Times are hard for a great many people and have been for some time now. The cost-of-living crisis has formally entered its second year, with energy bills showing no sign of coming back down – while supermarket shops continue to rise ever-steeper in cost, thanks to disproportionate price inflation of common household groceries.
All of this is to say that, for perhaps a majority of households in the UK, money is tight. The same wages are being stretched ever-thinner to cover the expanding cost of living, reducing savings and spending power in the process. For someone finding the current economic crunch especially difficult, what might be some simple tips for stretching out that monthly budget a little further – whether to meet new costs or simply for a comfortable financial cushion?
Track Your Expenditure
Granted, this is a simple point, but this doesn’t make it any less an effective one: tracking your expenditure is a vital route to understanding your financial situation, and discovering easy options for generating extra spending money. This should start with your basic income and costs, before expanding to include the tracking of every purchase you make. As you gather more data, you can start to notice patterns, and even identify areas to cut down.
Limit Impulse Spending
One of these ways might be to mitigate the amount you are spending on impulse purchases – whether large-scale “I want it now” buys or simply picking up an extra chocolate bar at the supermarket checkout. The less you spend on unplanned items or experiences, the more you will have to spend or save elsewhere, with little impact on your life otherwise.
Less Fast Food
The above also extends particularly to food, where takeaways and meal deals can eat into weekly costs. Rather than relying on pre-made meals, try prepping your own meals at the start of each week. Batch cooking can be profoundly cheaper than resorting to takeaways.
Maximise Savings
Stretching your money is not just about subtractive approaches, though. There are also ways in which you can grow your holdings through interest, increasing your available money and further securing your financial security in the medium-to-long term. Savings accounts generally offer higher rates of interest than current accounts, letting you passively accrue extra money – proportional to how much you squirrel away. Simply put: the more you save, the more you accrue on top.
Discounts, Deals and Loyalty
Re-evaluating your regular expenses, as with the earlier tip, can also lead you to new savings opportunities. In spending more time actively considering your spending, you might find yourself more privy to deals and discounts that allow you the same modern conveniences at a lower price.
This can present in several ways, from special discount prices at different supermarkets to loyalty-based price cuts and special offers. Spending a little time each week investigating new opportunities to replace existing costs can have a remarkable impact on your outgoings.
