Can you better manage your finances in 'year of the squeeze'?

Committee councillors will be asked to agree to an investment of £302,000 for the retention payment scheme in 2022/23

Julie Hunt, managing director of Face to Face Finance, has revealed a few tips on how to better manage money. - Credit: PA

Amid rising energy costs and inflation, a financial expert has revealed tips on how to better manage finances.

Recent guidance from think tank The Resolution Foundation said that families face a £1,200 yearly hit due to the soaring cost of living - coining 2022 the 'year of the squeeze'.

But Norwich-based Julie Hunt, managing director of Face to Face Finance, said there are several ways to have more control over money.

"I often hear people say that they don't have any money so why do they need to manage it? But when things are tight, managing your finances is so important," she said.

"Know your finances, what's coming in, what's going out - of the outgoings which are essential? The mortgage or rent, utilities, insurances, food to eat.

"Which are lifestyle choice outgoings? Going out for meals, media packages, gym membership.

Julie Hunt, managing director of Face to Face Finance.

Julie Hunt, managing director of Face to Face Finance. - Credit: Julie Hunt

"By breaking these down, you can see far easier where savings can be made."

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The guidance comes after a group of 20 Conservative MPs penned an open letter to prime minister Boris Johnson last weekend expressing concern about the cost of living crisis for many in 2022.

Politicians said increasing energy prices would be a greater problem for people in the UK than in other similar countries, recommending the government reduce VAT on fuel bills and remove environmental taxes on energy to ease the burden on families.

Ms Hunt added that due to these increasing costs, she acknowledged things will be "very tight financially for many people" but added people can help their situation.

"Do you have any rogue payments going out on direct debit for subscriptions you no longer use?

"Food is an area where savings can be made, checking out the discount section, not buying ready meals, making food from scratch in bulk and freezing.

"Check out if you are in a fixed deal for your utilities or mortgage, could you be paying less elsewhere?

"Don't forget to check balances on old savings accounts or investments, it's estimated there is over £500 million of unclaimed money in lost bank accounts in the UK."