A study of 2,000 adults found that about eight out of 10 (77%) are ‘concerned’ about rising inflation and its impact on their bills and daily expenses.
And 55% have already tried to meet rising costs by giving up luxuries or reducing unnecessary expenses, including eating out, new clothes and takeaways.
Inflation rose to 5.4 percent in December – the highest level in 30 years – and is projected to reach 7 percent this year, leaving millions with food, clothing and other necessities. Bills will increase.
Rising energy costs mean bills are rising, and many are facing an increase in planned national insurance in the coming months.
To help combat rising inflation, the Bank of England has raised the base rate to 0.5%, and while being helpful to some, it also means not agreeing to a fixed rate agreement. Living homeowners face higher mortgage payments.
Understand how inflation is rising.
Now, the savings and investment app Moneybox has created one. Inflation time machine To help people understand how inflation can affect their individual monthly expenses.
It also aims to help them feel better when considering what they can do now to counteract the effects of inflation over time.
This is according to research which also found that 39% of adults want to plan ahead with their finances to ensure that they can continue their current lifestyle in spite of increasing living expenses. Sustain life
And 32% think raising their money for the future is more important than ever, 18% are trying to be brave with their savings and investments.
Charlotte Oates, a spokeswoman for Money Box, said: “For many, this will be the first time they’ve seen a significant increase in inflation, so it’s understandable that the cost of living is low. Sugar and uncertainty are growing.
“The problem with inflation is that it is often felt only once your money is spent, and you realize that it is not spreading as it used to.
“The inflation time machine will help give you a clearer picture of how you can be affected, so that you can plan ahead to achieve your financial goals this year and in the years to come. Be able to move. “
The study also found that out of the lucky ones who have some money, stocks and shares are looking to ISA to increase their money by 25%.
About one-third (32%) are looking for a wide range of investment opportunities, including opening individual stock or general investment accounts, and 14% are open to investing in cryptocurrencies.
Others are planning to invest in property (17%), invest in Lifetime ISA (9%), Premium Bonds (22%) or Fixed Rate Cash ISA (19%).
Energy bills are rising sharply.
The study also found that currently, the average adult spends £ 270 per month on food and £ 148 on gas and electricity.
However, it appears to be rising after regulator Afjim raised the price of energy, which means that many people can see an increase of about 50% in their energy bills.
An additional £ 46 per month is spent on their water bills, £ 116 on fuel or transport, and £ 50 on their mobile phones.
When it comes to luxury, £ 50 is spent on nightouts while an average of £ 41 is spent on takeaways each month.
On average, Britons also try to save or invest about a fifth of their monthly income.
Conscious 78% are already making changes in their spending to meet the rising cost of living, while 36% are spending less on things they don’t need.
About 3 out of 10 (28%) are budgeting more while 25% are trying to spend more on their savings.
Other pollsters using OnePoll are selling things they don’t need (23%), going out less (22%) and shopping second hand (17%).
Charlotte Oates added: “Inflation can affect everything, from raising the price you pay for essentials, to reducing your hard-earned cash savings.
“In order to maximize your cash savings over time, interest rates need to be higher than inflation. If not, you are really losing money.
f you already have a rainy day fund, and you’re looking for the long term, investing is one of the best ways to increase your money over time and offset the effects of inflation. Is one
“We hope our tool will encourage people to take some time to consider their options and feel ready to face the coming months and years with greater financial confidence.”
The best way to deal with rising costs
1. Spend less on things you don’t need.
2. More budget
3. Invest more in savings.
4. Sell things you don’t need.
5. Go out less
6. Shop with the other hand.
7. Find a hobby that generates other income.
8. Invest money in stocks and shares.
9. Find a new job.
10. Open a savings account.
11. Ask for a pay rise.
12. Talk to a financial advisor.
13. Use an app to track expenses.
14. Invest money in cryptocurrencies.
15. Go for promotion.