Coping with the skyrocketing cost of living
Whether it’s refilling your petrol tank or paying at the supermarket checkout, the higher cost of living is hitting every household hard.
Across the world, everyday essentials are surging in price, up 7.2% year on year across the OECD. Unfortunately, experts predict that prices will keep rising for at least the rest of the year.
What can you do to try to keep up with the increasing cost of living? Here are our 12 top tips:
Look for ways to earn more
- Grow your business’s profitability (talk to us about improving your profits) or ask for a pay rise.
- Take in a boarder or flatmate.
- Sell your unwanted items online.
Cut back where you can
- Prepare more meals at home and spend less at cafés and restaurants.
- Create a budget and keep your spending under control.
- Reduce the amount of meat you buy.
- Find ways to use your car less.
- Cancel your credit cards and your buy now pay later accounts.
- Review all your ongoing expenses like utilities, insurance and subscriptions – cancel, switch providers or get better deals.
Invest in your future
- Think about investing in ways that are likely to outperform inflation – both shares and the property market have historically provided returns higher than inflation.
- Start a new business, launch a new product or service, or try a side hustle.
- Teach yourself about money and finances using free tools online and books from the library. Better money management will help you make the most of what you’ve got.
If prices rise by 7% this year, it won’t be easy to increase your income by the same amount. But if you can increase your income by 5%, then make up the rest through savings, while also investing for the future, you can still come out on top once inflation settles down and prices stabilise.
Worried about money? Talk to us. We have years of experience through many economic cycles, including previous periods of high inflation – and we’re always here to help.