Cost of living crisis: Top tips to keep your finances under control as prices spiral | Personal Finance | Finance

Households are being hit by tax rises, soaring energy bills and fuel costs alongside real-term benefit and pension cuts meaning looking after your money is increasingly important.

Review your finances

The first step to understanding your money is to review your income, savings, debt and expenses.

This will help you become familiar with your personal finances and enable you to make changes.

Andy Shaw, debt advice policy officer at StepChange, said: “Whether it’s sharing budgeting tips with friends, or discussing household bills with someone in your family, having a good relationship with your finances starts with being able to talk about them.”

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Look at a smaller scale

Seeing a sharp increase in your outgoings can be a worry but MoneySavingExpert.com founder Martin Lewis offered advice to viewers of ITV’s This Morning.

He said: “The worst thing anyone can do is look at the big picture.

“Look at every single thing you pay money out on. First, ask yourself the question ‘Do I need to pay money out on that?’ And if you do ‘Am I doing it the cheapest and the best way?’”

He explained that finding a cheaper contract for your broadband, mobile and TV can save you a lot as almost a 16million are paying twice as much as they need to.

Any small changes such as canceling unnecessary subscriptions and changing shopping clothes can quickly add up and make a huge difference.

Mr Lewis urged Britons to “do everything you can.”

food shopping

Food shopping is an area where households can make lots of savings.

You can also make simple swaps from branded products to supermarket-own items.

But research from Money Advice Service shows that Britons who don’t write a shopping list before leaving the house spend three times more.

This helps you to plan your meals and throw less food away as you are aware of the products in your fridge and cupboards.

Andrea Knowles, personal finance expert at vouchers.co.uk, recommends using the first in, first out method to rotate foods.

She told Express.co.uk: “All you have to do is place any newly bought food items at the back of the fridge or cupboard and keep the products closest to being out-of-date at the front.”

Check your benefits

Many low-income households are missing out on benefits they are entitled to.

Mr Lewis has encouraged everyone to use a benefits calculator to see if they can claim additional support.

He said: “It’s worth talking to someone like Citizen’s Advice to see if there is any help available on the benefits.”