How to Manage During the Cost-of-Living Crisis
Are you feeling the squeeze during the cost-of-living crisis? Many households are struggling right now as a result of inflation, rising interest rates, wage stagnation, and the energy crisis. This “perfect storm” has made it difficult to manage their finances each month, with some having to make drastic decisions to put food on the table. Although it is difficult, you should know that there are a few things that you can do to manage during this time. Hopefully, this post’s advice will help you manage the storm and reduce financial stress during the cost-of-living crisis.
Go Through Regular Outgoings
A good starting point is to go through all of your regular expenses and find ways to make savings. You might be able to find a cheaper alternative elsewhere, making savings by purchasing in bulk or cutting back on unnecessary spending (at least for the time being). Even making a few seemingly small changes can make a big difference over the course of 12 months.
Take the Supermarket Downshift Challenge
Food shopping is one area that many are struggling with as it is an essential expense, yet food inflation has gone through the roof. Personal finance guru Martin Lewis (someone everyone should be listening to in 2023) devised the supermarket “Downshift Challenge”, which could help you save as much as 30% on your food costs each year. Essentially, this involves dropping one brand level for all products (these levels include premium, branded, own brand, and value). You can make huge savings by dropping a brand level, and often you won’t notice the difference!
Sell Unwanted Possessions
There is only so much that you can do to cut back on your spending, and many people will not want to sacrifice their spending. This is why it is also important to find ways to boost your income during the cost-of-living crisis. One way to do this is to sell your unwanted possessions. These days, it is easy to sell clothes, furniture, jewelry, artwork, homeware, and any other kind of unwanted possessions that you have at home. In addition to raising some extra money, this can also free up space in the home!
Consider a Debt Consolidation Mortgage
If you are struggling to keep up with debt in 2023, you might want to consider a debt consolidation mortgage. This allows you to use the equity you have in your house to pay off personal loans and any other debt you have. For any debt that is leftover this will be consolidated into a single monthly repayment that often works out to be more affordable. This allows you to reduce debt when interest rates are incredibly high, and it can simplify debt management and reduce financial stress. This is a big decision to make and not one that should be made lightly, so it is a good idea to speak to a specialist mortgage advisor like When the Bank Says No.
Ask for a Raise
Earning more money could make a world of difference and help you maintain your living standards during the cost-of-living crisis. If you have been in your position for a long time without a raise and you are a valuable asset, you should not shy away from asking for a raise. This should always be done in a professional manner, and you need to be able to show your value to the organization.
Look for a New Job
If you struggle to make ends meet and cannot get a raise in your current role, it might be time to look elsewhere. You might find that you could make a lot more money by simply changing jobs, which could wipe out the effects of the cost-of-living crisis. Keep in mind that the rise of remote work allows you to cast a much wider net, so you might be able to find a better-paying job elsewhere.
Start a Side Hustle
If you do not want to find a new job, a good alternative is to start a side hustle. Many people are starting side hustles right now to boost their income, and there are many options that could help you make a lot more money each month. A few examples of side hustles include:
- Freelancing
- Blogging
- Opening an online store
- Tutoring
- Babysitting
- Dog sitting/walking
- Handyman services
- Delivery work
Hopefully, the advice in this article will help you improve your situation during the cost-of-living crisis. This is a challenging time for many, but there are always things that you can do to improve your situation.
