Amid economic uncertainty, are you doing enough to maximise your money?
The ongoing cost of living crisis remains at the forefront of public consciousness, with an overwhelming 87% of adults citing it as the most important issue facing the UK today.
This is according to the latest Opinions and Lifestyle Survey from the Office for National Statistics (ONS), which also found that 66% of participants claim that the cost of living had increased over March 2025.
“Consumers are still struggling with the cost of living, and while some might be optimistic about the future, there are still many people finding it a challenge to cover rising costs,” commented Rachel Springall, Finance Expert at Moneyfactscompare.co.uk.
However, while it may seem overwhelming, there are still simple but effective approaches to help you take control of your finances.
Stick to a budget
While it can be daunting to confront your finances, creating and sticking to a budget can be one of the most important steps for tackling rising expenses.
This can involve setting yourself a monthly allowance based on your income and outgoings, or budgeting as you go by staying mindful of everyday spending. If you find your outgoings exceed your income, it’s likely your finances will need an overhaul to avoid falling into debt.
It could be productive to work out ways to cut back on unnecessary purchases or to explore cheaper essentials to help stretch your money further. This could include reviewing utility providers or cancelling any unused subscriptions.
Our guide outlines more in depth, the different ways of budgeting your money and can help you find the one that works best for you.
Build a safety net with your savings
As of February 2025, over £300 billion was revealed to be sitting in current or savings accounts earning little to no interest, according to data from the Bank of England.
This marks a 19% increase compared to a year ago where this figure stood at over £250 billion.
While it can be convenient to leave your money in a current account, building a safety net with your savings can give you financial security and can be a great way to cover any unforeseen expenditures.
Prized for their flexibility and high interest rates, easy access accounts can be ideal for savers looking to put away any spare cash each month for a rainy day fund that can be accessed on short notice.
For those with larger savings pots who may be at risk of breaching their Personal Savings Allowance (PSA), ISAs can help shield your earning from tax. But, you’ll need to consider flexible options to be able to dip in and out of your account without impacting your ISA allowance.
Nevertheless, actively searching for competitive returns on your hard-earned cash can help you increase the size of your investment more quickly and can help keep your earnings from being eroded by rising inflation.
