- Everyday expenses are soaring because of rampant inflation, supply chain crisis and increasing bills, interest rates and taxes.
- Experts predicted that the coming year may further increase the burden on your budget.
The year 2021 ended on a tight note after things were a little more squeezed than normal due to the rising cases of Omicron. Everyday expenses are soaring because of rampant inflation, supply chain crisis and increasing bills, interest rates and taxes. Experts predicted that 2022 may be a bit harsh initially further increase the burden on your budget.
Energy bills may increase significantly from April as well as interest rates is expected to rise from 0.1%, taxes may rise to £3,000 (US$3,975) per household and 2.25% points will be added to National Insurance in April this year.
Further, the one-year suspension of triple lock on state pension will give pensioners an increase of 3.1% in line with CPI inflation, but since the decision was taken the inflation has increased massively. This has been a matter of concern among the pensioners and consumers over the risk of having to dip into their savings or rack up debt just to keep going.
For money saving tips, experts feel that any saving at this point of time may help you to pay off your debts or you may also put that amount in emergency funds for times when you may need sudden money. Or you may put it in specific savings schemes, such as retirement, house deposit or holiday.
Here are some tricks to boost your income in 2022.
- Stick to your budget
The most important and the oldest financial trick is budgeting, to get on the top of your spending and to achieve your goals. Create a monthly budget and regularly review it, or you may consider setting daily or weekly targets for your budget. You don’t have to buy things that you don’t need, so whenever your salary is credited to your account, first keep a significant amount aside as saving.
To prepare a budget you may consider 50/30/20 rule. In this you need to break your income into three parts, 50% of your income need to kept aside for essential spending such as bills, insurance premium, house rent and groceries, 30% goes into things that you want to do such as shopping, hobbies and traveling and 20% goes into your saving, investments and paying off debts.
- Buy cheaper
If you are planning to buy something new, use price comparison websites such as Idealo, Price Runner, or Google Shopping to see for how much retailers are selling it and while making payments use free browser extension such as Pouch, which gives you a notification of any discounts or deals on the item you’re about to purchase. Some retailers use anchor pricing to trick the customers into thinking that they’re getting items in better price but check the product’s pricing history. While shopping, try to use cashback or reward card as you can earn money or vouchers on your purchases, but these cards only work if you pay them off in full each month and best cards are only available to those who have excellent credit scores.
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- Cut your grocery bill
Grocery shopping makes up a largest proportion of you budget. According to the charity Waste & Resources Action Programme, a family could save up to £730 every year just by reducing their food waste. You may consider using cheaper ingredients such as chickpeas and pulses to add nutrition to your meal and shop for whole month once as it takes away the temptation of overspending. To avoid waste and overspending, plan your meal in advance, look for the better ways to store your food, use frozen vegetables, meat, and fish to reduce cost.
- Avoid New
Instead of paying out for more products, you can make some savings by choosing second-hand. You can buy second-hand products from charity shops or dedicated online charity shops. You can borrow dresses, toys, books, and other items from rental markets in lower prices.
Also read: Is UK pension system flawed?
- Know about consumer rights
To protect yourself from any scam and to save money you should always know about your rights, how and when you can complain and when you can ask for compensation when something is not right. You should go though the Consumer Rights Act 2015 when it comes to standing for your rights against unsatisfactory or faulty goods or services and broker.
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But, when you buy anything it’s your responsibility to check the terms and condition carefully and the timeframe for repairs, returns, and refunds. You can register a complaint to Ombudsman. They can help to you resolve a complaint without going to court. Organizations such as Trading Standards or Citizens Advice can also help you with complaint.