Households are being hit by tax hikes, soaring energy bills and fuel costs, and real-term benefit and pension cuts, meaning it is increasingly important to take care of his money.
Review your finances
The first step to understanding your money is to look at your income, savings, debts, and expenses.
This will help you get to grips with your personal finances and allow you to make changes.
Andy Shaw, Head of Debt Advice Policy at StepChange, said: “Whether it’s sharing budget advice with friends or discussing household bills with a family member, having A good relationship with your finances starts with being able to talk about it.”
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Look on a smaller scale
Seeing a big increase in your spending can be cause for concern, but MoneySavingExpert.com founder Martin Lewis has some advice for viewers of ITV’s This Morning.
He said: “The worst thing anyone can do is look at the big picture.
“Look at everything you’re paying money for. First, ask yourself, ‘Do I have to shell out the money for this? And if you do, ‘Do I do it the way I do? cheapest and best?’
He explained that finding a cheaper contract for your broadband, mobile and TV can save you a lot, as nearly 16 million people are paying twice as much as they need to.
All the little changes like canceling unnecessary subscriptions and changing shopping habits can quickly add up and make a huge difference.
Mr Lewis urged Britons to ‘do everything you can’.
Grocery shopping is one area where households can save a lot of money.
You can also make simple exchanges between branded products and supermarket items.
But Money Advice Service research shows Britons who don’t write out a shopping list before leaving home spend three times as much.
It helps you plan your meals and throw away less food because 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 food.
She told Express.co.uk: ‘All you have to do is put any newly purchased food in the back of the fridge or cupboard and keep the most expired items in the front.’
Check your benefits
Many low-income households are deprived of the benefits to which they are entitled.
Mr Lewis encouraged everyone to use a benefits calculator to see if they can apply for additional help.
He said: ‘It’s worth talking to someone like Citizen’s Advice to see if there’s any help available on the benefits.