How to Survive the Cost of Living Crisis

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We’ve all heard about the UK’s cost of living crisis. Inflation is currently at 10.1%, the highest it’s been in 40 years. You might experience this when buying fuel, groceries or renewing your broadband in the past few months. I know this is affecting everyone, but don’t worry we have a free guide that helps you. Also, in this article, I’m going to give you some tips to ease the pressure on your shoulders in surviving the cost of living crisis.

What is the Cost of Living Crisis?

Do you know what the cost of living crisis is? Well, at the time I’m writing this the UK’s inflation rate is at a 40-year high, which has left plenty of the country’s population experiencing the effect of it.

The cost of living UK crisis represents a drop in disposable income for households due to rising energy and fuel costs, as well as supermarket prices. When inflation skyrocketed and salaries failed to match it, coupled with recent tax increases, it is becoming harder for families and individuals to cope with the cost of everyday living. This is what we called the cost of living crisis.

Reasons for Increased Cost of Living Crisis

There are several reasons why the cost of living is on the rise. Many people blame the high prices on the invasion of Ukraine and the sanctions on Russia, and while this is a factor, the cost of living was rising for several months prior to this due to Brexit, shortages of goods, staff and increased public spending and borrowing due to the pandemic. We can point out the factors as follows:

• Russia & the Ukraine conflict
• Covid
• Collapsed energy suppliers
• Weather conditions
• Environmental issues
• Agriculture
• Supply chains
• Commodity prices

How to Survive the Cost of Living Crisis

If the rising cost of living is affecting your circumstances and you’re desperate to find ways to ease the financial pressure off your shoulders, then check out our free guide

There may be some simple ways that people can ease the pressure on their finances, though.

Here are tips to save money during the cost-of-living crisis.

1. Draw up a budget

Many of us are having to watch our spending, and one of the best ways to do this is by working out and sticking to a budget. Your monthly budget should include all your essential and major outgoings: mortgage payments or rent, food, utility bills, transport costs, and personal spending, such as clothes and meals out. But exactly how you budget depends on what works best for you.

Also, you can start by writing down all your expenses.

2. Direct your direct debits

Direct debits are a great way to ensure your bills get paid on time, but they are often paid without you even noticing. A study by Natwest stated that we waste an average of £468 by not keeping an eye on direct debits. If this is the case, It’s certainly the time to check your contracts and deals and renew for more affordable ones. Research has found that millions of brits are out of contract and could half bills if they fixed a deal.

3. Cancel Any Unused & Unwanted Subscriptions

Another easy way to save money is to cancel services or recurring purchases that you don’t use or can’t afford. It might be difficult to do, especially if it’s things you enjoy, such as streaming apps or Netflix. However, with prices going up, it can be harder to justify extra pounds if you’re not getting the full potential.

4. Sell Unwanted Items

The rule is if you haven’t used something in over a year and it’s not sentimental, sell it! Not only will your home feel lighter, but your bank balance will be bigger. You can sell anything from old smartphones, clothes, books, furniture, and electronic devices. You can sell pretty much anything these days if you find the right marketplace. eBay has the option to search for completed listings, Facebook Marketplace, Gumtree and Amazon or try your local car boot or charity shop that may offer cash for clothes. You can charge up to 50% of the original price for used items and sometimes more if in good condition, so that is extra cash you’re sitting on that could be in your pocket.

5. Save Energy at Home

Cheap energy tariffs are virtually impossible to find at the moment, so the best money-saving tips involve just using less energy. There are so many ways that you can do this – and the good news is that it’s great for the environment too. Dimmable LEDs use about half the electricity of bigger fluorescent ‘energy saving bulbs’ and, while they come with an initial outlay, you’ll recoup this quickly.

Turning your thermostat down one degree will cut your bill by around 4% or £65 a year, and don’t heat the entire house if you’re spending the day in just one room; instead, use thermostatic radiator valves to set the temperature in different places.

These energy-saving products will help you save energy at home:

6. Make Regular Rain Checks

Do you ever get to the end of the month and wonder where all your money has gone? A regular rain check on your finances will help you take control and feel more confident about the future. An easy way to do this is to take a closer look at your highest expenses; it may be looking at how often you drive your car, go shopping or eat out with friends or family. You can then evaluate if you can reduce or cut back any of these costs, such as buying in bulk with fewer trips to save on fuel, shopping around for the cheapest local supermarket or cooking at home for friends or your family to save the extra costs of take-outs. The truth is it may feel like a big sacrifice for small savings, but the more income you have left over, the more stuff you can do and the more you have to save.

7. Use Simple Products to Stay Warm

With so much focus being placed on people struggling to heat their homes, relatively little attention has been given to the techniques people can use to ‘heat the human’. While buying warm clothing is an obvious solution, less people consider items such as electric blankets, hot water bottles and electric gilets to ‘heat the human’. The advantage of these items is that no heat is lost through the individual’s home, typically through doors and windows.

These products will help you to stay warm:

8. Cook in Batches

Slow Cookers are popular, but also under-used, an appliance that can cook a range of meals from stews, curries, soups, casseroles, yoghurts and desserts. The ‘hands-off’ operation of a Slow Cooker makes for a welcome alternative to a conventional cooker as you can enjoy a hot meal that’s been cooking throughout the day.

By batch-cooking your meals for the upcoming days or work week, and organising your ingredients accordingly, you can have a meal that’s cheaper and more energy efficient than a conventional oven. The longer cooking time not only makes the most of budget ingredients but also makes cheaper cuts of meat extra tender. But if you’re looking to cut down (or cut out) your meat consumption, there are plenty of vegan options as well.

9. Use a Microwave

Despite their convenience, microwaves get more than their fair share of criticism; but with the energy crisis showing no sign of letting up, using your microwave in place of the oven could help save consumers both money and energy. In side-by-side comparisons; microwaves cooked food faster and more cheaply while using less energy in the process.

Microwave Oven

10. Head to your nearest Community Larder, Community Grocery Store or Community Fridge

As the cost of food continues to balloon with inflation; Community Larders, Community Grocery Stores and Community Fridges are becoming increasingly popular alternatives to supermarkets. The function of these Community initiatives is to take donations of surplus food, and then sell it at a vastly reduced price through a membership scheme to those who can’t afford a conventional supermarket food shop.

We all know how difficult it is when this cost of living crisis knocks on our door. If this is happening to you, don’t worry. This free resource will help you.

Hey! If you liked this article you might also be interested in these other popular related posts:

• What is the Cost of Living Crisis
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