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How to spend & save your money, wisely.

Millions of households are being squeezed by rising prices. Purchases have been being expanded, and benefit claimants are now permitted to be used as welfare income for mortgages. For those fighting poverty, the cost of food has became a larger issue.

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Groceries

Food, drinks & luxuries

For all ages and genders, the average weekly food expenditure per person—including shopping and eating out—is £40.30 (or £175) per month. In the UK, the average cost of a weekly grocery shop for one person is £26.5, and an additional £13.8 is spent on takeout or dining out. 

Here is a YouTube channel that provides you with recipes for cheaper and healthier ways to cook for yourself and your family.

Over the course of our lives, our purchasing patterns change in response to a variety of factors, from practicality to emotional triggers. An honest evaluation of your expenditure is a quick and simple strategy to reduce costs because it's all too simple for your living expenses to increase when your lifestyle changes, even without the effect of inflation. 

Grab some highlighters and download the previous one or two months' worth of bank statements. Pick a different colour for non-remembered transactions and a different colour for important expenditures, luxuries you really value and indulgences you could do without. Being brutally honest can help you identify areas where you can make savings without sacrificing your quality of life.

We may lose money due to forgetfulness or a lack of organisation simply because we have so much on our plates. We might sign up for costly regular tariffs or renewal contracts, pay credit card late fees, or neglect to terminate free trials before being charged, all of which result in significant financial loss. Link your current account to an app like Snoop, which scans your transactions, analyses your spending, and notifies you of better offers, in addition to establishing calendar reminders.

Selling or donating an item every time you buy anything new can truly help you change your perspective on consumerism and develop more thoughtful purchasing habits, with the added benefit of assisting you in reducing clutter.

 

Selling unused items can help offset the expense of buying new items on a practical level, and adhering to this rule adds another degree of thought to your purchase. A different option would be to have a major purge at the beginning of each season, then put the money from your sales in a fund to be utilised for new wants and requirements.

When it comes to material possessions, our culture lacks a great deal of patience. Easy financing means that we frequently don't even need to have the money in our account or think about whether or not we actually want or need it.

 

Same-day delivery implies that the time between desiring something and having it is quick and uncomplicated. It can be difficult to resist the want to buy anything as soon as we see it, but consider keeping a "wish list" and giving yourself at least 24 hours before clicking the "buy" button.

In particular, while dealing with kids around the holidays, we don't always have the time or energy to come up with inventive, fun activities. Make a list of wet and dry weather activities so that you don't end up spending a fortune on movie tickets or an expensive day trip. You might even involve the kids in creating the list; this is a fantastic method to instil in them a responsible attitude toward money.

It's estimated that 500,000 minimum wage workers are unaware of their underpayment because they may have to make purchases for work-related expenses or their income may not cover the entire time they are considered to be working. If so, you might be owed £100 or £1,000. Read what to look for in our National minimum wage guide.

Lower-income families can receive as much as £200 a year to help cover the cost of their children's school uniforms, saving them hundreds or even thousands of over the course of their academic careers.  Many will now qualify due to the cost of living crisis creating new financial difficulty, so find out whether you're one of them and what you might qualify for. Through the money saving experts, you can find out if you are eligible. 

There are resources available if you're having trouble making ends meet for food. Don't let pride stand in the way; you can and SHOULD use them. Foodbanks distribute free packages containing enough non-perishable food for at least three days.

Most foodbanks require a referral in order to assist you, while some independent foodbanks don't require one. Typically, a doctor, health visitor, school, or social worker will suggest you. Ask Citizens Advice if you're unsure of who to speak to.

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City Traffic at Night

Transportation

Petrol

Additionally, the cost of filling up the car has skyrocketed due to rising oil costs. According to the RAC's Fuel Watch, the average price of diesel and unleaded gasoline for UK drivers on June 23, 2022, was 198.46p and 190.22p per litre, respectively, with rising fuel prices predicted.

The Chancellor Rishi Sunak announced a reduction in gasoline duty of 5p per litre for a period of 12 months in his Spring Statement, and it went into effect on March 23 of 2022. The RAC estimates that this will reduce the cost of filling the gas tank of a typical 55-litre family car by about £3.

Household bills

Water, utility bills, council tax, broadband, mobile phone and insurance costs.

If you're not careful, money can literally be flushed down the toilet in the restroom. It might actually be a money pit. While taking a lengthy bath may seem like bliss, when the bills start to pour in you might not feel the same.

The Energy saving Trust estimates that switching from a bath to a quick shower once a week may save you £12 a year on energy costs and an additional £7 on water costs.

Although it may sound ridiculously simple, who hasn't accidentally left the water running while brushing their teeth? Make sure to turn off the tap when bathing, shaving, or brushing your teeth as a running faucet can waste more than 10 litres of water every minute, according to the Energy Saving Trust.

Additionally, wherever possible, use cold water in the bathroom. Heating water accounts for about 12% of the typical gas-heated household's energy costs.

If a family of four switched from an inefficient to a water-efficient shower head, they would be able to save around £55 annually on their gas bills and about £45 annually on their water bills, assuming they have a water metre.

Some producers of shower heads assert that their products can cut your water bill in half and reduce your energy costs by £100 annually. Therefore, completing your research and purchasing a water-efficient shower head may be advantageous.

There are numerous "green" shower heads available; thus, be cautious to buy from a reliable seller and confirm that it will fit in your bathroom before purchasing one. Keep in mind that eco-friendly shower heads are typically incompatible with electric showers.

Consider installing light-emitting diode bulbs as an energy-efficient choice as you might not always need startlingly bright lighting. According to the Energy Saving Trust, households could potentially save up to £13 annually per bulb by switching from inefficient 100 watt incandescent bulbs to LEDs, or £5 annually by doing the same with halogen lamps. When you are not in your bedroom, turn off the lights. You can save more than £20 a year by turning off the lights when you leave a room. 

Many households still wash their clothing at 40 degrees, but lowering the temperature to 30 degrees or lower could help you save a little bit of money each year on your utility costs.

Which? experts estimate that washing clothes at a lower temperature could cut a household's annual energy costs by about £12. Using soda crystals or washing machine cleaning can help keep your washing machine in good working order, regardless of the setting you choose.

Always turn off any electronics in your living room, including your TV and laptop, rather than leaving them on standby mode if you are leaving the house for an extended amount of time or going to bed at night.

Turning off appliances and gadgets might save you about £55 in annual energy costs.

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Lifestyle & expenditures

Statics and age groups

Consumers are most likely to reduce their spending on dining out and clothing as they make adjustments to deal with the cost-of-living crisis. Less than half (46%) of respondents stated they would cut back on vacations and travel, indicating that many people would not want to postpone visits that have already been delayed by the pandemic.

According to research conducted for Advertising Week Europe, more than two-thirds of customers (69 percent) believe they would try to cut costs on eating out or ordering takeout, while 60 percent said they would spend less on clothing.

Two-thirds of respondents have altered their lifestyles due to the squeeze on living standards, while those older than millennials have been most affected. The majority of people between the ages of 42 and 67—roughly 72%—say they have already begun to alter their spending habits.

Less than half (49%) of people aged 18 to 25 have changed their lifestyles in response to the crisis, compared to 69 percent of millennials (those between 26 and 41).

 

The majority of respondents (around 39%) said their energy costs had gone up by between 50 and 75 percent.