Britons warned of damaging impact of rising inflation
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Britons struggling to stay afloat against the cost of living crisis were dealt more bad news in May, when it was announced inflation had swelled to nine percent. The term relates to the rate at which prices are rising, and is largely being driven up by fuel price rises and energy bill hikes.
The Bank of England (BoE) warned inflation might reach 10 percent within the coming months, spiking the value of food and fuel even further.
Makala Green, author of the book The Money Edit, told Express.co.uk any rise would also affect the price of goods, such as “raw material and postage”.
She added: “Of course, this will continue to affect many more households as the average pay, including increases, is not keeping pace with inflation.”
So, to help combat the effects of rising inflation, Ms Green shared her top seven money-saving hacks.
1) Cut unnecessary expenses
Though rising inflation can appear frightening to your finances, making small sacrifices can help provide some comfort.
Ms Green said: “Review your spending and identify any opportunities to reduce your spending.
“It may be regular subscriptions, reducing the number of times you eat out or socialise each week, or recycling clothes instead of buying new ones.”
2) Prioritise your spending
The financial expert explained it’s “important” to rank your spending habits, during periods of high inflation.
Doing so will help you gain “better control of your finances, and keep you out of debt”. Maintaining a “regular budget” should help you to stay on top of your finances.
3) Seek free alternatives
Ms Green said her third tip is all about “being more creative with your enjoyable expenses”.
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She said: “Inflation may be rising, but that shouldn’t stop you from having fun.”
Opting for nights in with friends as opposed to expensive meals, or looking for offers on attractions in newspapers, magazines and online can help you save much needed cash.
4) Shop around
Exploring your options for cheaper deals on energy bills, mortgages and food shops could play to your benefit.
Ms Green outlined how you might “discover there is little difference in quality or taste”, if you purchase store branded items.
She added: “Make use of store coupons and vouchers to help your money go that little bit further each month.”
5) Speak with providers
If you’re struggling to make payments on time then pick up the phone and speak to your providers. They might be able to suggest ways to lower or reduce your bills.
6) Secure a fixed rate mortgage
If you have a deal that is about to expire in the next six months, or are on a variable rate mortgage, you may want to consider fixing your rate, according to Ms Green.
She said: “As inflation is expected to increase even further, this could mean increased mortgage rates, and therefore fixing early will help shelter you from the rises.”
7) Be energy efficient
The following examples are all ways you could be more energy efficient around your home:
- Switch lights off when not in use
- Use a washing line instead of a tumble dryer
- Keep doors closed in the house to retain heat
- Fill the washing machine and dishwasher all the way up before using
- Use energy-efficient light bulbs
- Opt for solar garden lights as opposed to electric
Ms Green said adopting her tips would ultimately “help you take better control of your finances”.
She added: “Even if you start with simple steps and apply them daily, you will see the financial benefits in the future.
“It will support you to shift your money mindset and set you on the right path to improving your finances while keeping you in control of your money.”
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