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Tips to help you reduce your outgoings
Sometimes making small changes to your daily habits can make a big difference. Here are some practical ideas to help you cut some of your costs:
The big switch off
One way to save some money is to remember to switch off your lights when you're not using them. Don’t leave a room with a light on, check all lights are off before you leave the house and utilise natural light as much as possible. You could also switch to energy efficient lightbulbs and although the initial cost might be higher, they can save you more in the long run.
You can also switch off your appliances when you're not using them. From your TV, radio and phone charger to your kettle and toaster. When they are not in use, turn them off!
1 degree cooler
According to uSwitch1, if you turn down your thermostat by just one degree, you could save £80 a year on your heating bill. So why not put on an extra layer or get under a blanket and see how much you could save.
You could also look to do your washing on a cooler wash and only put it on when you have a full load. Most washing detergents work just as well even when washing at 30 degrees.
You can also call up your energy company and speak to them about moving to a different tariff, as you may not be on the most cost effective one for you. Don’t be afraid to try and haggle with your providers. They won’t want to lose you as a customer so may offer you a slightly better deal than you are on.
Think about your food shop
With inflation reaching a 30-year high2, this has in turn affected food prices which have increased by 1.5%. Most people have seen a significant rise in their food bill but with some smart shopping there are ways you can reduce your weekly bill. Firstly, always plan ahead. This includes creating a weekly meal plan, writing your list of what you need and looking for any current offers which could be of benefit. You can also save money on your food by shopping for seasonal items as these tend to be cheaper. Remember that convenience foods such as ready meals are usually more expensive, so cooking from scratch can really reduce your bill.
Build an emergency fund
If you haven’t done it already, now more than ever you should consider saving for a rainy day. An emergency fund is the equivalent of three months of expenditure, ideally growing this to six months, worth of savings. This is to help cover your main financial commitments should you find yourself in financial hardship. Find out more about building an emergency fund here.
Check your employee benefits
It is worth reminding yourself of the employee benefits on offer in your workplace. Some benefits might include discount vouchers for popular retail chains including big supermarkets, which could save you hundreds a year. In addition, you may have travel discounts or loans to help you with commuting costs or a cycle to work scheme so you can reduce your fuel costs. If you don’t have access to a discounts portal it is always worth checking online to see if you can find any voucher codes or offers before you make your purchase.
What help is available from the Government
To help households struggling with the cost of living crisis, the Government has announced people could claim up to £350 to support these increases. This includes:
- A £200 energy rebate in October. This means every eligible household will get an upfront £200 discount on their energy bill in October, however this will need to be paid back in instalments from April next year.
- A £150 council tax rebate in April to all households living in council tax bands A-D. This will not need to be paid back.
If you are really struggling with the increase to your cost of living, you do not have suffer in silence. Citizen's Advice offers free and confidential advice and can help you get the right support. There is also Money Helper which is Government backed and offers free impartial help with money problems.
It is also worth remembering that most people will be hit in some way over the next few months by the increase in costs. Talking to family and friends can relieve some of the stress and you may find others have tips on how they are beating the crisis.
Secondsight is a trading name of Foster Denovo Limited, which is authorised and regulated by the Financial Conduct Authority.