Trying to navigate a cost of living crisis can be really difficult, whether you’re struggling with increased prices, you’ve lost money in a crypto scam or you’re simply wanting to meet some financial goals. We’re here with a few things to do to help you establish some new spending habits, to take control and help you transform your finances.
Table of Contents
Write Down Your Daily and Monthly Spending Habits
The first thing you can do to help you cope in a cost of living crisis is to write down your daily and monthly spending habits. Start by picking out things you know that you overspend on daily, like your morning takeaway coffee, getting lunch out at work everyday or nipping to the shop after work for dinner rather than doing a weekly shop. Just being aware of these things and where you’re spending too much can help you to cut down and change your habits. £5 here and there might not seem like much, so make sure to look at how much that equates to over the course of the month.
Then, also look at your overall monthly spending habits. Look at where you can cut back, from your essential spending like contacting your insurance or internet providers to try and reduce your rates, changing supermarkets to a cheaper option, swapping out some takeaways for home cooked meals, going out for drinks less or buying less clothes. You’d be surprised at how much you can change your habits when you realise the amount of money you spend on small purchases here and there.
Bring Together High Interest Debts
Something else you should consider is bringing together your high interest debts. If you have quite a few debts in different places, you are likely paying a lot of debt, so speaking to your creditors and looking at ways to reduce interest or combine your debts into something like an IVA may really help. Speak to a financial advisor about this, as there are some negatives to things like IVA’s in terms of your credit, however they can be life changing for many people who are really struggling with debt. Even if you don’t have lots of different high interest debts, sitting down and figuring out exactly how much you owe will help you to make better repayments, especially if you’ve cut down your daily and monthly spending with the tips above.
Speak To Your Bank
Lastly, you should try to speak to your bank. They may be able to provide you with financial guidance if you’re struggling with something particular, like how you’re able to save towards a goal or repay your debts. Banks have plenty of resources to help their customers, so it’s definitely worth utilising them! If you’ve lost money through any kind of scam, you should also speak to your bank, as well as investment fraud lawyers if the money can’t be recovered.
