Following the pandemic, households have seen their budgets tightened as businesses have often struggled to make ends meet over the past 22 months. With the end to the Government’s furlough scheme and the scrapping of the £20 Universal Credit uplift, organisations such as Citizens Advice have warned that low income earners are receiving less support than they were entitled to in recent times.
On top of this, energy bills and living costs have risen exponentially in recent months and are expected to go up again even further this April.
As a result of this, the importance of learning how to budget and save your cash has never been more needed for thousands of families this year.
Experts are now sharing their insight into how households can beat the rising bills of 2022 and budget like a pro.
Speaking exclusively to Express.co.uk, Peter Kimpton, the CEO and personal finance expert at Family Money, noted how vital a budget will be for people looking to be successful this year.
Mr Kimpton said: “In 2022 energy bills and living costs are expected to rise so it is more important than ever to ensure your budgeting habits are efficient.
“Begin by looking at your current budgeting habits and analyse how sufficiently these are working.
“Ensure you have a practical monthly budget in plan and adjust any of your spending goals accordingly to suit your lifestyle.
“See if there’s anywhere you can cut slightly more if possible – simple things such as forgoing your morning coffee and bringing in a flask from home instead can all add up to those all-important extra savings!’
The financial expert notes that it’s no longer enough to take into account essential utilities when it comes to arranging a budget.
According to him, in 2022 it is also important to include the likely additional costs that come from eating and going out, as well as shopping for non-essential items.
Mr Kimpton added: “Many people plan their weekly food shop and groceries in their budget but it is also vital to consider how often you eat out.
“From takeaways, daily coffees or buying lunch at work ensure you set aside a budget for these costs.
“If you eat out once a month or every day, you need to include this item in your budget. Breaking down where your food money is going will give you more control and motivation to limit your spending in these categories.”
According to Mr Kimpton, there is a special method families should implement to improve and enhance their budgets going forward.
He added: “Other factors people forget to take into account include purchasing gifts, leisure activities and purchasing clothing which is why we recommend the 50/30/20 rule.
“This is 50 percent for needs, 30 percent for wants and 20 percent for your financial goals.”
As well as this, the financial guru encouraged savers to take advantage of travel cards and discounts to improve their budgeting in 2022.
Mr Kimpton explained: “Monthly travel is another one that can really add up – often people will beep their oyster card without a second thought.
“But all those tube journeys add up, which is why it’s often wise to look into a monthly ticket if you’re someone that uses public transport often.”