How People Are Getting By During the Cost of Living Crisis

The cost of living crisis has been putting more and more pressure on UK households over the last couple of years. The cost of food, fuel, and rent is higher than ever and energy bills are continuously increasing. Meanwhile wages remain stagnant, leaving many people struggling to make ends meet.  

With that in mind, let’s take a look at some of the ways people are managing their budgets to stretch their incomes further. 

Using Budgeting Apps 

Tracking every penny spent is an effective way to work out where the bulk of your income is going and how much you’re spending on unnecessary items. But instead of creating complicated spreadsheets, people are relying on budgeting apps, which have made it quick and easy to track these expenses. 

By gaining a clear picture of their spending habits, people are able to make adjustments to their budgets accordingly, reducing spend on non-essential items and ensuring enough of their wage has been allocated to necessities like household bills. 

Leveraging Discounts, Sales, and Loyalty Schemes 

Particularly with Christmas just around the corner, people are making use of the ongoing sales and discount events, such as Black Friday and Prime Day, to get gifts and essential items. Additionally, signing up for loyalty schemes with their favourite brands is helping people reduce costs in the long run. 

Seeking Financial Support 

Many people are having to rely on financial assistance through support schemes or benefits to supplement their salaries. Others have opted to use short-term solutions such as a wage advance, which means employees can access a portion of their pay before their typical payday. This bridges the gap between paydays and offers temporary relief from cash flow issues without having to rely on high-interest loans.  

Unfortunately, some people have no choice but to take out loans with high interest. And although these are giving people immediate relief, they can have a lasting impact. This often leads to further financial strain later down the line. 

People Remain Resilient 

From making use of budgeting apps and leveraging discounts and loyalty programmes to seeking financial support, people are employing a variety of methods to make sure their incomes cover their basic needs. However, with costs continuously rising and wages failing to catch up, the financial pressure caused by the cost of living crisis doesn’t seem to be going away anytime soon.