Any parent knows that there is always going to be an expense that comes out of nowhere to torpedo our budget. It might be something small, like realizing that we have to pay for a couple of extra meals because your little one’s friend’s parents aren’t going to be able to make it on time. It may be something big, like a school trip that seems fancier than your last family holiday.
Unexpected costs can be really tough to deal with, but there are plenty of financial challenges that we know about that are on the way too. Without wanting to sound too gloomy about the situation, we know that 2022 is going to be hard on our budgets.
However, the good thing about knowing this ahead of time is that we can start to plan for it now. That may sound like a bit of a mixed blessing, but there are always ways to make those tough financial times a little easier for everyone with enough preparation. If you are looking for ways that you can manage in the months ahead, here are a few of the biggest issues on the way and what we can do about it.
Rising Energy Costs
Let’s start with one of the big ones, shall we? It will not have escaped your attention that we in the UK are going to be faced with some pretty staggering energy costs. This is because of the price cap raise in 2022, leading to an increase in bills. The good news is that the big price rise is coming in the spring, at which point most of us should hopefully be out of the period where we need to have the heating on for so much of the day. Of course, with the recent extreme weather events and so many named storms, it seems like banking on the temperatures going up is a bit more of a gamble than it should be!
First things first: look for ways that you can keep your energy usage down. That means looking at some of your machines that consume the most energy, such as your washer-dryer. Try to dry your clothes on the line or a rack outside if you can. If you do not have space to dry your clothes outside, then try to do bigger loads of laundry instead of several smaller loads.
Make sure that you turn out the lights in any rooms you are not using. Turn off your computers and televisions at the wall instead of leaving them on standby. You should also look at whether you could save money by switching suppliers or switching to a different tariff. You will need to be careful with this, however. Check the latest news to see if you would be better off sticking with your current tariff for now.
Petrol Costs Are Climbing
Following on from the above point, motorists can expect to keep paying more and more for petrol at the pumps. The prices have been going up for a while now amidst shortage scares (we all remember queuing around the block a few months ago). When it comes to petrol there is only so much that we can do to keep our spending down, but the biggest decision you can make in this area is about whether you need a second car. Many families have two vehicles, especially if both parents are working. However, we have seen that a lot of companies are going to continue to offer remote working as an option which should take a lot of pressure off the need to have two cars. Find out if public transport is an option from your location for your commute. Talk to other parents at your children’s school about the possibility of carpooling.
You May Need Help To Cover Big Payments
We have all been put through the financial wringer during the last couple of years, and many of us have been forced to eat into our savings just to get to the end of the week. Many of us have also been forced to take out the occasional loan to make ends meet. We all know that dealing with debt can be incredibly difficult and when they start to mount up, the mental health burden can become severe.
If you find yourself in a position where you need to take out pay day loans, it is so important to make sure that you do your research. You need to find the right fit for you so think about using a credit broker. Payday UK is an authorised credit broker that allows you to compare the rates and reviews of the different loan companies out there so you can make the best decision for you and your family. You should always read the terms and conditions very carefully to avoid ending up in a position where you owe more than you can afford to pay back. Reach out to their team if you have any questions.
Your Weekly Food Shop Is Getting More Expensive
Anyone doing their monthly budgets will have noticed that the price of food on the shelves is going up. There has been disruption at the supermarkets for a while now, following the supply chain issues that we saw over the Christmas period last year. However, it has become clear that the rising cost of food is here to stay for some time to come. If you want to cut down on the amount that you are spending, you should start by making a shopping list every week. Be very clear about exactly what you need and do your very best to stick to the list once you hit the aisles.
Plan your meals at the start of every week too. This way, you can think about what dinners you can cook that will leave you with plenty of leftovers. Batch cooking at the weekend will also help you to avoid impulse spending and splurging on takeaways, and it is always nice to know that you have got a meal ready to take out of the freezer after a tough day at work.
Once you’ve got your meal plans figured out, then it is time to think about what you are buying and where you are buying it from. It is easy enough to do a price comparison on the UK’s biggest supermarket (and the news about the Vimes index has certainly helped with that). Sign up for loyalty cards and apps at your local supermarket to take advantage of discount offers that may not be available to other customers. Try to buy in bulk where you can and buy store-own items instead of branded ones. Shop seasonally for fruit and veg to avoid paying high prices for food that may not even be that tasty and remember that tins are always a good way to stock up.
