The cost of living in the UK is rising rapidly and looks set to continue to do so. Much as we’d all love to turn back the clock to more prosperous times it just isn’t possible, so we need to find ways to reduce our expenditure instead. The cost of living is increasing at a faster rate than the average income, so it really is time to look seriously at household budgets and cut out the fat:

Prioritise

There are some things in everyone’s life which just aren’t necessary. Whether it’s spending £30 instead of £50 on a manicure, or buying a £3 coffee each morning, there are areas in everyone’s life where they can cut back without sacrificing their standard of living. Certain expenditures like school supplies for your children are essential, but you may have to start buying plain pencils instead cartoon character stationary for example.

Stop losing money

You may think that you don’t lose money but the average Brit is unable to account for £59 a week. This expenditure on ‘unknown items’ adds up to over £3,050 a year! Most people blame it on unexpected supermarket spending and nights out, but it’s very important to keep track of every cent in this climate. A somewhat painful but necessary process is the tracking of your family outgoings. Sitting down with your partner and honestly reviewing where your money is going will almost certainly make your realise a disproportionate area of spending which can be easily rectified.

Cut your bills

Bills in some areas have increased by 28%. This is a huge rise which undoubtedly exceeds the recent increases in your income if you are reading this. Now is certainly the time to shop around for the best deals on gas, electricity and water.

One of the best ways to cut your bills, however, is to utilise the ‘free’ elements included in things like your phone bill. Using the inclusive minutes on your phone in an active manner will allow you to reduce your monthly phone bills. This principle extends to internet bills, loyalty cards and air miles.

Implement an emergency response

Sometimes monetary funds just don’t stretch far enough and we have to turn instead to instant cash loans to meet a necessary spend. It’s important to set up emergency funds for situations such as these so that you are able to meet the necessary demands that are placed on you. If you do not have funds saved for such a situation then remaining solvent after being made redundant can be a very difficult practice.

Amazingly, only 32% of Brits have three months’ worth of savings available to spend if anything did happen to their income. What this really means is that nearly 70% of Brits would be in serious financial trouble after just a month of unemployment. The savings that are made through the processes suggested above need to be collated to create a support system within this volatile economic climate.