We are heading for a cost of living headache. Energy bills are rising fast, food bills are set to soar, petrol is increasing and tax hikes will soon bite. All this leads to inflationary pressures, where commentators are predicting inflation nearer 4% by January.
Now is the time to draw up a fresh household budget. I am surprised at how often clients I speak to admit they seldom look at their bank statements or even check their payslips. Cutting back on outgoings can be offset by checking your income, outgoings and assets. There may be items on your bank statements that can be corrected quickly, I recently had a client paying 2x buildings & contents cover, they had never checked. It is essential to think about what you can afford. What are the essentials and then what may be a luxury. Put simply, look at what is coming in after tax, then list everything you are spending on an average month. Don’t forget to add annual bills such as annual car insurance for example. From this simple exercise it will be more clear if you still need to consider cutbacks. The cutbacks may be a gym membership, or subscription that you aren’t getting enough out of.
Finally maybe avoid impulse purchases, wait a day or so before you buy. Many say click & collect to avoid going into the foodstore helps stop that impulse.
For mortgages & general insurance, now is the time to review. It is free to check if your lender & rate are okay, just contact email@example.com