The rising cost of gas, electricity, home heating oil, food, etc., is affecting and will continue to really affect our lives and personal finances for the foreseeable future.
The never-ending upsurge in the prices of everyday essentials impacts us all in an extremely negative way. This upsurge is the outcome of inflation. Inflation can have an unfavourable impact on your financial future. It can also derail your monthly budget. Imagine a situation wherein you must cut back your grocery expenses due to skyrocketing gas prices!
To deal with the current headwinds of inflation you must measure and manage spending closely, so you don’t end up damaging your budget. Firstly, a household budget is not just necessary but essential now to ensure you manage the rising cost of living. The good news is setting up and managing a household budget has never been easier with open banking and apps. Information is power, and this is an essential first step. Once you know what you spend on average each month on e.g., groceries, electricity-heating, shopping, eating out etc., then you can easily set budgets on these personal finance apps and better manage and control your expenses.
The all too frequent coffees, lunches out etc. all which we consider “relatively minor” expenses really add up and have a very significant impact on your personal finances over time.
For example, switching utility providers every 12 months is also an essential step, to avail of 12-month discounts of up to 25% on offer to new customers from all the main utilities providers.
Key items to help better manage your living expenses:
- Information is power: easily track your expenses now using personal finances apps. Set budgets to help track and guide your weekly/monthly spend,
- Reduce unnecessary expenses, coffees, lunches out, buying branded products,
- Review and switch your utility providers every 12 months and save up to 25%,
- Review your mortgage, consider switching to get a better rate and consider fixing your rate given the backdrop of rising interest rates,
- Review your health insurance, savings can be made by reviewing your cover and including what’s most relevant to you and your personal/family circumstances,
- Review all monthly subscriptions, are they all necessary, you will probably find some you do not even use,
- Review all insurances; car, home, health, life, illness – savings are available here also,
- Do your keep weekly shop where the best value is overall, e.g., Lidi or Aldi, and shop using a list to avoid impulse purchases and use own-branded products more and avail of loyalty/shopping coupons/discounts,
- Finally, increase your income by renting a spare room to a student, the college term is short and the income is all tax free.
These small steps can and will super charge your personal finances. It’s in our own hands to avoid the repercussions of inflation by being deliberate about our living expenses.
As well as managing your spending habits better, set up a monthly savings plan no matter how small it might be, €50, €100 per month or what every amount you are comfortable with. If you lock in this habit, no matter the amount, it will also help underpin your personal finances going forward.
Azucko enables you to connect your bank accounts with these apps where they automatically categorise all your expenses and even allow you edit such expense categorisation to better reflect your exact situation.