Inflation: Price to be paid says expert
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Inflation has risen to staggering levels in recent months, meaning purchasing power has been at a decades-long low. Many people may feel powerless due to this tricky economic climate, but they could potentially make somewhat of a difference.
Express.co.uk spoke exclusively to Karen Barrett, CEO and founder of Unbiased.co.uk, who provided her take on how to help oneself during periods of high inflation.
She said: “From what the Bank of England indicates, the current rate of inflation could last until 2023.
“So, it’s time to consider what changes you can make to future-proof your finances.”
What can Britons do to help them if they are worried about inflation?
Ms Barrett said there are four key steps people may wish to begin putting into motion to assist them.
Firstly, Ms Barrett suggested people should pay off any outstanding debts they may have.
Debts can often have high interest rates, and if left unpaid for long periods of time, can quickly snowball out of control.
As a result, the expert recommends paying off as much debt as one can, as soon as possible.
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Individuals could switch, for example, to a lower interest credit card or consolidate their debts to help them become more manageable.
Once high interest debts are cleared, a person is likely to feel much more in control of their finances.
Next, Ms Barrett says reexamining one’s outgoings is a key way to manage finances and get in control of inflation as much as possible.
Mortgage payments are often the most substantial outgoing a person will have to deal with.
However, there are also other outgoings such as food shopping, energy bills and other day-to-day expenses which can be higher due to inflation.
In the past, individuals may have taken out subscriptions or set direct debits they no longer use.
Cancelling these can take minimal effort, but have significant results for those who do so.
By looking at one’s money and where it is going each month, Britons can identify where non-essential spending is happening, and curtail this as much as possible.
Ms Barrett added: “This is an area where you can make surprising savings.”
In the fight back against inflation, the expert encourages putting aside savings where possible.
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Due to the rising cost of living this could be a challenge, but may provide stability in an otherwise uncertain time.
Ms Barrett said: “Even if you are only able to save a few pounds a week – save!
“It will soon add up and make you feel more in control.”
Finally, Ms Barrett urges those who are uncertain to seek advice if they feel this is appropriate.
Professionals can often offer tailored guidance to suit a person’s individual circumstances.
If taking advice, this should be independent and regulated, and people should be aware it can come with a cost.
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