With the cost of food, electricity, fuel and more on the rise, living costs in the UK are increasing daily. If you’re looking to cut your expenses and limit the amount you’re spending on everyday essentials, check out our top 10 ways to reduce your living costs.
1. Create a budget
When faced with rising bills, it’s tough to know where to start when looking to reduce your living costs. Budgeting and checking your bank balance every day can make a big difference as it means you’ll be completely aware of how much money you have coming in and how much you pay out each month. Not only will your budget show you the total cost of your essential bills but it can also help you start to find areas where you could cut your expenses. But your budget shouldn’t be fixed – you’ll likely need to spend more on energy in the winter, for example – so review it regularly and every time your circumstances change.
2. Cut transport costs
Transport can be one of the most expensive everyday living costs, especially if you rely on travelling by car. To help combat fuel price increases, look for alternative ways to get around that could be more cost-effective. Taking the bus or tram to work, walking short distances, or riding a bike could all be cheaper transport options. If you already use public transport regularly, look to see if you can cut your expenses and save money by investing in a season ticket or applying for a railcard if you’re eligible.
3. Save on household bills
Your household bills are essential living costs, but that doesn’t mean you won’t be able to find savings when you want to cut your expenses. Firstly, find out whether you’re eligible for a discount on your council tax. Each local council has different eligibility criteria but, depending on the rules where you live, you might be able to reduce your payments if you have a low income, claim benefits, live alone, or with full-time students.
While switching energy supplier might not be the best option to save money right now, you can also look at ways to reduce your energy usage at home. If you have access to a grant, or can afford to invest, you could try to make your house more energy efficient by installing insulation, double-glazed windows, or a more effective heating system. If not, look at ways that you can cut your energy use such as limiting how often you use appliances like the dishwasher or tumble dryer, don’t leave anything on standby, turn down the thermostat, and switch to efficient lightbulbs.
4. Explore debt management solutions
If the rising cost of living is making it more difficult for you to manage your debts, now could be the right time to seek expert debt advice. Consolidating your debt into one monthly payment might make it easier to keep track of your outgoings while an informal arrangement like a debt management plan could help you make an agreement with your creditors to reduce your payments. If you’d prefer a more formal solution, an Individual Voluntary Arrangement is a legal agreement that could help you pay back your debt over a set period and prevent your creditors from communicating with you directly.
5. Start meal planning
One of the most common pieces of saving money advice that you might have come across is meal planning. While it might not sound like an important change, it could become especially important as inflation continues to cause food prices to rise. Planning your meals ahead of time makes it easier to only buy the ingredients that you need and ensure that you use them before they go out of date to avoid waste. It can also mean you have leftovers available to use for work lunches. Take note of your spending when eating out or ordering a takeaway too as these costs can add up over time.
6. Use cashback apps
Even when you’re budgeting, some purchases are unavoidable. Perhaps your washing machine has broken down beyond repair or you need to renew your home insurance? Using a cashback website or app could help you get some of your money back when shopping online. TopCashback and Quidco are two of the most popular cashback sites in the UK. They both work with several retailers and insurers and will give you a percentage of the purchase price back, just for shopping through their service. If you’re looking to switch, you might also be able to find a bank account or credit card that offers cashback.
7. Check all your subscriptions
Monthly subscriptions can add up. Spending £5 here or £10 there might not seem like a lot at first, but when consolidated and paid for 12 months or more, you could be spending hundreds of pounds on services that you barely use. Do a thorough audit of every subscription you currently have and decide whether it’s something you use enough to be worth the cost. Gym memberships, TV streaming services, music apps, cinema passes, coffee clubs, and more could all be cut back when you’re budgeting. It’s also a good idea to unsubscribe from mailing lists so that you won’t be tempted if your favourite brand announces a sale or launches a new collection.
8. Switch suppliers
While the energy price cap means it’s unlikely to be cost effective to switch energy suppliers for the foreseeable future, you can still look to make changes to other services. Shop around to find out if you could cut your expenses by switching to a cheaper broadband supplier or mobile phone contract. Be sure to check comparison sites when looking to renew your car or home insurance too as you might be able to secure a better deal than an automatic renewal would offer.
9. Shop second-hand or borrow
Buying second-hand items or borrowing goods instead of purchasing them new can give you the same buzz as shopping without the hit to your bank balance! Visit your local charity shops or head online to websites like eBay and Depop to search for bargains on everything from books and clothing to homeware. If you’re a keen reader, using your local library could save you from having to go on a book buying ban, while renting a bike for short journeys in the city centre could cut down on your taxi costs.
10. Investigate new income streams
While most of our saving money advice has centred on cutting costs and budgeting, you might be able to combat the cost of living crisis by increasing your income. That doesn’t necessarily mean that you need to change jobs or negotiate a pay rise. Instead, investigate whether you have any unwanted items that you might be able to sell, explore whether you can make money from your hobby, or rent out your spare room, garage, or parking space.
If you would like to explore your debt management options, our friendly team of experts is here to help. Give us a call on 0161 8260 585 or send a message here