As living costs continue to increase, homeowners are finding it harder to make ends meet. Both the Office for National Statistics in the UK and the Bureau of Labor Statistics in the U.S. have reported consistent increases in the cost of living. Despite this, wage freezes and inflation mean that the average homeowner has fewer funds than before.
Whilst many people are spending less on luxuries, others are forced to make even more sacrifices to get their bills paid on time. If you’re feeling the pinch and you want to find new ways to balance your books, check out these savvy options to cope with the rise in living costs:
Switch Your Car
Depending on where you live, selling your car and relying on public transport could be an effective way of reducing your monthly outgoings. However, if you really need to keep your vehicle, switching to a different model could be a savvy investment.
Analysis suggests that electric cars can be far cheaper to run than their gas or diesel counterparts, so you could save money on running costs and save the environment at the same time. If you trade in your existing vehicle, you may even be able to avoid paying too much for your new electric or hybrid vehicle.
Rent a Room Out
If you want to minimise your household expenditure, taking on a lodger could be a fantastic way to share living costs. You can gain a substantial second income from renting out a room in your home, which can be put towards your mortgage repayments.
Depending on the size of your property and the average cost of rentals in your area, you may even be able to offset your entire monthly mortgage repayment with your rental income. However, you will need to check with your lender before you decide to rent out a room, as some mortgage agreements can put rental limits in place.
Short-term Loans
When money is tight, quick money loans can give you access to the cash you need and see you through the month. Unlike traditional loans, you won’t spend years paying them back, either. Short-term loans are designed to be paid off in just a few months, although some lenders will offer you repayment terms over a 12-month period.
Although no-one likes being in debt, having access to funds when you need them urgently can prevent serious issues. If you need to make urgent home repairs or have an outstanding priority bill to pay, for example, you may want to take out a short-term loan to cover the cost.
Coping with Living Cost Increases
The easiest way to cope with increasing living costs is to negotiate a pay rise or switch to a higher-paying role. However, if this isn’t a viable option in the near future, there are other ways to manage increasing outgoings.
By making small, long-term changes to your spending habits, you can maintain your lifestyle, treat yourself occasionally and successfully cope with the steady rise in living costs.
