Even though inflation is expected to slow down, it is still contributing to many households in the UK struggling to make ends meet. If you’re looking for ways to survive the cost of living crisis, here are a few tips.
This does not constitute advice and advice should be sought in all instances before acting on it.
Build a budget
First and foremost if you don’t currently have a budget and aren’t aware what you’re spending your money on, you need to start one. It might seem like an obvious suggestion, but unfortunately there are plenty of people who aren’t on top of their spending habits. Review your statements from all of your accounts for the last three months so you can identify high-spending areas to get an idea of where you could possibly cut back. Maybe there are subscriptions you forgot to cancel or are still paying for the gym even though you haven’t gone in months.
Once you have an idea of how much your essentials are costing you, then you can build a realistic budget that you can stick to. There are plenty of websites or even mobile apps you can utilise to ensure you aren’t blowing your budget every month.
Reach out if you’re struggling
If you’re finding that there is simply too much money going out and not enough coming in, there are things you can do to help your situation. Rising energy costs might mean that you are struggling to pay your energy bills. If so, get in touch with your provider to see if there is anything they can do to help. Or you could switch energy suppliers to try to save, but most people are better off on the standard tariff and won’t have much luck until it comes to an end.
Do you have lots of credit card debt? You might be able to transfer the balance to a new card as often you’ll be offered a 0% introductory interest rate. If the transfer fee is less than the interest you’d be paying on your old card, it’s an idea worth considering. Be sure you have a plan to pay off your credit cards before this deal runs out and be careful not to transfer too many times as this could negatively impact your credit score.
If you find that your debt is unmanageable, then contact a debt advice charity who will be able to help with your debts, free of charge.
Make sure you are minimising your mortgage costs
Your mortgages (residential and buy-to-let) are likely your largest monthly expense. Make sure you are minimising the rising costs by taking professional advice. If your fixed rate is up for renewal this year, contact us imminently to see if we can either arrange a new fixed rate with your current provider, or look at your wider options. Most lenders will switch a rate six months ahead of the end of your fixed rate term, so don’t leave it to the last minute, as you could be saving from now and securing a lower rate for the future.
As a first step, you can research mortgage options on our live Mortgage Finder Tool. This will give you an idea of the rates available before you call us.
Need help managing your money?
Everyone’s situation is unique, so there’s no one-size-fits-all solution to surviving the cost of living crisis. But there are ways to save money to ensure the cost of living crisis doesn’t overwhelm you. The experts at Dental & Medical Financial Services are here to help you review your current financial situation and put a plan in place so you can still meet your short and long-term financial goals. Get in contact with our team for further guidance.