It’s impossible to ignore the fact that the cost of living is rising at a rapid rate. Everything from food prices to utility bills, fuel costs and clothing, it’s all going up and unfortunately for most people, wages aren’t going up at the same rate.This year is set to be incredibly challenging because we’re also being hit by rising inflation and an increase on taxes.There are a number of factors that are driving up the cost of living but the main reason is the rising price of energy, worldwide. As a result of this increase, businesses are facing higher energy and transport bills for businesses, and in most cases, pass those extra costs on to customers.There are also major staff shortages in some sectors particularly hospitality, driving and logistics and healthcare and so businesses are offering higher wages in an attempt to attract people into roles. This increase is also being passed on to the consumer.Furthermore, Government spending hit record highs during the pandemic and now they’re trying to close the gap on the county’s national debt. Their plan to increase the tax on National Insurance is just one of the ways they plan to do this.Some economists are predicting a cut in real incomes worse than the financial crisis of 2008 and while this can feel extremely daunting, there are proactive steps we can take in order to protect our finances ahead of these more challenging times.
The latest reports indicate that the average household energy bill will increase by £693 a year in April, and that’s without accounting for food, broadband and fuels prices also rising.I would start by reviewing all of your monthly bills and then using some comparison sites to identify where you can make some savings. This is also a good time to compare your energy bills, can you get a cheaper rate elsewhere?It can also be beneficial to consolidate your energy bills. Customers of Utility Warehouse benefit from additional savings, the more household services they combine through us. Not only do they save more money, but it also simplifies their monthly bill as it’s all in one.It can also be helpful to get professional advice on your energy bills to help ensure you’re saving as much as you possibly can.
Understanding what we spend our money on is the key when it comes to making savings. Whilst no one wants to cut back on the things that bring them joy, there are clever ways to make sure we’re still doing the things we enjoy but making savings at the same time.Could you challenge yourself to a couple of zero spend days per month where you try to spend no money? This can make us more creative, especially if it’s a weekend because you’ll come up with things to do that don’t cost anything but find you actually really enjoy them.Looking at your grocery bills is usually another quick win. Try planning meals in advance and writing a list so you don’t have a mind blank when you get to the supermarket and end up overfilling your trolley. Are you throwing food out at the end of the week? If so, think amount minimising your food waste so you’re not only saving money, but being more environmentally conscious at the same time.
We’re all guilty of signing up to things and never using them or forgetting to cancel a free trial subscription and ending up paying for it for months before realising. Check your bank statement on a monthly basis to see what’s going out and where and if you have any subscriptions that aren’t being utilised, cancel them!This is also an opportunity to evaluate whether you’re getting the most out of the contracts and subscriptions that you do use. Are there cheaper alternatives for your phone, gym and insurance policies?
More and more businesses are starting to offer reward and saving schemes which can be really beneficial if used in the right way. Our cashback card has become hugely popular with our customers because for every pound spent with the card, you can earn as much as 7% cashback which comes directly off your UW bill. Other online businesses offer cashback on online purchases with their affiliated companies. These can be great ways to save money whilst you’re spending on the things you really need such as fuel, insurance, travel and more!
As someone who invested in my side hustle and has never looked back, I’d 100% recommend it. The pandemic has highlighted the importance of diversifying our income streams because we never know what’s around the corner.The pandemic also showed that we’ve got an entrepreneurial spirit here in the UK. The number of people working in the gig-economy in the UK has more than doubled in the last 5 years and more people are using it to supplement their income. There are a huge range of roles that make up the gig economy and multiple platforms that help to facilitate it. Whatever your skills or interests are, there’s likely to be a side hustle you can engage with.Ultimately, the more conscious you are of your spending, the less likely you are to overspend and with some clever tricks and a savvy attitude it can be turned into a positive.There’s no doubt that there will be financial challenges on the horizon but the more proactive you can be in tackling any potential issues, the easier you’ll ride out the storm.If you’re looking to save money on your household bills and earn a residual income through helping others to save, I have the perfect opportunity for you. No matter where you’re based or how much time you have to invest, you can benefit.Feel free to drop me a message and we can organise a chat.
Prior to starting his current business with UW, Derek dedicated 29 years to Primary Education, serving as a classroom practitioner, an Advisory Teacher for Information Technology, and ultimately as the Head of a Primary School until 2014.
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