Inflation has reached an all-time high of 5.4% in the past 30 years. Price increases are both inevitable and difficult. However, small changes to the way we handle our money could help reduce inflation.
1. Take care of your household bills
While some rising costs are inevitable, such as energy and council tax, others are not.
There is a chance you’re paying too much for broadband, insurance, or mobile phones if you don’t check them in a while. Get a better deal, or switch.
Check out any subscriptions that you may have and see if you are able to cancel them.
2. Transfer your mortgage
You can save the most money by switching to a mortgage.
Homeowners can save £3,500 a year on average by remortgaging from a standard variable rate to a fixed-rate mortgage, according to lender Trussle. You can also avoid future rises by fixing now.
3. Invest your savings
Inflation is the only thing that can beat any savings account. You should consider investing any savings you do not use for five years or more.
The stocks and shares Isa are a great starting point. However, you should choose a level that you feel comfortable investing in.
4. Modify where you buy
Everywhere you look, the cost of daily groceries is increasing. But, Which? has done an analysis and found that the cost of everyday groceries is rising everywhere. However, analysis by Which? found that the prices of a variety of daily items have risen in some supermarkets more than others.
Waitrose’s prices increased 9 percentage points last year, compared to 0.59 percent at Sainsbury’s. Look around.
5. Get a pay rise
It’s easier said than done you might say. However, your bargaining power may be greater than you think. If you’re more difficult to replace because there is a strong job market, your employer might be willing to keep you satisfied. About 4% annual growth in pay is expected. It is not enough to combat inflation but it does help to reduce its impact.
Rachel Rickard Straus