As many of us will already have experienced this year, it is getting more difficult to make your monthly income go further, with the general increase in the cost of living, skyrocketing inflation and an increase in energy bills. Although the rocky economic climate is not ideal, there are ways that we can put ourselves in the best position to make it through the worst of it. Online payday loans can help if you are strapped for cash and you’re faced with an urgent expense, but saving, budgeting, and working on efficiency can help you get the most from your income. Read on as we take a look at some of the latest impacts on your monthly income.
The cost of living
This year, we have suffered from an increase in the cost of living. This is due to a few factors like the impact of the pandemic on businesses that are trying to make their money back, Brexit and various conflicts around the world. All these issues have manifested themselves in the prices of almost everything going up. You may have noticed that your weekly shop has increased in price even though you’re buying the same products. You may have noticed that your train or bus fare to work has increased – this is all due to the cost-of-living crisis that many countries around the world are facing. Unfortunately, this will have an impact on your monthly income, as it is unlikely that your pay is increasing in line with this factor. Your monthly pay check may not stretch as far as you’d like it to, and it certainly won’t leave you with the same amount of money left over each month!
Rising interest rates
Along with the general cost of living crisis, many of us have seen interest rates increasing. This is due to inflation. Banks use increasing interest rates to manage inflation, but it also encourages people to save money. Increasing interest rates generally means that we will all spend less and borrow less, which allows for the economy to slow down, and allows inflation to becomecontrolled. Interest rates are not good for those of us that have mortgages or are looking to buy a house, as rates and monthly payments go up, meaning that your income may not be able to cover your mortgage.
The amount that you spend on energy each month will have most likely shot up over the last few months. The energy crisis is something that all of us are facing, as companies increase the cost of heating our homes. This is a worry for many, especially as we approach the winter months. There is an energy price cap that has been put into place so that each home will not have to spend over a certain amount a year – however, this is one of the issues that will be affecting your monthly income the most, so checking to see if you are paying too much and comparing prices with other suppliers may be advantageous to save you some cash.
How to make your money go further
Dealing with these various issues andwith the price of almost everything that we need to live comfortably increasing when our wages are staying the same is difficult. But try not to worry – there are ways that you can make your income go further, you just have to know how! One of the best ways is to make and stick to a budget, this can help you to live within your means, and can help you to identify where you can make savings.
If you are struggling with your energy bills, you should make sure that your home is efficient, for example blocking any drafts, and changing to energy-saving lightbulbs to help you save where you can. As for rising interest rates, there is not much we can do about that, unfortunately, however, you could use this time to save for the future, so that you have a pot of savings to fall back on when you need it most.