More than three in four adults in the UK have seen their cost of living increase over the past month, according to new data.
The Office for National Statistics (ONS) said 76 per cent of those questioned reported a rise in the cost of living in the 20 days between February 3 and 13. Food prices, higher energy bills and increased fuel prices were all highlighted as major factors and come as petrol prices hit record highs.
The survey also found that more workers are returning to the office, with just 17 per cent of people working exclusively from home during the period, compared with 22 per cent in the final weeks of January.
The upcoming increases to energy bills and changes to National Insurance deductions make this the ideal time to check through this list from Atom bank to try and help mitigate the rising cost of living crisis.
Clare Framrose, Head of Savings at Atom bank, explains: “The rising cost of life can feel pretty scary but there are steps we can take as a society to ease the rate of inflation and be better financially prepared for the future.
“The UK Government needs to admit we are facing a cost of living crisis and put in measures to counteract it, both in the long and short term.
“On a personal level, there are also ways to mitigate the rising cost of living, including becoming as financially literate as possible.”
Five tips to help mitigate the rising cost of living crisis
Get creative with how you save and spend your money
Clare said: “In general, we’re more likely to stick to habits that challenge and excite us and it’s no different when it comes to saving. To keep things exciting, try taking on a different savings challenge each year. A good one to start with is the rounding the change challenge, where you round up all your purchases to the nearest 50p or £1 and save the difference - it all adds up.”
Shop around for the best deals, from banks to bills
Clare advises: “Like the rainy British summer and the rising cost of beer, inflation is inevitable, but that doesn’t mean that there aren’t ways to alleviate the pain of ever rising prices.
“Finding a bank that offers you a competitive interest rate can gain you more money without you having to work for it. And the more interest you earn, the more you can reinvest. It’s a perpetual net gainer for your money and a safe investment for the savvy saver.”
Clare also recommends that whether it's for your broadband or your gym membership, shop around for the best deals, renegotiate your contracts at the end of leases and don’t let your memberships roll over without having a good look at what's out there.
Better your financial literacy
“An invaluable tool that costs you virtually nothing, becoming financially literate is a great way for you to educate yourself on the intricacies of your money,” explains Clare.
From taxes to budgeting, a firm knowledge of where your money is going alongside knowing how to properly plan can ensure you know that your money is being spent well.
She said: “Depending on how you learn, there are blogs, online courses, podcasts and even TikTok videos on financial planning that offer invaluable guidance on how to educate yourself. And best of all, a wide range of it is completely free.”
Build up a strong credit score
A strong credit score can grant you access to lower interest rates and can even help you forgo a deposit for some contracts.
Clare advises: “Make sure you pay your bills on time and pay off contracts regularly and your credit score will soar, meaning you’ll be rewarded with better options on borrowing on everything from your mortgage, to your car, all of which will save you a pretty hefty sum over a lifetime.”
Strike a balance
Clare said: “The rising cost of inflation can feel pretty scary, but there are plenty of options and opportunities to mitigate the rising costs and allow you to enjoy a rich and full life.
“While it’s important to be frugal and financially savvy, that doesn’t mean you should sacrifice the enjoyment of your life now in an effort to solely save for the future. Often, an awareness of your spending habits and the ability to not chastise yourself over every purchase can lead to a lifestyle that is both financially and mentally sustainable.”
For more information on savings accounts, visit the Atom bank website here.
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