We are in a ‘Cost of Living Crisis’ storm right now with rising inflation, energy costs, fuel and food costs and these can lead to anxiety and stress in our members as well as financial difficulties. Here at BDCU Money Tips, we are going to focus on inflation and what you can do about it.
What is inflation?
Inflation in the UK is over 10%, which is the highest we have seen in over 40 years. Inflation is when there is a general rise in the prices of services and goods over a certain period of time and the money in your pocket loses value. The cause of this arose following the Pandemic and the War in Ukraine which has put pressure on energy, fuel and food and bills to all go up fast and this makes inflation rise too. To tackle inflation, the Bank of England raises interest to slow down demand and weaken the effects of inflation, which in turn makes the cost of borrowing, especially mortgages.
How to cope with rising inflation and increasing financial difficulties
Make a budget and find ways to cut costs
A way to feel in control of your finances is to make a budget by working out what you have coming in and what you have going out, to see what you have left over. Then look at what you can scale back on to save your money by cutting out any services/products you don’t need and try negotiating or reducing any other bills.
Look at reducing subscriptions like Spotify, Netflix, or Amazon prime as well as phone bills and broadband bills. With phone and broadband you can look to move to a lower-cost package, especially if you don’t need to use unlimited data and minutes. It’s important to also revisit your insurances coverage as you could be saving more elsewhere. CompareTheMarket is a good website to have a look to compare Car, Home, Pet, and Life insurance!
When it comes to grocery shopping, budgeting and weekly meal planning can prevent you from overspending. Don’t forget to join your local shop’s rewards app such as Asda rewards and Tesco Clubcard to save and get exclusive offers!
Ask for help and don’t let setbacks put you off
Don’t feel ashamed to talk about money worries as talking about financial difficulties to people you can trust can help your mental and health well-being. If you feel uncomfortable talking to family members or friends, resources such as Mental Health & Money Advice, Money Helper, and the NHS Every Mind Matters website.
Find ways to Increase your income
Find ways to make extra money aside from your regular job. You can start selling unwanted clothes or items stored in the garage on eBay, DePop, or Facebook Marketplace. To go the extra mile, you could consider renting out a spare room or home on Airbnb, driving for Uber, starting a pet sitting business, or tutoring online.
BDCU can help:
Here at BDCU we have ways to help.
- Start Saving! We help encourage our members to get into savings habits in a way that is suitable for them. Whether that’s through payroll deduction, regular savings, or saving as you borrow. You can see the type of saving accounts we have here.
- Look at our loans and see if you can save money – our loans will not go up with interest rates so this may work out better for you.
- Consolidate your outstanding personal loans, credit cards, overdrafts.