With energy bills soaring and mortgage rates rising, and not to mention the food bills creeping up, finances are a hot topic in the UK right now amid the cost-of-living crisis. If you're worried about your money, you're not alone but we've teamed up with FinTok influencer This Girl Talks Money to provide you 15 essential tips to recession-proof your life right now.
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Ellie's ultimate advice to recession-proof your life amid the cost-of-living crisis
1. Budget
Budgeting isn't a one-size-fits-all type of thing, so finding a method of managing your income and expenses that works for you is key to keeping on track towards your money goals especially amidst the cost-of-living crisis. Whether you prefer using a notebook, you're a spreadsheet kind of person or you want to manage your money at your fingertips with apps, there's something to suit every person out there. Make sure as a first step to find a budget set up that suits you and you’ll give yourself the best chance of sticking to it.
Get savvy with your money
2. Save on shopping
There are plenty of simple ways to save money when you shop, so you make sure your money is stretching as far as possible for you. You can sign up to a cashback website and every time you shop, you can earn a portion of your spending back once your purchase is confirmed. Bored of searching for discounts? Add a browser extension that automatically finds and applies coupon codes at the checkout to make sure you never pay more than you need again.
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3. Pay yourself first
The cost-of-living crisis has drastically reduced disposable incomes but making sure to set aside money each month for your savings is so important. The building of a habit often comes down to making it easy to achieve, so automation can help you save regularly. Set up automatic payments to save a set amount of money as you get paid and you'll start to see your pot grow. You don’t have to put aside a large chunk of money each month; you can work with what you have and it’s never too early to start saving. Leave your savings to your willpower and you can end up with zero.
4. Have monthly money dates
Spend ten minutes each month reviewing your spending and reflecting on how you're feeling about all things financial, this will mean nothing to do with your money is ever coming as a shock and can relieve some of the anxiety that lots of us are facing now. Go through your bank statement and check that everything looks in order. You'll be able to get an idea of where your money is going and whether you’re spending money in areas you don’t realise. Plus, if there are transactions that you don’t recognise, check them with your bank in case they are fraudulent.
5. Start talking about money
If the idea of starting a conversation about money makes you uncomfortable, you're not alone. Yet talking about money at home, with friends and at work can help improve your relationships and your bank balance, and there is no better time to start. You don't have to dive in at the deep end; talking about a financial podcast or article you've read raises the topic of money without personal experience and emotions coming to the table straight away.
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This Girl Talks Money gives free advice online
6. Check your balance regularly
Getting into the habit of regularly checking your bank balance is one way to get on top of your money mindset. You might want to bury your head in the sand, but you always have to face the facts eventually and taking control of your financial situation can be hugely empowering. The more comfortable you are checking in with your money, the easier it becomes.
7. Compare prices online
We all tend to head straight to the same store every time we shop, but you might actually be paying over the odds. Next time you need to buy a branded product, check Google shopping first to find the best price and deals on the internet. You can often save yourself a healthy amount of money simply through switching where you shop.
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8. Write a shopping list
Whether it's a trip to the supermarket or a clothing refresh, write a list of what you need before you head to the shops. It'll give you focus and help reduce the temptation to spontaneously buy whatever you like the look of in the moment.
9. Subscribe and unsubscribe
Plenty of personal finance pros tell you to unsubscribe from marketing emails, but skip the fact that subscribers often receive great discounts, and with Christmas coming up these will definitely come in handy. If you have items to buy from a specific store or brand, sign up to their newsletter and once you’ve bagged your discount, you can always unsubscribe.
10. Shop second hand
Pre-loved shopping is booming right now, which means there’s never been a better time to get involved. Whether you're clearing out your closet or looking for a wardrobe update, head to secondhand platforms and charity shops to find yourself a bargain and shop more sustainably. It’s a win-win situation.
Learn to love secondhand
11. Use a roundup tool
Roundup apps are a clever bit of tech designed to make it seamless to save small slices of money. Every time you spend on your card, the app will round up the transaction to the nearest pound and put the difference into a savings pot. You don't notice the money being stashed away and it can add up quickly.
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12. Save items for later
Being intentional with money can be tricky in a world where instant gratification is the norm. Online shopping has a way of making you feel like you need to run to the checkout, so try adding items you like to the basket or saved list, then leave the site for a while. When you go back to the basket, you'll have a fresh view of whether you really do want those items after all.
13. Practice financial gratitude
It's so easy to focus on what you don't have, from the extra salary you’d like to the new season coat you’ve been eyeing up recently. But what about the things you do have? Start each day speaking out loud three things you’re grateful for that your money facilitates, however big or small they might be. Gratitude is a powerful thing when it comes to shifting our perspective.
Ellie was at Westfield in Statford giving out advice to the public
14. Get financially savvy
Learning about money management is an investment in your future, allowing you to make better, informed decisions going forward. If you're new to learning all about money, try listening to podcasts that bring the topic to life in an engaging, chatty way. Check out Money Unfiltered and FT Money Clinic.
15. Factor in fun money
As tempting as it might be to go full throttle on a spending ban in an effort to save money, particularly with the current crisis, restriction isn’t always the best answer. When it comes to building long term habits, building a budget that you can maintain is the priority, so make sure to factor in a small amount of discretionary spending into every month so that you can enjoy those spontaneous moments when you fancy a cinnamon bun or a quick take-out coffee.
Ellie has given free money advice sessions at Westfield Stratford City, she shares her top tips on Instagram and she co-hosts a podcast called @money_unfiltered.
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