The cost of living crisis is a serious issue with many people all over the country worrying about their finances. Everything seems to be going up in price, including food, fuel, energy, mortgages, and rents and this means that even those on an average salary will be feeling the squeeze. Inflation has been soaring in recent months and it is thought that it could hit heights of 13% this winter. The Bank of England recently announced a rise in the interest rate to 3% in a bid to reduce demand and bring inflation back down again.
How to Get by
With everything seemingly getting more expensive and a lack of wage growth, it is understandable that many people are panicking. This is a very serious issue and many will struggle, but there are things that you can do to get by in the months to come.
Energy is one of the main concerns with the cost of energy so high heading into the winter months. Therefore, you want to reduce your usage as much as you can. This could involve buying an electric blanket, wrapping up warm in layers, taking shorter showers and using a fireplace if you have one to keep warm. You should also make sure that your home is properly insulated.
Food is another problem as this is a necessity but the cost of everything is rising. To save money on food, you can try shopping at cheaper supermarkets, buying supermarket own brand products and buying food in bulk as well as taking advantage of deals and offers. Cutting back on luxuries and meal prepping can also help to keep costs down.
Even by making posited changes, there will still be those that struggle, and many will see their standard of living change. If you are worried about how you will manage, there are solutions available. You could take out an equity release mortgage as a way to boost your finances and this could help you to maintain or even improve your living standards. You should also check to see what you are entitled to, speak to citizens advice and let your creditors/landlord know if you are struggling to keep up with payments.
When Will Inflation Ease?
In such a stressful time, it is understandable that people want to know when inflation will ease and the cost of living crisis will be over. It is hard to predict, especially in such turbulent times, but the BoE expects inflation to fall in the middle of 2023 and then to fall sharply towards the goal of 2% 2 years from now.
Many people are worried about their finances heading into winter and this is understandable. The cost of living crisis is a serious issue, but there are things that you can do to manage in the months to come and hopefully the situation will start to improve in the middle of 2023.
