As the cost of living in the UK continues to rise, many people are wondering how they will be able to afford to live in the UK in 2022. The average salary increased by around 5.4%, but this still may not be enough to cover the increasing costs of housing, food, and other essentials.
In this article, we will take a closer look at the average salary vs cost of living in the UK and explore some possible solutions for those who are struggling to make ends meet.
The Cost of Living in UK is on the Rise
The cost of living in the United Kingdom has been on the rise in 2022. The inflation rate, which measures the change in prices for goods and services over time, hit 9% in May 2022, highest in past 30 years. The average prices of living essentials like food and housing and other living expenses have also been rising, as demand outstrips supply. This has led to concerns that the UK’s poorest families are being squeezed by rising living costs.
The Average Salary Has Increased, But May Not Be Enough to Cover Rising Costs
The average salaries in the UK have increased by around 5.4% in 2022, but this may not be enough to cover even the average house price increase in the UK. A recent survey found that one in four workers are now struggling to make ends meet even with a wage growth, as compared to one in five in last year.
This is a worrying trend, as it suggests that more and more people are struggling to keep up with the cost of living in the UK when compared with their average wages.
Possible Solutions for Those Who Are Struggling To Make Ends Meet
If you are struggling to meet even your general living expenses, then here are a few possible solutions that you can consider:
1. Look for Ways to Earn Extra Income:
This could include taking on a part-time job or starting a side hustle to boost your income on top of your average wage and help you make ends meet.
2. Look for Cheaper Accommodation:
If you live in an expensive area, such as London, you may want to consider moving to a less expensive location. But before moving do check that what is the average house price, and other basic costs across different cities in England, Wales, Scotland and Northern Ireland.
This could help you save money on your accommodation costs and free up more of your disposable income to live a comfortable life.
3. Cut Back on Non-Essential Expenses:
If you are living on minimum wage and not being able to meet even the increasing food prices by living in the cheapest region of UK, it may be necessary to cut back on some of your non-essential expenses, such as eating out or the way you buy groceries.
Take a closer look at your budget and see where you can cut back on your spending. This could include buying groceries from affordable places, reducing your food shopping bill or cutting out unnecessary expenses.
This can help you free up more of your income to cover essential costs like taxes, rent and food.
4. Go for Loans or Credit Line:
If you are struggling to make ends meet even as a single person living in north east and that too on rent then you may want to consider taking out a loan or a credit line. If you are considering going for a credit line then Drafty can help you. This can help you cover your costs in the short-term, but it is important to be aware of the potential risks involved with taking on debt.
5. Consider Government Assistance:
This could include benefits such as housing benefit or jobseeker’s allowance. You can check to see if you are eligible for any benefits by visiting the gov.uk website.
6. Ask for Help:
If you’re low on your disposable cash, don’t be afraid to ask for help from family, friends, or charitable organizations. Ask them for a amount which you think you can save every month from your salary (excluding rent amount) and can repay them after a few months.
7. Look for Ways to Cancel Council Tax:
If you are on a low income, you may be eligible for Council Tax Reduction. This can help to reduce the amount of Council Tax you have to pay. You can check if you are eligible for Council Tax Reduction by visiting the gov.uk website.
How to Budget Your Monthly Salary vs Cost of Living?
If you want to make sure that your monthly salary covers your cost of living, then you need to create a budget. A budget can help you track your income and expenses and ensure that you are not spending more money than you can afford.
There are a few different ways that you can create a budget, but one of the simplest is to use the 50/30/20 rule. Under this rule, you would allocate 50% of your income to essential costs, such as rent and food, 30% to non-essential costs, such as entertainment and travel, and 20% to savings or debt repayment.
This is just one example of how you can budget your monthly salary vs cost of living. There is no right or wrong way to do it, but it is important to find a system that works for you and stick to it.
Final Words
The rising cost of living is a worry for many people in the UK. If you are struggling to make ends meet with your monthly salary vs the rising cost of living, then consider using some of the tips and solutions outlined above. Creating a budget can also help you ensure that your monthly salary covers your cost of living. With a little bit of planning and effort, you can make sure that you are not struggling to make ends meet each month.
What other tips do you have for those whose average salary is not enough against the rising cost of living? Let us know in the comments below! And be sure to check out our other blog post on ways to save money on your groceries!
Thanks for reading!
Disclaimer: We are not providing financial advice, these are just tips for informational purposes.
