Smart Ways to Handle Rising Cost of Living
Whether you’re trying to keep up your savings rate for a retirement goal or on an aggressive debt payment plan, the effects of rising living costs can still sting. Although inflation is not generally a bad thing, it becomes a problem when not everyone’s income keeps up with the trend. If you happen to be one of the unlucky ones feeling the rise in living costs, here are some clever ways to buck the trend.
Revisit Mortgage Payments
If you have a mortgage, you may have a little hope in reducing your monthly expenses to make room for rising living costs. Most mortgages are negotiated with a rate fixed for the first five years before it shifts to a variable rate that may be higher than before. Check your term and see if you are due for a repricing so you can prepare.
You can start comparing monthly payments if you choose to remortgage. But it also doesn’t hurt to compare the prevailing rate and check if the rates are better than before. Be aware that remortgaging is a long process that requires commitment and could carry costs you don't expect. Don’t forget to prepare a detailed remortgage comparison to help you decide if this move will save you money in the long run.
Online shopping may not seem to be the best advice on the topic of saving money, but it can help you stick to a budget. Shopping online reduces your trips out of the house saving you transportation expenses. More than that, doing most of your shopping online keeps you off shopping temptations you typically encounter on a day out in the shops. Shopping online also allows you to view the running balance of your cart keeping you aware of how much you’re spending and helping you follow a budget.
Stay Fit and Healthy
If you truly want to keep your living costs low, you must commit to a healthy lifestyle throughout your life. Naysayers might say healthier food are a tad more expensive, and an active lifestyle can cost more, but its benefits outweigh the resources required. Not only does it keep your medical costs low, but you could also quit some bad habits, such as smoking. You can also align your fitness goals with your savings goals by opting to walk, ride a bicycle, or take public transport to get there.
Rising costs of living may be an inevitable trend, and your income may or may not follow this trend, but that doesn’t mean you should give up and hope for state benefits. Try out these clever ways to beat the rising cost of living to come out on top of your financial goals in the long term.