The cost of living is still on the increase for Britain, with pay rises failing to keep up with the cost of inflation. In August, inflation stood at 2.5 percent, while the average employee benefitted from just a 1.5 percent yearly pay increase.
On top of this, energy prices are continuing to rise for domestic and international customers. British Gas announced an increase of nine percent on dual fuel costs from October this year, and average annual prices across the large energy providers are set to hit £1,428 next year.
With the cost of life soaring and the nation being asked to tighten its belts again, households are seeking ways to cut expenditure in the home. Fortunately, careful financial management in addition to diligent household checks could help lessen the strain on the country’s bank accounts.
Identify your outgoings
When it comes to cutting the cost of living, it is sensible to assess your outgoings in order to highlight where savings can be made. Mortgage rates are currently low, so take a look at what you are paying and explore your options. If you have increased the amount of equity in your home since you took out your mortgage you may be eligible for a lower rate on your loan, which can allow you to reduce your monthly outgoings.
Similarly, take a look at car insurance, home content policies and energy suppliers. The prices offered by these companies fluctuate immensely, so what may have been the cheapest option a year ago could have rocketed with your renewal.
Reduce costs inside the home
With the soaring price of fuel at the pumps, people are now more careful about unnecessary car trips and use petrol as sparingly as possible. Use the same premise to save on the cost of energy inside the home.
Spending five minutes walking around the house turning off unused lights, appliances, games consoles and televisions is a fruitful and cost-effective use of your time. You can save £35 a year by just turning off just your appliances.
During the winter months a higher proportion of household income is spent on heating the home, so choose to insulate your walls and loft to prevent warmth escaping. Cavity wall insulation could save you £135 a year on your gas bill.