How to Reduce Your Cost of Living

With the cost of living on the rise, many people are looking for practical ways to cut expenses without sacrificing their quality of life. For first-time buyers and renters trying to save for a home, every pound saved can bring homeownership one step closer. This guide provides actionable steps to reduce everyday expenses, manage debt, cut unnecessary spending, and build long-term savings, all while making use of tools like Klink to track progress and identify areas to save.

 

Everyday Expenses: Cutting Costs Without Cutting Comfort

 

1. Slash Your Food Bill

• Plan your meals - Creating a weekly meal plan and shopping with a list helps prevent impulse purchases and food waste.

• Switch to own brands - Supermarket own-brand products can be significantly cheaper than branded items without a major difference in quality.

• Use cashback apps and loyalty schemes - Apps like Shopmium and Too Good To Go help you save on groceries and avoid waste.

• Batch cook and freeze meals - This saves time, money, and energy compared to cooking from scratch every day.

How Klink Helps: Use spending insights from open banking to track how much you're spending on food and identify areas where you can cut back.

 

2. Reduce Transport Costs

• Get a railcard or bus pass - If you commute regularly, a season ticket or discount card can save hundreds a year.

• Car share or switch to public transport - Reducing the number of car journeys cuts down on petrol, insurance, and maintenance costs.

• Consider cycling or walking where possible - This not only saves money but improves your health.

• Use fuel-saving techniques - Keeping tyres properly inflated and driving smoothly can make a noticeable difference in petrol costs.

 

3. Lower Energy Bills

• Switch suppliers or tariffs - Even with energy prices fluctuating, checking for better deals or fixed tariffs can save money.

• Use a smart meter - Understanding when and where you use the most energy can help reduce consumption.

• Draught-proof your home - Simple fixes like using draught excluders and thick curtains keep warmth in and cut heating bills.

• Wash clothes at 30°C and air-dry - Using lower temperatures and avoiding tumble dryers can save on electricity.

How Klink Helps: Klink’s spending insights highlight energy bill trends, helping you stay on top of payments and avoid surprises.

 

Debt Management: Reduce the Interest Drain

 

4. Cut Down on Credit Card and Loan Payments

• Prioritise high-interest debt - Pay off credit cards and payday loans first, as these cost the most in interest.

• Look into balance transfers - A 0% interest balance transfer card can give breathing space to clear debt without extra costs.

• Overpay on loans if possible - Making extra payments on loans or mortgages can reduce the total interest paid.

• Avoid minimum payments - Paying just the minimum on a credit card results in long-term debt that costs far more.

How Klink Helps: The mortgage readiness tool checks your banking conduct for any warning flags that might affect loan or mortgage applications, giving you time to improve your financial standing.

 

Subscriptions & Unnecessary Spending: Trim the Fat

 

5. Cancel or Downgrade Unused Subscriptions

• Review all subscriptions - Streaming services, gym memberships, magazines—cancel anything you don’t use regularly.

• Share family plans - Many streaming services offer family plans that allow multiple users at a lower cost per person.

• Switch to free alternatives - There are free versions of most paid apps, from fitness to TV streaming and cloud storage.

• Negotiate contracts - Call providers (internet, phone, insurance) and ask for a better deal—many offer discounts to avoid losing customers.

How Klink Helps: Klink’s spending insights categorise recurring payments, making it easy to spot and cancel subscriptions that add up.

 

Long-Term Savings for Homeownership

 

6. Make Your Savings Work Harder

• Use a Lifetime ISA (LISA) - First-time buyers can save up to £4,000 a year and get a 25% government bonus.

• Set up automatic savings - Regularly putting money into savings makes it easier to grow a deposit.

• Round-up savings apps - These round up purchases to the nearest pound and save the difference.

• Consider high-interest savings accounts - Some banks offer better rates for fixed-term or regular savings.

 

7. Be Strategic with Housing Costs

• Look at house-sharing - If renting, splitting costs with a housemate can make a big difference.

• Negotiate rent - In some areas, landlords may lower rent if you sign a longer lease or maintain the property well.

• Move to a cheaper area - If possible, relocating slightly further from city centres can reduce rent and property prices significantly.

How Klink Helps: Klink’s home-goal feature allows you to track savings and see how long it will take to reach a deposit, while also identifying areas to cut back on spending.

 

Final Thoughts

Reducing your cost of living doesn’t mean sacrificing the things you enjoy - it’s about being smarter with your spending. By making small, consistent changes across food, energy, transport, and subscriptions, you can free up money for what really matters.

Download Klink today to track your spending, build savings, and ensure you’re financially prepared for homeownership.