How Can One Save Money This Winter As Inflation Hits 2.6%?

Inflation has been rising in the UK since March 2024, propelled by a spike in petrol prices last month. According to the Office of National Statistics, “CPI or Consumer Price Index rose by 2.6% in November 2024. It is high, according to October statistics, i.e., from 2.3%. The inflation rate for food items and alcoholic and non-alcoholic drinks increased in November. Things like clothing, footwear, and recreation were equally affected.

Additionally, basic expenses may increase.  Energy bills may rise marginally from New Year’s Day. For example- one may witness a high household tariff. You may now pay more than 1700 on your usual bills. You may expect to pay a bill that exceeds £1700 per month! The price may slightly increase by £21 on your bills.

Yes, the cost increase in household bills is alarming. However, you don’t need to fear much. You can still control your expenses towards the utilities and energy bills. The blog discusses the best strategies that might help you with that.

7 strategies to spend less on Winter energy bills and utilities

Yes, you can reduce your liabilities towards energy bills. It may help you save around 40% on the expenses. For example- keeping your boiler in shape may help you cut some pennies. Hire the boiler inspectors to check it for symptoms like- yellow flame, pilot lights and black marks. Attending to these issues early prevents energy loss. Hence, it promotes savings on burner usage. Here are other strategies that may help you save more money despite inflation:

1. Identify additional bills you pay

Yes, you may not know this, but you are paying more than you should. Check your credit report and current bank statements. You can also analyse the latest receipts. Such aspects will help you understand the extras you pay. It could be an unused subscription; old electricity connection or telephone costs you still pay for.

You may also spot other bills, like previous cable connections, that you mostly pay through direct debits. It will help you understand the aspects that you can save on. Cutting such an additional amount may boost your savings.

2. Insulate your home and floors

It is generally better to insulate your home as winter strikes. It helps you reduce the expenses on the household electricity bills. Insulation saves money by reducing heat that leaves your room in winter. It also limits the heat that enters during summer. It can lead you to significant savings on heating and other bills. Some of the best ways to insulate your house are by insulating your walls, hot water tanks and loft.

Here are some ways to maintain home insulation:

• Check insulation for any signs of wear, damage, and moisture. Check for compressed gaps for settled insulation. Address any issues immediately to maintain the functionality.
• Seal any gaps and cracks in your windows, doors, and loft. It will help you undermine the insulation’s effectiveness. You can use caulk as a sealant to seal the gaps. It will help prevent the air from escaping.
• Upgrade your insulation system (if needed). You can contact experts for inspection and use efficient materials for that.
• Protect the insulated home aspects from capturing moisture. Check your roof and walls. They must not reveal any leaking signs.

3. Save money on food and groceries

Yes, groceries will also get costly with winter inflation blues. Thus, you should shop wisely. Check the best ways to save money on one. You can do this by buying items in bulk. There are some food aspects that you can store for a long.

Check products with long shelf life, such as ingredients, dry fruits, etc. Additionally, check and shop for food items when they are the most affordable. For example, purchasing one late at night may help.  Also, always keep a list with you while shopping. It prevents you from buying items that you don’t need. Similarly, buy veggies and fruits only for a week. It eliminates excessive purchases.

4. Check your mortgage rate

It may be challenging to spot a cheaper mortgage deal in inflation. However, some mortgage providers don’t raise the rates immediately. Thus, you can utilise this moment to reduce your mortgage liabilities. Check the rates and remortgage the loan term to a better interest rate. It helps you fetch a lower monthly repayment amount and overall total costs.

Indeed, a mortgage is the most expensive part of a lifestyle. By reducing the amount, you can boost savings this year. Moreover, what could be better than paying less every month?

It is just about not delaying the opportunity to benefit from the low interest rates.

5. Check better savings interest rates

Yes, you can get better interest rates on the savings account. It will help you get fixed interest on your savings. However, compare and grab the highest interest rates that you can fetch. It will help you increase your bottom-line savings.  However, don’t exhaust your savings accounts.

It only hampers your financial stability. Thus, you can split your savings into different accounts. For example- you can consider an emergency fund for your unplanned expenses. One should have this account to counter such moments with ease. However, individuals with low savings and income cannot wait until the fund is built up.

What if you need urgent cash to cover emergencies? Under this condition, you can use the benefits that you receive from the government. If you are on benefits and need a loan today, don’t worry. You may provide proof of income from benefits to get a small loan. Yes, you may get one against it.

However, keep secondary income proof ready. It could be any small or part-time income that you may have. It will help you get the loan for any emergency that you must meet. It eliminates the hassle of missing out on the opportunity or panic the last moment.  Thus, you can rely on such a small facility to fix your small cash needs without worries. Unemployment does not exclude you from that.

6. Make important changes to your routine

Yes, what you do throughout the month directly influences your budget. Analyse what you spend the most on. You can check your credit report to know the costs. It will help you understand your latest utility bills, credit card payments and other aspects.

Redefine your investments and savings. Check how you can improve your savings and invest more. You can invest the money you save by cutting unessential costs. It modifies the income, helps save, counter emergencies, etc.

Apart from that, check what you spend the most on throughout the day. It could be transportation costs. Check whether you can save on that. Some travel or transport cards may help you with that. You can even utilise discounts as a student on bus or train trips.

7. Invest more in ISA this time

You can utilise high interest rates to your benefit by investing in ISA. If you have an account, you can invest a higher portion of that. Rising interest rates increase your overall contributions or the money that you get. It will help you boost your future savings and secure your retirement well. Check how much you can save and get after investing a particular portion.

Bottom line

These are some ways to save money this winter on inflation. Analyse the debts, savings, and investments. Check your current expenses and cut through the most unnecessary ones. It will help you identify the basic aspects that consume the most of your credit. Removing these will optimise your credit score.