Cost of living/pay it forward

By Vix Munro, Money Coach

We’re currently experiencing the biggest squeeze in living standards for decades. Inflation is currently around 7% here in the UK and is expected to rise more. And the price of everything is going up – particularly energy bills, petrol, and groceries.

And whilst it’s a serious issue, it might not be as bad as you think. Here are some things that you can do to improve your financial situation.

1Commit to using less energy Making a commitment to use less energy is actually a positive thing to do for the environment. It will not only contribute to reducing climate change but also reduce your energy bills. Small daily changes can have more of an impact than you might think. These include turning the heating down by a couple of degrees, turning down the water temperature, washing clothes at a lower temperature, hanging out washing rather than using a tumble drier, turning off lights, turning off appliances that are on standby (e.g., television), and taking shorter showers.

2Become more food savvy Saving money and reducing costs is difficult at the best of times, but it can be especially difficult for food as it’s an everyday essential. But there are ways to cut your grocery bill without having to sacrifice your favourite meals. These include growing your own vegetables; cooking everything from scratch; switching to supermarket own brands; reducing your food waste; planning your meals; hitting the reduced section in the supermarket; taking your lunch to work; and meal prepping and batch cooking.

3Change the way you travel Rising petrol costs are clearly an issue. Driving more efficiently is the best way to cut down on petrol. Driving smoothly and maintaining a steady speed will use less petrol than hard acceleration and over-using the brakes. However, you may also want to change the way you travel; like (i) combining several small trips for errands into one; (ii) car sharing with neighbours for trips to the supermarket; and (iii) walking or cycling instead of driving short distances. And if you use taxis a lot, then reducing your reliance on them will free up money for other uses. 4Reduce your spending in other areas. Plan for situations you’ll find harder to navigate, switch up your routine and have a low-/noalcohol alternative to hand.

5Bring in more money An alternative to reducing the amount of money you’re spending is to bring in more money. With inflation outpacing wage rises, it’s difficult to keep up. The obvious solution is to ask for a pay rise. That may or may not be possible, but you won’t know if you don’t ask. There are also other ways to bring in more money. If you have cupboards overflowing with stuff you don’t (or rarely) use, then get selling. Even if it’s stuff you think no one will buy, one person’s junk is another person’s treasure. Alternatively, take on a side hustle. You could teach online courses, drive for Uber, create and sell handmade products, dog walk, or become a virtual assistant. There are so many options – it’s about finding the one that’s right for you. If you’re lucky enough to not be impacted by the cost of living crisis, as you can easily absorb the additional costs, you may be wondering what you can do to help others. To help those struggling, you can donate to food banks and clothing banks. To help family, friends and neighbours who are feeling the pinch, you can make them food and/or invite them for dinner, drive them to the supermarket or donate your preloved clothes to them. Your help doesn’t need to be financial – you can help people identify ways to reduce their costs. You can donate to strangers by performing random acts of kindness, like paying for the person behind you in the supermarket. Whatever it is that you decide to do, it will no doubt be gratefully received.