{"id":874,"date":"2022-05-13T15:24:33","date_gmt":"2022-05-13T15:24:33","guid":{"rendered":"http:\/\/www.wealthatwork.co.uk\/lseg\/?page_id=874"},"modified":"2023-03-30T08:51:10","modified_gmt":"2023-03-30T08:51:10","slug":"money-management","status":"publish","type":"page","link":"https:\/\/www2.wealthatwork.co.uk\/lseg\/understand-your-finances\/money-management\/","title":{"rendered":"Money Management"},"content":{"rendered":"

[vc_row][vc_column][vc_column_text]Managing your money is key to successful financial wellbeing. In this section we will look at the current cost of living crisis, how to be careful with your money and energy, as well as the support available from the Government. [\/vc_column_text][vc_tta_tabs spacing=”10″ gap=”10″ active_section=”1″ no_fill_content_area=”true”][vc_tta_section title=”Inflation” tab_id=”1598004391146-1fb918ae-7c75″][vc_column_text]Cost of living increases<\/strong><\/p>\n

The UK\u2019s rate of inflation is rising at its fastest rate in 30 years \u2013 with energy, food and fuel increasing in price, in this section we will explore the different ways in which you can make your money go further.<\/p>\n

What is inflation?<\/strong><\/p>\n

Inflation is the term used to describe the increase in prices over time. The UK measures this using the Consumer Price Index more commonly known as CPI. CPI looks at the average prices of a typical basket of consumer goods and services, such as transportation, food and utilities. As the price of these goods and services rise and fall, so does the rate of inflation.<\/p>\n

How does this affect me?<\/strong><\/p>\n

Broadly speaking, this will mean that the purchasing power of your money will decrease as inflation increases. Inflation may impact people differently as we spend money in different ways. For a good indication on how inflation is impacting you, click here<\/strong><\/a> to take a look at the inflation calculator provided by the Office of National Statistics[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Budget planning” tab_id=”1596101930277-709d63a3-85be”][vc_column_text]Even if we\u2019re affected by inflation to a lesser degree, costs will still be rising in some of the goods and services we use, so it\u2019s a good idea to know what your income is, what your expenses are and how you can reduce those costs. One way to do this is by creating a budget. This can be achieved by using apps, spreadsheets or just a pen and paper.[\/vc_column_text][vc_single_image image=”915″ img_size=”large” alignment=”center”][vc_column_text]In its simplest form, a budget planner is a list of all of your income and outgoings. Your income would be everything you gain money from including your job, investments or any other income.[\/vc_column_text][vc_toggle title=”1. Calculate your income”]Your income will be all of your household income. Mainly, this will be your salary but can also include other income such as benefits, interest from savings, rental income or income from any other assets you may hold.[\/vc_toggle][vc_toggle title=”2. List your outgoings”]Your outgoings should be all of your expenses including direct debits, day to day living expenses such as shopping, debt repayments and all other expenditure including one off spends like an annual holidays or planned home improvements.<\/p>\n

To create an accurate budget planner you\u2019ll need to be honest with yourself. The easiest way to do this is by having access to your bank and credit card statements.[\/vc_toggle][vc_toggle title=”3. Work out your surplus\/deficit”]To work out your surplus\/deficit you need to add up all of your outgoings & expenses and deduct these from your total income.<\/p>\n

If you budget for your household, it is a good idea to do this with your partner if you have one. Not only will this enable you to get accurate figures but by working on this together, you\u2019ll both know where you are financially.<\/p>\n

To help you with this, there are a number of budgeting tools you can use such as Money Helper<\/strong><\/a> (online), Emma<\/strong><\/a> and Money Dashboard<\/strong><\/a> (apps).<\/p>\n

These Apps use open banking regulations to access all your financial information in one place. Doing this can highlight areas of spending that you hadn\u2019t spotted before. The Financial Conduct Authority (FCA) regulate both the aforementioned apps.[\/vc_toggle][vc_toggle title=”4. Take action”]Once you have completed your budget you will know if you have spare money or do not have enough money to meet your regular outgoings. Should you have a surplus, you may look at saving this and building an emergency fund or saving for another objective.<\/p>\n

If you have a shortfall you may need to revise your budget planner to identify areas where you can reduce your outgoings. Please continue reading for further hints and tips to make your money go further.[\/vc_toggle][\/vc_tta_section][vc_tta_section title=”Making your money go further” tab_id=”1596101930277-40a88ae8-1193″][vc_column_text]As well as helpful apps there are also websites and web extensions that can help you save money if you are willing to let technology do the hard work for you.[\/vc_column_text][vc_toggle title=”Price tracking websites”]Camelcamelcamel<\/strong><\/a> and idealo<\/strong><\/a> allow you look up the price history of any product by entering its URL or searching the product name. Camelcamelcamel is exclusively used for products on Amazon whereas idealo searches other websites across the internet.<\/p>\n

This allows you to see if today\u2019s price is a good price or if you\u2019re viewing an inflated price. Below is an example of how the price of a Nintendo Switch has fluctuated over two years from highs of \u00a3300 to lows of \u00a3229.
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\nYou can also set \u201cprice drop\u201d alerts so you receive an email or notification when a product reaches the price you want to purchase it at.<\/p>\n

This can be a useful tool. If you were looking for a present for an upcoming birthday or Christmas. By planning, you can make the purchase when it is at a reasonable price and avoid overpaying.<\/p>\n

Camelcamelcamel is also available as an internet browser extension.<\/p>\n

Idealo is also available as an app.[\/vc_toggle][vc_toggle title=”Discount and promo codes”]In addition to purchasing products at their lowest price you can also use these hacks to find promo or discount codes.<\/p>\n

Browser extensions<\/strong><\/p>\n

There are internet browser extensions that alert you when a promo code is available once an item is in your \u201cbasket\u201d. Some browsers are free which may be suitable for most people but there are also paid for versions which may give enhanced rewards and discounts.<\/p>\n

Get an alternate email address<\/strong><\/p>\n

Many companies email promo codes out to people who will subscribe to their newsletters or people who are willing to become free members. Often, people are put off doing this because they don\u2019t want lots of emails clogging up their inbox. One idea is to create a free alternative email address that you exclusively use for signing up to brands that you use regularly. This way, when you want to make a purchase, you can search your inbox for emails from the brand and use any current promo codes.<\/p>\n

Contact the company<\/strong><\/p>\n

The current cost-of-living crisis isn\u2019t just impacting consumers. As people are spending less money, businesses are always looking for new customers or methods of making more sales. It\u2019s worth contacting a company and asking if they have any current promo or discount codes before making a purchase, especially if an item isn\u2019t currently on sale or if you know they have a newer model or change of season coming up.<\/p>\n

Use a search engine<\/strong><\/p>\n

Sometimes users who have already got discount codes post them on forums or blogs so using a search engine to search for the company name followed by \u201cdiscount code\u201d can be an effective way of revealing discount codes that you haven\u2019t found elsewhere.[\/vc_toggle][\/vc_tta_section][vc_tta_section title=”Energy costs” tab_id=”1598004404159-e3974d58-0f8f”][vc_single_image image=”920″ img_size=”full” alignment=”center” onclick=”custom_link” img_link_target=”_blank” link=”http:\/\/www.gov.uk\/applying-for-probate\/apply-for-probate”][vc_column_text]Millions of households that weren\u2019t lucky enough to fix onto a long-term deal are experiencing a rise in their gas and electricity price. The price increases are linked to global increases in fuel prices and ongoing political events such as changes to the Government price cap.<\/p>\n

There are ways in which you can change your habits around the home in order to save money and reduce your carbon footprint.[\/vc_column_text][vc_toggle title=”Only use energy where you need it”]It\u2019s a good habit to get into turning off appliances when you no longer need them and just by turning appliances off standby and turning off lights you could save approximately \u00a375 a year.
\nOnly heat the rooms you use. Using smart devices with apps like Hive, Nest or Todo can work in the background to only heat the room you\u2019re in or adjust the heating settings.[\/vc_toggle][vc_toggle title=”Heat the human not the home”]Rather than heating a whole house you can wear more layers of clothing or purchase energy efficient heating items. MoneySavingExpert<\/strong><\/a> recently tested several items and found that electric heating blankets and heated vests can cost 3 pence per hour and items like USB hand warmers or insoles can cost less than 1 pence per hour to use![\/vc_toggle][vc_toggle title=”Consider how you cook”]Sometimes there\u2019s an alternative, less expensive way to do something. So, by considering which appliance you\u2019re using before preparing your food you could save money.
\nThe price comparison website Uswitch<\/strong><\/a> has published energy saving guides. These show that ovens use more energy, especially older less efficient ones. So, by heating up your food in a microwave or cooking using a slow cooker you could save up to \u00a360 a year.<\/p>\n

[\/vc_toggle][vc_toggle title=”Be economic with your washing”]If you have a dishwasher or washing machine, only use it when it\u2019s full and consider using Eco mode. These washes take longer but use less water and a lower temperature than most settings.<\/p>\n

Although an Eco wash may take longer, it can save money and ensure your items are still clean by washing for longer at a lower temperature. Heating the water is the most energy hungry part of the process so you can save money if you have the time.<\/p>\n

Once you\u2019ve done your clothes washing you should also consider how you dry your clothes. One of the highest users of energy in the home is the tumble dryer. If possible, dry items of clothes on a clothes horse or washing line and save approximately \u00a360 per year.<\/p>\n

When washing yourself, it could be a good idea to switch from a bath to a shower. The energy savings trust<\/strong><\/a> says that by switching a bath for a shower once a week you could save \u00a312 a year and if you can cut your showers down to 4 minutes per shower, you could save \u00a370 a year!<\/p>\n

\"C658124-WAW----LSEG-Infographics-04\"[\/vc_toggle][\/vc_tta_section][vc_tta_section title=”Government Support” tab_id=”1651653895873-43d67aee-9a44″][vc_toggle title=”Council tax”]If you\u2019re the only adult living in your household or you fit certain other conditions listed here<\/strong><\/a>, you may be able to get 25% off your annual council tax bill, even if you\u2019re only living on your own temporarily.<\/p>\n

By default, most councils charge council tax over a 10-month period. If you\u2019d like to spread the cost and make a lower monthly payment, most councils will allow you to pay your council tax over 12 months instead. You can contact your local council and request this.[\/vc_toggle][vc_toggle title=”Tax-free childcare”]The government offers up to \u00a32,000 a year per child towards your childcare costs from a registered childcare provider. This can include:<\/p>\n