Cost of Living - Make Money Go Further & Supplementary Income

This month we are putting a special focus on the cost of living crisis. While we are limited in how much we can help (we’re still not in Government yet), we wanted to put together some advice on making your money go further and generating supplementary income if you need it. We hope you don’t. 

Making your money go further

We apologise that there is no silver bullet here, there’s no fun easy trick or ‘hack’ that will suddenly make you very wealthy. That doesn’t mean this might not save you a lot of stress and money. If you invest some time we promise your situation will improve. We forget that there is an emotional toll that comes with not acting, one that it’s worth putting up with the boredom of admin to alleviate, as well as putting you on surer financial footing. 

Budget

Firstly, let’s talk budgeting, which is a risky move because a lot of people will see huge excel spreadsheets scrolling before their eyes and want to leave. But wait. The internet is here and it can help. Many smart people have already made budgets that we can just copy. Phew. The one we prefer is Martin Lewis, The Money Saving Experts Budget Planner. The nation’s accountant. 

Knowing what comes into and out of our bank account can cause a lot of stress. Lots of us don’t even check our balance the week or so before payday, we can relate. However, in this climate it really is inadvisable, our money has to work harder than ever before and difficult situations can be avoided. 

Set the goal of budgeting to understand how much money you need a month. Banking apps kindly record each transaction we make (and sometimes send judgemental comments) so it’s easy to be able to tot up what we generally spend each month. From here we can see whether we spend more or less than we earn. 

At this point, we can consider a mindset change. Rather than looking for areas to “cut down”, which feels restrictive and sad, we can instead look at what we really enjoy doing each month. Which spending activities do we do each month that brings us the most pleasure? These are what we want to keep and maximise. This way we are making sure the focus of our budget is on increasing our quality of life not removing things we like. We’re willing to bet that there are more than enough things that you might be spending money on that you don’t enjoy that will add up to some very useful savings each month, monthly recurring subscriptions are a great place to look first.

More Savings

Here is a list of some ideas to help you save some money:

• Ask your employer if there are ways to help you support you if you work from home, read our article here which goes into more detail.
• Check out Martin Lewis’ thorough cost of living guide, especially the heat the human not the home if you are a remote worker.
• Even if you are in work you may be eligible for Universal Credit.
• Negotiate with your providers. More admin I know, but it moves money from massive companies back into your pocket, so it’s worth doing. This is a great guide that even includes a video on how to haggle for better deals with your providers. 
• Go to Help for Households to ensure you aren’t missing out on any Government help.

Supplementary income

At Escape, we often talk about the ‘side hustle’ or a passion project enthusiastically. We’re usually excited at the thought of people trying to turn their hobby or big idea into a reality. However, this time, it feels a lot sadder. Yes, people can still turn their dreams into reality this way, but for many people, a supplementary income may be necessary just to keep enough money coming in. Under the circumstances, it brings us no joy to suggest ways that might bring in a bit more money each week, but we hope it helps. 

If you have an idea for a project, things to sell, or something you want to create then read our piece 5 Steps to Super Simple Side Business Finance and how we built a side hustle with Escape the City.

Generating some fresh income can be as easy as just selling things you no longer need. Got a guitar you never play? Some clothes that don’t fit you anymore? A smoothie maker you don’t know how to use? Take the most attractive picture you can and put it on websites such aseBay,Facebook Marketplaceandgumtree. Websites such as depop are specialised in second-hand clothes.

Other options can include trying to get some tutoring work. If you have something you can teach, there are now many platforms where you can find flexible tutoring roles to bring in a little extra money. Other options include websites such as Fiverr and Upwork where you can do smaller tasks or projects for people/companies to quickly earn some more money. 

If you get in real trouble

If you find yourself in a very serious situation then we advise ringing The Citizens Advice Bureau and getting in touch with The Money Saving Expert.

#AskEscape 

At Escape, we’re here to help you create a future that you’ll love and get a job you care about. Right now, our futures need as much support as possible and we want to help. We’ll be running monthly #AskEscape campaigns where we’ll be taking questions from you on a range of topics from money and savings to interviews and CV tips. We’ll seek expert responses from our army of purpose-driven companies. This month we are focussing on the cost of living, if you have any questions, please get in touch with us on Twitter, LinkedIn, Instagram or by email at tim@escapethecity.org

Send us your questions!