Living Frugally During the Cost of Living Crisis

Money is tight for many of us and a lot of people are currently tightening their purse strings to get by. This is fine and it’s important that we all do what it takes to ensure that we can pay our bills and stay out of debt right now. But what can you do to help yourself financially that you might not have thought about right now? Here are a few suggestions that might come in useful for you!

Insure Your Belongings

When people cut costs, one of the first things to go tends to be insurance. They may think that they’ve never claimed on their policy, so they simply don’t need it and would rather run the risk than fork out the monthly insurance premium. But this is a mistake. You never know when problems may strike and it’s always better to be insured so that you can easily replace your belongings. During a cost of living crisis, chances are, you’re not going to have the funds set aside to replace a kitchen appliance or other costly household items. You also want to hold onto things like life insurance if you have dependents – just in case. Of course, there are ways to save when it comes to insurance. Use price comparison sites to compare different providers, their policies and their prices. You may be able to find a better deal. If you do, your current provider might even price match to keep you as a customer.

Opt for a Used Car

A lot of us spend a lot of money on car leases, car finance agreements, and more. If you’ve got your car on credit or a finance agreement, you may want to consider handing it back at the next opportunity in your contract and considering a used car instead. Sure, having a new luxury car is desirable. But you can often find that a second hand car will perform just as well for a much lower price tag. Of course, if you’re buying used, you need to make sure that you’re using a reliable dealer like edmunds. Finding a dealer with good reviews for both new and used cars can give you faith in them to only provide you with something of good quality that will stand the test of time.

Reduce Luxury Spending

Sure, nobody likes to cut out the things that they enjoy. But if you’re finding that life’s luxuries are digging you into debt, it’s time to cut them out, at least for now. This will place less pressure on you when it comes to paying for the things that matter and the things that you are contracted to pay. This could range from healthy food to kids’ school trips to finance agreements. You’re really going to need to prioritise what’s most important right now.

Nobody likes cutting back, but it’s important to stay out of debt where possible during times like this – as we’re all unlikely to have the spare money to pay the debts back as agreed. Keep the information above in mind and it should help you down the line!

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Lisa Ehrman

Lisa has been blogging since 2013, and loves sharing resources and ideas for living a simple life. To get free printables, bonus words, and more - sign up for the newsletter.

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