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5 Tips to Cope With the Rising Cost of Living 

Life is becoming increasingly expensive for people in the UK, and indeed much of the rest of the world. Prices of petrol and diesel have skyrocketed in the last few months, making it incredibly costly for people to get to work and run important errands. Our home energy bills are also rising, meaning many people are struggling to heat their homes without putting a serious dent in their household budget.

The lingering effects of the global pandemic and the current war in Ukraine are partly responsible for these price hikes, but with luck, they will begin to abate in the not-too-distant future and we should see our lives begin to return to normal. But in the meantime, many people are having to find ways to adapt to the heightened cost of living, whether it is eliminating unnecessary expenses from their budget, drawing from their savings, or finding new ways of making money.

To help you save more money and protect your budget, here are five tips for coping with a costly lifestyle in 2022.

Audit your finances

If you;re struggling to get by from month to month, the most effective action you can take is to conduct a full audit of  your household finances. Take a look at the money that is coming in each month, and plot this against your usual outgoings, including bills, groceries, and travel. By scrutinising your expenses you get a good overview of where your money is going, which makes it easier to identify areas you can cut the costs. Do you have a gym membership you aren’t using? Why not give it up and start running or working out at home instead. If you use streaming services, ask a close friend or relative if you can share their account.

Find another source of income

If the salary you earn isn’t quite enough to live comfortably, perhaps you can earn a passive income on the side. There are so many ways to do this, whether by starting your own online business, selling your old belongings, renting out a room, or dabbling in crypto accounts. The opportunities are endless.

Reduce your energy reliance

The biggest costs at the moment are fuel and energy, but by reducing your reliance on these, you can escape much of the effect of the price hikes. Start cycling or walking short journeys instead of driving. You will not only save money, but also boost your fitness and avoid the stresses of rush hour traffic. Make an effort to use less electricity and hot water at home as well.

Cut the costs

When you do your weekly food shop or buy other household essentials, see if you can find a different store with lower prices, or search online to find discounts and bargains. If you like shopping online, take some time to price match various sites to find the best deal.

Don’t panic

If you are struggling to cope with the rising cost of living, it’s important to remember that this will pass. Inflation has risen and fallen throughout history, and although we are in a bad patch, things will return to normality in the end.