How To Survive The Cost Of Living Crisis

You may have seen Boris Johnson’s failed attempt to show the public how they can manage their money better in the upcoming months. Although his idea was a helpful indicator of how much kettles cost, I thought it might help offer some tips to more significantly impact your finances. Asking for a pay rise is uncomfortable, intimidating, and can go totally wrong if you don’t know how or when to do it.

1. Reevaluate your current bills

If you are too complacent with your bills you often miss out on potentially cheaper options. Our economy is becoming increasingly more competitive, meaning we often have better options out there. Research competitors of the companies you are currently with to see if you have the best deal. This can be for phone bills, insurance, or even bank fees.

A few weeks ago I noticed my business insurance was due to renew automatically and I had the thought to call the company to see if they would give me a reduced rate, which they did! Then I decided to do some research to find out what other companies were offering and I found the same thing for £395 less. Naturally, I switched companies.

It got me thinking, though, that we often assume that our loyalty to a company will be rewarded because that’s how it was in the past. In reality, though, most companies don’t put as much energy into customer retention as they do into acquisition so you can almost always get a better deal as a new customer.

2. Don’t underestimate the little things!

Subscriptions have slowly become the new normal and they can be a great way to save money if you are aware and a very easy way to spend money if you aren’t. Take the time to check your apps and your bank statement so you know what is going out of your account monthly or yearly. You may be surprised by how much you’re spending on apps you may not even use regularly.

3. Don’t let savings pile up!

Now more than ever it’s crucial that we become savvy with investment. Money left in the bank is decreasing at the rapid rate of inflation and if you’re not careful, there might not be much left in a few years.

I can’t give you any advice (for that you need a financial adviser!) but I can tell you what’s been working for me.

I like to make sure I don’t have no more than 3-6 months of expenses in my savings account at a time. That 3-6 months of expenses is what I call a crisis fund and the idea is that it’s there in case of emergency. Anything above that cap I like to put towards investment so I’m putting my money to work!

I was pretty intimidated by investing (and still feel out of my depth at times) so I decided to start off with some passive investment. I use an app called Nutmeg and I love it!

Once I started this passive investment I started studying and learning more about other ways to invest and companies I’d like to invest in. Research is key! My rule is that I don’t invest until I really understand the company and industry.

I know there is no guaranteed safety with investment, but the alternative is a guarantee that you will lose money with inflation, and that bothers me much more.

4. Ask for a payrise!

The cost of everything is going up and so must your income. Companies may try to avoid the inevitable and hold back on increasing your pay. If you suspect this is the case it’s important for you to ask. If you want my tips on how to do that you can check out my blog all about it! (insert payrise blog link)

If you are self-employed or a business owner, increasing your rates is an absolute necessity. It may feel uncomfortable or unfair but, unfortunately, that’s the game. You can start with only new clients if you are worried about changing the rates for existing clients or you can even offer a slightly lower increased rate so they feel valued.

5. Look for support

The last thing I want to bring up is the importance of knowing what support is available to you or your business. We are lucky to live in a place where there is often a lot of support if we know where to look for it. If you live in the UK this is where I suggest looking first, take time to explore your options! Click here.