The cost of living crisis has been impacting the British public’s finances for a while now and it doesn’t appear to be going away anytime soon. Interest rates on mortgages are the highest they’ve been for a while, food shops are costing more and energy prices remain significantly higher than they used to be.
However, in this crisis, there may be one positive to take away: Brits now have better money management skills. While it’s unfortunate that many are having to worry about their finances, it may be a silver lining that can help Brits save more money once this period of economic hardship is over.
We’ve put together a list of the main reasons money management has improved in Britain due to the cost of living crisis, so you can take some positives away from these difficult financial times.
With price hikes in almost every area of our lives, it requires more thought to go into our money management. This means budgeting our monthly spending better, not making impulse purchases and avoiding buying unnecessary items. Because of this, roughly one-third of Brits now believe they have better personal finance management skills, which they can take forward into later life.
Money management can sometimes only go so far and more Brits are now realising the value of acquiring a secured loan from a reputable lender. These are a great way for you to pay off debts caused by emergencies such as a roof leak or fixing a vehicle and have flexible repayment terms that you can add to your budget throughout the year.
Brits are now also adopting new strategies to dealing with price hikes and some of the more common ones include:
The cost of living crisis can be cruel and no one should feel ashamed if they’re struggling. Citizen’s Advice has tons of helpful information about how you can get support during your time of need, so you can get back on your feet soon!