With everyday expenses rising dramatically, it’s more important than ever to look for ways to save money. Increasing energy prices are putting extra pressure on households, with widespread uncertainty from the media and power suppliers making it tough to anticipate the impact.
In this guide, we’ll aim to cover some of the best ways to keep a cool head and be prepared for steeper bills with the cost of living rising at the fastest rate for 30 years.
Budget your income
Even if it might be tempting to splash out as soon as payday comes around, it’s important to be prudent. Dividing your pay is a logical solution and can help you plan for the month ahead.
Consider your expenses including bills, rent, groceries, savings and spending money, and prioritise according to your needs and salary. If planning your budget alone isn’t enough to motivate you, try to set goals throughout the month and tick them off as you go.
Create an emergency pot
If the worst should happen and you’re suddenly faced with a very high bill, it’s a good idea to have some cash set aside. If you can’t rely solely on your personal funds for emergencies, you could borrow the necessary amount from a direct lender to meet your next payment deadline. However, you’ll need to make sure you can afford the repayments.
Check your routine
Do you leave the kitchen lights on at night or forget to switch off your TV? Checking out your daily habits could make a productive difference to your bank balance.
It’s easy to get caught up in the hustle and bustle of working life – but making a conscious effort to be ‘greener’ could pave the way for healthier routines. On a month-by-month basis, using more energy-efficient devices in your home could also help you save cash.
For example, switching to energy-efficient lightbulbs could make a surprising difference. According to the Energy Saving Trust, you could save around £30 per year on your electricity bill if you replace every halogen lightbulb in your home with an LED equivalent.
Update your heating system
Are you using an outdated boiler? If your central heating system has started to show some signs of deterioration, it could be time for an upgrade or a complete overhaul.
New heating technologies shouldn’t be overlooked. Experts have calculated that switching to a heat pump could save you £260 per year on household energy bills, particularly if you’d been using an older system like an oil-fired boiler.
With the right preparations, you and your family should be able to deal with any unexpected bills coming your way.