3 Tips for Handling the Cost of Living Crisis

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Whether it’s your weekly trip to the supermarket or your monthly mortgage repayments, you have probably noticed the steady increase in costs that you are having to meet these days. According to the Office for National Statistics, in October 2022, 93% of adults in the UK reported an increase in their cost of living as compared to a year ago.  This is largely due to rising food prices, household energy bills and petrol costs, leaving people with less disposable income each month.

With the festive season looming on the horizon, you may have concerns regarding your ability to pay for gifts, travel costs, and food and drink for your family and guests on top of your day-to-day expenses. As many households across the country struggle to make ends meet it can seem there is little you can do to take charge of your finances. Fortunately, there are some simple ways to increase your disposable income each month.

Find a Side Hustle
There are many great ways to generate an extra income stream alongside your nine-to-five. You could be paid to complete online surveys from the comfort of your one home or for taking part in market research and online or in-person focus groups.

Alternatively, if you would like to apply your particular talents or skills to your new side hustle, consider creating an online course that teaches people a specific skill such as piano playing, watercolour painting or portrait photography. This is a creative way to generate a passive income which could potentially lead to a successful new business.

If you have some time to spare, you may wish to do something more hands-on such as tennis coaching at the weekends, tutoring, jewelry-making, cake making from your kitchen or offering your services as a dog walker or childminder. Not only will you make some extra income through your chosen activity, but you will likely find great enjoyment in doing something that you love.

If you are struggling for inspiration, there are several side hustle apps which can help you generate some extra cash in a variety of different ways. Some examples include the following apps:

• Airbnb
• Amazon Flex
• Surveys on the Go
• Instacart
• DoorDash

Declutter
By decluttering your closets and emptying your basement, you will likely find you have a large collection of items which another person could benefit from. There are plenty of sites where you can sell your wares to eager bidders such as Ebay, Vinted and Facebook Marketplace. If you have some high-end goods such as couture or designer clothing and accessories, there are niche sites like Designer Exchange, Poshmark and Fashionphile which cater to the luxury market.

It can also pay to get a valuation of any antique items such as watches, glassware, paintings or family heirlooms you may have inherited as you may unknowingly be sitting on a veritable goldmine. If they hold significant value, these items can then be sold through reputable dealers, auction houses or antique fairs. 

If you are unsure where to begin, the following rules can make the purging process a little easier:

• The KonMari Method: This technique encourages you to keep only those items that speak to your heart or ‘spark joy’, and discard those that do not.
• The 20/20 Rule: If in doubt about discarding an item, if it costs less than $20 and can be replaced in under 20 minutes, you can let it go.

Go through your possessions to see what items can be sold to a new owner, making you some extra cash along the way.

Make Your Own Coffee
Long known to a nation of tea drinkers, the Brits have embraced coffee culture and regularly visit coffee shops for their daily caffeine fix. According to the British Coffee Association, Brits consume 98 million cups of coffee every day.

Whether you’re a creamy cappuccino fan or an americano aficionado, your weekly trip to the cafe could be setting you back more than you know. With the average person spending £2,210 in coffee shops each year, it can pay to find alternative and more affordable ways to source your daily cup of joe.

You don’t need a state of the art coffee machine to make great tasting coffee at home. Why not brew your own coffee by purchasing an inexpensive french press or moka pot? If you don’t have a coffee grinder you can use your blender instead to grind your beans to the correct consistency. Alternatively, there are many delicious instant coffees available on the supermarket shelves which can make your coffee in no time.

By swapping the coffee shop for a home brew you may also find you save money, as well as calories,  on other purchases such as pasties, muffins or cakes to accompany your beverage.

As this article highlights, there are many novel and enjoyable ways you can increase your household’s monthly income to make these unpredictable times a little less challenging.

*This is a collaborative post.