The financial challenges are only likely to get worse in the months ahead ‒ by taking action now you can ensure you’re best placed to deal with it.
Back in February, we urged loveMONEY readers to take immediate action to get their finances into better shape.
It was already clear that we were hitting a cost of living crisis, and that some level of preparation was needed in order to shore up our finances.
In truth, I’m not sure we really appreciated the level of chaos and uncertainty ahead.
From the war in Ukraine to the fallout from the disastrous mini Budget, there have been all sorts of additional challenges which have put our money under even greater pressure this year.
It would appear that things are likely to get even worse before they get better, too. So what can you do right now that will give your finances a boost in the months ahead.
Get energy smart
It was always going to be important to be a little wiser with our energy use this winter.
While the Government’s energy price guarantee is welcome, it only limits the unit cost of the gas and electricity we use. As a result, the more energy we use, the higher our bills will be.
But this has become even more important given the Government’s U-turn over precisely how long the guarantee will run for ‒ what was originally going to be a two-year-long support scheme will now conclude in April.
We simply don’t know what will be in place after that point, in terms of help for the majority of households.
So getting smart with your energy use right now is a good idea.
Getting into good habits, like not leaving the lights on and being stricter with the heating could pay dividends, while this is also an opportunity to make changes around the home.
That could be installing draught excluders and insulation to retain heat, upgrading your boiler if it’s older and less efficient, and installing energy-efficient lightbulbs.
We've loads more tips to help you slash your energy bills here.
Save that support
Our energy bills are being subsidised by around £67 a month until April.
For many, that will be an essential form of support, which helps them keep their heads above water.
But for others, it may be something of a ‘nice to have’. Sure, it leaves the bank account looking a bit better, but it’s not the be-all and end-all.
That money could come in more useful down the line, however.
The money is automatically discounted from our energy bills, but if it isn’t a must-have right now, you could make a note to put £67 a month aside for the duration of the support.
Then, when the energy price guarantee ends, you will have a little pot of cash which you can devote towards what will likely be higher energy bills from next Spring onwards.
Be a sensible Santa
Incredible as it may seem, Christmas is just around the corner. It’s an expensive time of year at the best of times but could feel particularly painful this year given the general economic context.
I know that in the past, even when I’ve been pretty disciplined with my own budgeting during the year generally, I have let it slip a little over the festive period. It’s easy to get carried away.
However, that discipline will be crucial for many of us this year, embracing the role of ‘sensible Santa’.
First and foremost that means being a little more strict in terms of who you buy presents for ‒ in years past my friends and I have got presents for each other and our respective children, but that might not be happening this time around.
Once you have settled on an actual list of people that you will be getting gifts for, being prepared in picking out the specific items you want to get is a good idea.
That can allow you to shop around and identify the best possible deals.
Financial Christmas gifts for your loved ones
Cash in on cashback
There are plenty of cashback deals which can be utilised in order to give your bank balance a bit of a boost, particularly on bank accounts.
Many banks are very keen to win your custom and will offer you a cash bonus in order to switch.
For example, right now you could pocket up to £200 by moving to the likes of Nationwide Building Society, TSB or first direct.
That money could be in your account in time for Christmas, so it’s well worth looking into whether these accounts can deliver what you’re looking for from a bank account.
Making the most of cashback can also take the edge off your Christmas shopping too ‒ shopping online via like the likes of Quidco and TopCashback can help you make a few quid.
Read our complete guide to earning cashback for more.
Get what you’re entitled to
Many people are eligible for discounts and benefits which they don’t actually claim.
In some cases, this might be down to embarrassment, apathy or simply the belief that claiming that cash will be overly arduous.
But this can be some seriously significant cash that we’re talking about.
So do your homework into what schemes you qualify for, particularly if you’re a pensioner, and get that money.
Save on...everything
Making the changes above will undoubtedly help you get ahead of the game for 2023, but there are many more things you can do to slash your monthly outgoings in the weeks and months ahead.
From saving on your next mobile contract to cutting the cost of your weekly shop, this guide to saving money on everything has all the info you need.