The cost-of-living crisis is looming on the general public, with many struggling to pay for even their most basic expenses. The strain of increasing bills and high borrowing costs is pushing people to the brink of mental health issues. 20% of Britons suffer from stress, anxiety and depression because of the ongoing cost-of-living crisis.
Right now, people are finding it difficult to sustain the whole month on their salaries, looking for ways to make ends meet through loans, second jobs and side hustles.
Although absolute emergencies can be dealt with using loans by Salad or other reliable short-term lenders, it’s not always ideal to depend on loans for your financial needs.
That’s why, in this article, we’ll be looking at a few ways you can cope with the cost-of-living crisis.
Table of Contents
1. Reduce Your Energy Bills
Energy prices have gone up significantly over the last year, and if you’re looking to survive the month without going broke, you need to save on your energy bills. Energy is one of the most basic necessities, and here are some ways to reduce your electricity consumption:
- Take a short shower instead of taking a bath.
- Turn off lights when not in use.
- Don’t keep appliances in standby mode, as they consume a lot of energy.
- Avoid using the tumble dryer mode on your washing machine.
- Draught-proof your home to reduce the cost of heating and cooling your home.
2. Reduce Food Waste
An average British household often throws away 22% of its groceries. This is not only a bad moral practice but can harm your finances, especially now, where even the most basic grocery prices have risen drastically.
Make a grocery list when visiting the store to avoid food waste and curtail supermarket spending. You can also create a weekly meal plan, allowing you to cook in advance, which helps you stick to your budget by reducing your dependency on takeaways and dining out. This is also a good healthy eating practice and prevents food waste.
3. Check Your Phone Contracts
Phone bills are one of the major components of monthly expenses. Many people fail to check the contracts with their phone provider, making them pay more than what is required. It’s better to go with a pay-as-you-go plan or SIM only to save money on phone contracts.
Similarly, check your broadband contracts and switch providers or payment plans if you find you are paying more.
4. Cancel Services You No Longer Use
In the current cost-of-living crisis, you need to make some hard choices, which include cancelling a few of your subscriptions. This can be a subscription to streaming services that you rarely watch, or cancelling a gym membership that you barely visit. Most of these subscriptions are auto-debited from your account, and often you fail to notice the amount you are spending in a month.
Instead, share a streaming service subscription with your friends or family and divide the cost. Meanwhile, if you find yourself barely visiting the gym, cancel your subscription. We aren’t suggesting that you compromise on your fitness; rather, choose to workout on your own, by doing freehand exercises at home, taking the stairs at work, or simply running around the block. These are great forms of cardio and also cost-effective.
5. Choose More Affordable Options at Your Local Supermarket
The most adverse effect of the cost-of-living crisis has been the increase in the price of groceries. Compare the prices of different supermarket chains and find the most affordable one. Sometimes, buying supermarket brand is comparatively cheaper than buying branded products.
Shopping on the weekdays is often more affordable than going on weekends or public holidays. Also, look for products that are on discount rather than paying full price. You can also buy the cheaper cuts of meat rather than the expensive options. Sometimes buying commonly used items in bulk is a more pocket-friendly option.
6. Wait a Day Before Making Discretionary Purchases
If you can’t stop spending money, it’s a good idea to wait a day or two before making a non-essential purchase. Money anxiety often makes people resort to impulse buying, further propelling them into a financial crisis. Delete your card details from shopping apps or carrying credit cards when stepping out, and use only cash.
This will give you time to think before making a purchase, and you’ll often find yourself not buying it on second thoughts.
In Conclusion
Inflation has struck every sphere of life, and we often struggle to make ends meet. But it is not the end of the world. Following a proper plan and sticking to a budget can help you survive the situation.
If you have borrowed, make sure you prioritise repaying it over savings. Paying off your loans and credit card debts on time helps you save money on fines. Once you pay off your debt, you can concentrate on building your savings afterwards.
Which steps are you adopting to avert the cost-of-living crisis?