With the rising cost of everyday essentials continuing to impact households and businesses alike, many clients have been asking us how they can better manage their money in the current climate.
While no single solution fits everyone, there are several practical areas that can help ease the financial pressure. This blog sets out some straightforward steps worth considering, whether you’re employed, self-employed, retired, or somewhere in between.
We believe good financial planning isn’t just for the future, it’s essential for managing the present. Here are some key areas to review if you’re looking to stay financially resilient in uncertain times.
1. Review Regular Outgoings – Start With the Essentials
Direct debits and standing orders often run in the background unnoticed. It’s worth taking the time to assess what you’re actually paying for each month.
- Streaming and media services – It’s easy to accumulate multiple subscriptions, but are you really using them all?
- Mobile contracts – If you’re out of contract, switching to a SIM-only deal can lead to significant savings.
- Insurance renewals – From home and car to pet and life insurance, shopping around at renewal time can yield better deals.
Tip: Print out a recent bank statement and highlight all regular payments. Cancel or review anything that’s no longer serving you.
2. Reassess Energy Costs
Although the energy market is stabilising somewhat, bills remain high for many. A proactive approach can reduce costs and avoid surprises.
- Use a smart meter to track and adjust usage.
- Check for fixed rate tariffs, which are slowly returning to the market.
- If you’re struggling to pay, speak to your supplier early – they are required by Ofgem to help arrange affordable payment plans.
Also check: Whether you’re eligible for any government support or discounts via the official gov.uk site.
3. Spend Smarter at the Supermarket
Grocery costs have jumped in recent years, but that doesn’t mean cutting corners on nutrition – it just requires a more mindful approach.
- Try switching to own-brand or budget lines where the quality is still good.
- Meal planning reduces food waste and impulsive spending.
- Batch cooking and bulk buying can be more economical – especially for families or those who cook regularly.
Tip: Set a weekly food budget and shop with a list. It’s simple but effective.
4. Address Debt Before It Escalates
With higher interest rates, even small debts can become expensive. Tackling debt early makes a real difference.
- Prioritise high-interest debt, such as credit cards or overdrafts.
- Consider 0% balance transfer cards if you qualify.
- Speak to lenders about restructuring payments if needed.
Important: There is free, confidential help available from organisations like StepChange and National Debtline.
5. Explore Ways to Increase Income
Sometimes, cutting costs isn’t enough. Additional income, even in small amounts, can offer much-needed breathing room.
- Take on occasional freelance work, tutoring, or online selling.
- If you have a spare room, the Rent a Room Scheme allows up to £7,500 per year tax-free.
- Check for unclaimed benefits, such as Universal Credit top-ups or Pension Credit.
Tools like Turn2us and Entitledto offer quick eligibility checks for various benefits.
6. Use Tax Reliefs and Allowances to Your Advantage
As accountants, we regularly see people missing out on simple but valuable tax reliefs.
- The Marriage Allowance can transfer unused personal allowance between spouses (if one is a basic-rate taxpayer).
- Work from home relief may still apply for some.
- Self-employed clients should ensure they’re claiming all allowable expenses, making use of the trading allowance, and considering capital allowances.
If in doubt, we’re happy to review your situation and make sure nothing is being missed.
7. Try Budgeting Tools to Stay on Top
Keeping track of where your money goes is essential, especially when things are tight.
- Apps like Plum, Snoop or Emma can link to your bank account and offer real-time insights.
- Traditional budget spreadsheets work well for those who prefer a hands-on approach.
- The cash envelope method is a great way to control spending on discretionary items.
Make it a habit to check in with your finances regularly – weekly if possible.
8. Build Up a Safety Buffer – No Matter How Small
Even modest savings can provide peace of mind and reduce reliance on credit.
- Start a simple emergency fund, aiming for at least one month’s expenses.
- Use regular savings accounts or cash ISAs to earn interest.
- Try round-up savings apps that collect pennies from everyday purchases and squirrel them away.
Remember: Consistency matters more than amount. Saving £10-£20 a month is a great start.
Final Thoughts: Small Steps Make a Big Difference
We understand that the current economic situation is tough, and for many, money worries are a daily concern. But with the right advice and a few practical changes, it’s possible to regain a sense of control.
If you’re not sure where to start, or you’d like help reviewing your tax position, income planning or budgeting, please contact our team. We’re here to help you navigate these challenges with confidence and clarity.
Need help reviewing your finances?
Contact us today for a no-obligation chat. We’re here to support you with practical, jargon-free advice that makes a real difference.