Handling the rising cost of living
In partnership with Your Juno
You might have noticed that energy price hikes, post-pandemic shortages and oil prices have all dominated the news recently - and now their impact on our daily lives is starting to kick in. Navigating your way around this gloomy landscape can feel overwhelming to say the least: 87% of Americans say that rising prices are a major source of stress, and 84% of our followers told us they’re anxious about the cost of their energy bills. It’s clearly more important than ever to look after both your mental *and* financial health.
Give me the background.
A combination of events have all collided in one huge economic squeeze that’s hitting people across the board. To recap: oil prices have shot up following a cold winter which depleted energy reserves; there’s a huge spike in global demand for oil, as economies bounce back from the pandemic; and less wind last summer hit renewable energy production. Plus, inflation is at a 30-year high. These factors all mean that the prices of everyday items are increasing.
So what can I do?
Here are some of our top tips to make things a little less daunting:
Be realistic about your financial goals. Consider adjusting your savings goals if you feel that sticking to them might impact your present circumstances too much. It’s all about balance - rather than trying to reach impossible goals every month, give yourself a bit of flexibility to make sure you enjoy the present too. A widely-recommended budgeting target is to spend 50% of your after-tax income on needs, 30% on wants, and 20% for savings and repaying debt. That’s a great starting place - but don’t be too hard on yourself if those benchmarks aren’t right for you!
Spring clean your bills. Mark the new season with a cleanse of your bank account. Go through your spending and see if you can cut back on any bills. Are there any apps you pay for and no longer use? Do you have a monthly direct debit to a gym you’ve been to once or twice? Remember that you can always cancel subscription payments, and if and when you want to use them again, you can simply sign up again. There’s even a good chance they’ll offer you a discount after you’ve cancelled to lure you back!
Don’t be afraid to negotiate. It’s not always something that comes naturally, but ask the question and you might be able to save significant sums. Especially when it comes to contracts for services such as your phone, internet and TV - that’s where asking for a discount is key. Many companies have retention budgets and will offer you serious discounts to stop you from leaving, so get your game face on.
Make the most of discounts or perks on the shopping that you do, whether that’s everyday shopping at the supermarket or once-off treats. Use cashback websites such as TopCashback and Quidco to purchase items you plan to buy regardless, and you can find yourself earning a slice of the price back simply for going through their site. For discounts, you can use browser extensions such as Honey, which scan the internet for codes to help you save at the checkout on hundreds of websites.
Finally, check what support you may be entitled to. Make the most of any government support. If you are a parent, make sure you're using all the childcare government support. You might be entitled to free nursery hours, tax free childcare hours and child benefits.
Got any other tips you’d like to share? Reach out via hello@theknowmedia.co!