The cost of living is making us review how we’re spending our money and how we’re saving. Although sustainability may not be the driver behind reducing spending, the rising cost of living has allowed us to review our finances, rethinking our spending habits and consider greener options.
We recently surveyed 2,000 people across the UK, from 21-55+ year-olds, with incomes ranging from up to £18k to more than £100k, to understand how the cost of living is impacting their financial situation.
According to our research, 83% of the people we interviewed are worried about the cost of living. While the majority are concerned about rising energy prices (84%), people are also worried about the cost of everyday items (74%) and the cost of living in general.
With the rise in the cost of living, many people are rethinking their spending and looking at what changes they can make to live a more sustainable and cost-effective lifestyle.
Here are some greener options for reducing your spending, making it easier to save money and improve your sustainability during the cost of living crisis.
Our research found 79% of people are concerned about the rise in fuel costs. With fuel prices changing all the time, driving your car is no longer the cheapest or most sustainable option. If you have to travel, you could consider whether any of your journeys could be taken by public transport, on foot or on a bike to help save money on fuel and reduce the carbon footprint.
Nearly 80% of the people we interviewed have been reducing electricity usage for financial reasons. The less energy we use, the less we need to generate, which means less damage to the environment and saving money on our electricity bills.
Turning off lights when you’re not in the room, unplugging devices and appliances from outlets, running dishwashers and washing machines on lower temperatures, are just a few simple things you can do to save money. If you’re in a position to do so, you could look at boosting your home’s energy efficiency. For example, adding insulation to windows, cleaning your ventilation system to improve airflow or finding out if there are green energy plans available in your area.
One way to be more sustainable and reduce the cost of living is to be mindful of what we’re wasting. Whether that’s food, energy or everyday items, ensuring we’re preventing ourselves from creating waste will help save money and have a positive impact on the environment. Try little steps like eating the food that’s about to expire before tucking into anything else, or using Tupperware instead of buying cling film.
One of the easiest ways to save money is to create a budget. Tracking your expenses and looking at which luxuries you could cut down on can help you understand what changes to your spending you can make and where you could be saving. Looking at what you have already, what you can reuse and how you can spend your money on things that last can also help to reduce your spending and live more sustainably during the cost of living crisis.
If you’re spending less because of the changes you’re making to reduce your bills and be more sustainable, then looking at where you can keep your savings is a great way to make sure you make the most out of your money.
This article is correct at time of publishing and for general information purposes only. We recommend you speak to a professional financial adviser for advice. You can find a financial adviser and further personal finance information at unbiased.co.uk .