Managing your finances in high-stress periods of recession can be difficult. Experts have warned that the UK is heading for a deep recession and with some people already feeling the pinch, it’s leaving people wondering what else they can do to secure their finances. Managing your money in times like these can be highly stressful, so we have created a guide to help.
Here is our essential financial checklist to make sure you stay afloat during tough times.
Decrease your expenditure to live below your means
If you find your disposable income decreases, maintaining your current expenditure may prove difficult. When this happens, the best thing to do is to adjust your spending and cut back on some of your expenses. If you are able to spend less money on travel, non-essential goods and shop wisely for recurring necessary items, you should find yourself in a more comfortable situation. If you don’t know where to start looking to decrease costs on what you need we’ve written a blog post here which will guide you to the best spots to shop for your basic necessities when you need to be frugal. If you don’t know what your expenditure is, or where your money is going – dont panic. We’ve also written a post on the best ways to create a budget for your needs here.
Engage with your loan providers
Maintaining an open line of communication with your loan providers is a crucial way to manage your finances. Making sure they are updated with any changes in your financial situation , and coming to new arrangements where possible, is important to keep your finances in check. Although this may be a scary phone call to make or conversation to have, it is worthwhile.
Check out our article on managing debt and engaging with your loan providers here. If you have a loan with us, and feel unsure in your repayment plan, check in with our customer service team here. Loan providers are there to help, and will work with you wherever possible.
Leverage government assistance There’s a wealth of support and advice available for you to access during times of financial crisis. Making sure you are aware of any government assistance you may be entitled to is key to maximising the level of resources you have. If you are currently unemployed, or making below a certain amount, check out if you’re eligible to claim Universal Credit here. If you are unsure and looking for advice, be sure to talk to someone at the Citizens Advice Bureau, or, if your problem specifically relates to housing contact Shelter’s housing advice team.
For more government resources and further assistance, be sure to check out the gov.uk website.
Find creative ways increase your income
If a recession hits, there are a number of reasons as to why you might want to increase your income. You may have been made redundant, had to take a paycut or are simply finding that money doesn’t go as far anymore. Or, you may want to increase your income to afford a luxury item. Finding more creative and flexible ways to earn money may be just the thing you are looking for in times of crisis. Understanding what you are skilled in, or the types of skills you can pick up to make a profit, is where you can start learning how to help ease your financial burden and increase your cash flow.
We’ve even written guidance on how you can do this from the comfort of your own home.
Further free resources:
Looking for more resources? In addition to our financial checklist, we’ve listed below some more free guidance on managing your finances during tough times.