TQ_Cost-of-living-crisis-Blog-2

The Cost of Living Crisis

It seems there is no escaping the financial challenges that the vast majority of us will be facing in the short-term future. The statistics are so overwhelming that you could be forgiven for switching off completely and attempting to ignore them. We’ve been bombarded so many times with unprecedented events in the last two years that it’s become normal to feel a little numb to them.

Even the process of collating and processing the information has become a difficult task due to changes in predictions and new developments appearing on a daily basis. Of course, this all makes navigating through it feel like a full-time job and can add more anxiety to an already stressful situation.

Crunching the Numbers

So much of what we do at Top Quote as insurance brokers is concerned with the variables of what may happen in the future. When we’re presented with certainties and predictive data that we believe we can rely on, it’s easier for us to plan.

We want to be the best resource for all of our customers and the audience we reach on platforms such as this. So, let’s take a look at some of the information we have on the current cost of living crisis as a foundation to work from.

Inflation. Inflation. Inflation.

Inflation in the UK is measured in a rather simple way by the Office for National Statistics. They report on the prices of thousands of items through models such as the Basket of Goods. This basket covers everything from Household Goods and the cost of health services through to recent additions such as meat-free sausages and antibacterial surface wipes.

There is no escaping the reality that inflation is now rising at the fastest rate for around 30 years. Records up to February 2022 show a 6.2% average price rise in these goods from the same point in 2021. With the added uncertainty surrounding the devastating war in Ukraine, and an anticipated further increase in fuel prices this autumn, some predictions suggest it will continue to rise towards double figures for the end of the year.

Back to Basics

The short story here is that everything has become more expensive. The price of heating and lighting has doubled or more for some households. With any rise in wages failing to match the effects of inflation, we are therefore looking at an effective pay cut for most families.

Awareness and Alarm

The numbers illustrate this is the kind of financial crisis that our society hasn’t faced in more than a generation, and there seems to be an equal mix of panic and uncertainty when we try to look for advice online. Both responses are understandable, of course, as the honest truth is that the consequences will not be the same for us all.

Those who are fortunate enough to have savings or any kind of financial buffer can mitigate the effects on their loved ones accordingly. And those who are even more fortunate enough to have surplus resources could perhaps consider helping in any way they can. Whether that is through direct help through incredible institutions like Foodbanks, or just working collectively to make sure our voices are heard, holding organisations that could be doing more accountable.

It’s individual awareness that will inevitably guide us through this difficult period. We have to make our own decisions on what to do with our finances based on reliable information and data so we can learn when and where to cut back.

Top Quote doesn’t believe in the hard sell. We know that looking after your finances can be difficult and seem like a time-intensive task. We also know that a little bit of professional help along the way is always useful.

Contact our team now and start to get your existing insurance policy in order. You may find that there are better deals for you and your family out there.

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