Have you noticed the cost of living rise significantly as we emerge from the pandemic?As life begins to get back to normality, I’ve been saying yes to as many social invitations as possible and whilst I’ve had a fantastic time, I’ve definitely been spending a lot more money than I was this time last year.On top of that, we’ve had news that the government will be increasing taxes and that the "Big Six" energy giants are increasing their tariffs, whilst many of the smaller business are going out of business.As the furlough scheme starts to wind down, there will be uncertainty for many people who are wondering whether their jobs are secure and with a backdrop of increasing out goings, it’s sensible to be on top of our finances.There’s still such a taboo when it comes to talking about money and finances but losing control of them can be hugely damaging to our wellbeing. Opening up the conversation helps to educate people and empowers them to manage their financial situation whatever it may look like.With that in mind, here are 3 things to consider when it comes to managing your finances:

1. Work out your average expenditure 

Knowing what your fixed outgoings are every month is the perfect place to start. This means adding up all the things you have to pay for each month whether that’s mortgage payments, rent, bills, phone contract, gym membership and anything else. The easiest way to do this is to look at your direct debits and calculate from there. Once you have a total amount, deduct this from your monthly pay to work out what your disposable income amount is. It might seem like a tedious task, but it gives you an idea of where your money is being spent each month, how much you have left to spend once the essentials are covered and will help you to budget.It’s so easy to tap our cards on a machine in a shop or a bar these days that it doesn’t feel like we’re actually spending money which can be a problem if you’re on a budget. By having a better understanding of what your available expenditure is each month, the easier it’ll be to spread this across the month rather than spending it all in the first week or two.

2. How can you save money?

Carrying out an audit of your monthly expenditure will usually highlight some ways you can start to save some money each month. Firstly, when you look at your direct debits, are there things you’re paying for that you no longer use? These are often memberships or subscriptions that we’ve forgotten about. If so, review the contract and cancel where appropriate.This is also a good time to compare your energy bills, can you get a cheaper rate elsewhere? With prices rising it’s definitely worth shopping around. You may also find it beneficial to consolidate your energy bills into one through a provider such as Utility Warehouse. The structure of our wholesale energy agreement means that the cost of the energy we buy is protected against pricing volatility, both today and in the future which could help you save money.Getting into the habit of looking at your accounts at the end of each month will help you identify other areas of your life that you could make potential savings should you need to for example, buying one less coffee out a week. Ultimately, you become more aware of your spending habits.

3. Diversify your income stream 

If the pandemic has taught us anything, it’s that no job is guaranteed, and that things can change in an instant. If we rely on just one income stream, we are putting ourselves at risk should anything happen to that source. Prior to the pandemic, the gig economy whereby people are paid on completion of performing a “gig” ie. a task, was already on the rise, however figures show the number of people working in the gig economy has drastically increased over the last year. More and more people are using the gig economy to supplement their income. Nearly half (48.1%) of all gig workers in the UK are in full-time employment, 12.4% work part-time, 10.7% are self-employed and 11.3% are students.[1]Contrary to popular belief, there are a huge range of roles carried out by freelancers operating in the gig economy. In the UK, the most popular tasks involve online work. There are various platforms which help to facilitate gig-work and much of it allows you to complete tasks in your own time meaning you can do it as well as your full-time job.I am always happy to have a conversation with anyone looking to give themself more financial security by diversifying their income as I’ve done it myself. In fact, my team and I have built a community of people who have all done this and are willing to share their experiences.Managing your finances doesn’t have to be challenging or mean that you’ll miss out on fun things. the opposite is true, it allows you to be savvy and more financially secure in the long run.For more motivational and business insights follow my blog and to learn more about the energy tariffs offered by UW visit the website.[1] https://standout-cv.com/gig-economy-statistics-uk#definition