We’ve all been feeling the pinch the last few months - everything has been getting more and more expensive, right? So what can you do to protect yourself, and get some financial certainty when everything feels so uncertain? We’ve shared our top tips in this blog post to help you combat the cost of living crisis.
You probably have less spare cash!
Because things are more expensive right now, people have less cash to spare, especially because salaries aren’t increasing by the same amount as inflation. This means that more of your income is likely going on what we call ‘essentials’ - the things you can’t do without. That might be your rent, weekly food shop, energy bills, or your petrol. And with more money going on the essentials, you have less going into your savings (or less to spend on fun stuff like going out with your mates and aaallllll those different TV subscriptions!).
Not a great situation! But there are three things you can do to get your finances into a better place:
1. Reduce your outgoings
2. Increase your income
3. Protect your income
1. Reduce your outgoings
First thing you can do to help yourself is reduce the amount of money you’re spending each month. Here are some ways you can do that:
Track your spending (use a spreadsheet if you find it easier, or a budgeting app), and identify any unnecessary spending (perhaps a subscription service you don’t use anymore)
Shop around for the best deals, whether it’s for something important like your car insurance, or something smaller like your favourite takeaway - don’t just settle for the first price you find, take some time to research online, it’ll be worth the essential saving!
Re-negotiate contracts where possible - perhaps it’s time to revisit your rental or mobile phone contract. Can you find a cheaper arrangement elsewhere?
2. Increase your income
Next up, you want to get more cash coming into your bank account. Could you try the following?
Check in with your employer - are you due a pay rise? There’s no harm in asking, the worst they can say is no!
Start a new side hustle to generate another stream of income. It’s also an opportunity to get creative!
3. Protect your income
The third point is probably the least thought of, but here’s why we think it’s important!
Because things are more expensive, you’re now more reliant on your monthly income to cover your essentials. So it’s pretty important that we keep that income coming in right?
But what if you couldn’t work? What if you fell ill (which sadly many of us do unexpectedly), or had an accident which meant you couldn’t do your day job? Would you continue to get an income? Probably not, or not for very long!
Income protection insurance is a product that can help you and ensure that your income continues, even if you can’t work.
If you’d like to know more about income protection, your financial advisor is the best person to speak to. Or if you have a mortgage advisor they may be able to help you too!