizens Advice website also has an online calculator for working out usage costs for your appliances and leading UK Moneyblogger Thrifty Chap has complied a handy guide of ‘how much does..cost?’ on his blog.
Financial educator and coach Martha Lawton has created a calculator spreadsheet for those of us that don’t do maths.
Change your habits
If you want to upgrade household appliances such as your TV but are worried you can’t afford it, consider pay weekly TV rentals with affordable payments suit your budget.
Consider how you travel. It could prove far more practical and economical to cycle to work. This could save you hundreds of pounds on your daily commute. There are even schemes to help with initial costs. What is the Cycle to Work Scheme and how can it benefit you – and your pocket?
Whether it be a savvy supermarket switch, a trial of own brand products or routine price checks, changing your shopping habits could make a real difference to your grocery bill.
Use price comparison websites such as trolley.co.uk and priceable.co.uk to easily compare grocery prices, discounts and multibuy offers across a range of supermarkets. Google shopping searches are also useful when tracking prices for just about anything. Just click on the tab at the top of the page under the search bar.
If possible shop on a ‘need to buy’ basis. Plan meals, make a list and stick to it. In order to establish your needs and wants, put 5 items back at the end of each shopping trip.
Substitute your favourite branded products with retailer own brand products. Premium price does not necessarily mean premium product. There are serious savings that can be made if you’re happy with your switch.
Change the time that you shop in order to pick up yellow sticker discounted produce.
Get a water meter
You can’t change water provider to cut costs as the sector is privatised so not open to competition. However if you don’t already have one then a meter might just save you money. The rule of thumb is if you have more (or the same number of) bedrooms than people then it’s worth checking out. Use the calculator from the Consumer Council for Water to see if you can save money by getting one.
Try food sharing apps
Despite over 8 million households estimated to be living in food poverty the UK throws away around 9,5 million tonnes of food waste per year.
There are several apps that help reduce food waste and save money in the process, one of them being Olio. If you have surplus food that you don’t want to throw away, just list it on the app so someone who can make use of it can collect it locally. Anyone can use this type of app. Try it today and share more, waste less?
Alternatively track, organize and manage the food in your home with the No Waste app. Check what food you have left, see what you need to use first, plan meals, create shopping lists, avoid unnecessary purchases, reduce food waste and … save money!
Create a budget that works for you
You can’t begin to look at how to save money unless you know how much is coming in and how much is going out. Budgets to help with the cost of living don’t need to involve complicated spreadsheets, a good old notebook to track all expenditure and income can do the job just as well. Review your spending regularly to see where adjustments can be made to help you stick to your plan. More budgeting tips can be found in this blog post.
If the 50/30/20 method isn’t practical or do-able (50% for needs, 30% wants and 20% savings) adapt it accordingly to help you best manage your money. A number of budgeting apps are also available and a comprehensive review can be found on the Which? website.
I really hope you find these tips useful. They are just the tip of the cost of living iceberg but any changes we can make within our control are so important so that essential savings can be made.
What can you add to the list? Let me know in the comments.
