Inflation has now reached the highest it has been in 40 years, severely affecting the cost of living crisis in the country.
Moreover, as winter approaches, the cost of living may increase further due to the additional expense of heating and other miscellaneous overheads.
While our current prime minister Rishi Sunak is working on policies to battle the cost of living, media reporting appears gloomy.
Although the entirety of the cost of living situation in the UK does not seem to be slowing down, there are some things that you can do to cope with the rising prices.
That’s why today we have brought you 3 simple tips to cope with the cost of living crisis and reduce your expenses this year. However, before we move on to that, let us explore a few reasons behind the rising cost of living.
Cost of Living Crisis 2022
While many people blame the rising cost of living on the war between Russia and Ukraine, the truth is that inflation had been increasing long before that.
Followed by Brexit and the increased public expenditure during the pandemic, the shortage of goods, staff, and energy supply is one of the biggest reasons we are facing a crisis.
This was further accelerated by the Ukraine-Russia war and a number of other political factors, leading us to where we are now.
Fortunately, there are still some simple methods that you can use to keep costs down and manage inflation. As well as that, there’s no shame in asking for help when you need it. If you do need some extra support, please speak to us at Salad Money.
1. Saving Money on Food & Groceries
When it comes to saving money on food and other consumer products, there are two approaches you can adopt. One is finding less expensive alternatives and the other is reducing your wastage, both of which can help reduce expenses.
Switching to cheaper, supermarket-owned brands can greatly reduce your cost of living, and guess what? They’re just as good as the brands you are used to buying. You can also get some loyalty cards that let you collect points and then use them to get discounts at your grocery store.
On the other hand, you can concentrate on reducing food wastage by only cooking as much food as you need. You can freeze leftovers and eat them for later meals, saving food and thus, expenses.
2. Saving on Energy Bills
After the latest increase in the energy bills price cap announced by Ofgem, the most severely affected group of people are low-income households.
While the energy bills rebate announced by Rishi Sunak whilst he was Chancellor seem to have eased increasing prices, it still doesn’t seem to be enough.
Moreover, after the resignation of Former Prime Minister Liz Truss, we’re still expecting the Energy Price Guarantee announced by her to be confirmed.
However, regardless of what the government does, here are a few things that you can do to save money on energy bills.
a. Use Energy Efficient Devices
This is probably one of the best ways to save energy in the current climate. By using energy-efficient appliances for lighting, heating and various other purposes, you can save more than 25% on your energy bills. However, this is subject to the energy efficiency your appliances provide!
b. Reduce Your Usage
Reducing your usage is one of the most commonly recommended tips to save money on energy bills because this entirely depends on you. Regularly keeping a check on all appliances around the house and turning them off when not in use can significantly dial down your energy bills.
3. Dealing With the Housing Situation
Due to the recent increase in interest rates by the Bank of England, mortgages and rents across the country have severely increased. The change is so drastic that many people are having to choose between groceries and rent.
To cope with this, you can try to find out whether or not you are eligible for certain housing benefits that could help you. Moreover, you can also look into renting a room in your house or passive income sources to make extra money that can help you with the rent.
Choose Salad Money for Fair and Affordable Personal Loans
These are our top tips to cope with the cost of living crisis, helping reduce your expenses and win the battle over inflation.
However, in these trying times, if you find yourself in need of an extra helping hand with money, you can rest assured that Salad Money is here to help.
We believe that the traditional credit score system is not an accurate way to assess a person’s creditworthiness and aim to provide affordable loans to employees with a low credit score.
That’s why, with our unique affordability assessment, we can provide you with fair personal loans without considering your credit score.