Times are tough for millions around the UK. Inflation continues to bite, pushing the prices of necessities ever higher. For some, there are more reasons to be worried with businesses being forced to focus on their bottom line, putting people’s jobs and livelihoods at risk.
Real wages have been falling behind inflation for many years meaning that professionals have been effectively losing money from their payslips. There’s been widespread strike action across several industries, including transport and healthcare, which highlights the challenges being faced by a large majority of the population.
Few elements surrounding this topic are actually in your control, except how you manage the money you do have. In this article, we’ll suggest some ways that you can optimise your finances to help you stay afloat during this challenging period.
Cut unnecessary expenses
The first thing you should look to do when money is tight is cut non-essential and wasted spending.
This all starts with a thorough budget and review of your statements – see what money is going where each month and identify areas where you could cut back.
This could be unused subscriptions, daily takeaway coffees, or anything that accumulates noticeably over the month. You don’t have to permanently give up luxuries, but it’s a good idea to put a hold on some if you’re trying to secure your financial stability.
Manage your debts
Staying on top of your debt is crucial at a time like this. Rising interest rates mean that you are likely to be stuck paying higher repayments for longer if you aren’t able to reduce your debt levels.
It’s a good idea to tackle your highest-interest debts first because these will cost you the most if left unpaid. If you have multiple debts with different companies, you might want to consider a debt consolidation loan to combine your debts into one so you can manage them more easily.
Make a plan to tackle your debts and do this as quickly as possible to give yourself the best chance of staying on top of your finances.
Find ways to boost your income
Another way to improve your financial resilience during times like these is to find ways to supplement your income. This could be working extra hours, selling unwanted possessions, or starting a side hustle.
Diversifying your income streams can also help to build your financial security, reducing your reliance on one source should the worst happen. Boosting your income can be done through regular monthly income or one-off earnings, but every little helps.
Save on your essential outgoings
Everyone has essential bills to pay each month. While it’s unlikely you can cut these completely, finding ways to save money here can be a good strategy to free up money to save, pay off debt, or put money aside into an emergency fund.
This could be finding a cheaper rental property or setting yourself a strict budget for weekly grocery shops. You’ll find there are always ways to reduce your outgoings, you might just have to be creative and willing to compromise.
Managing your money has never been of greater importance. With planning and dedication, you can improve your financial position and be more resilient through any future financial strife.
