Tax, investments and pension rules can change over time so the information below may not be current. This article was correct at the time of publishing.

How to protect your finances in the cost-of-living crisis

The energy crisis and cost-of-living increase has been noticed by everyone. The energy price cap increased in April 2022 and the cap is set to rise again in October. The rapid increase in the cost of energy is eroding people’s income and savings.

Inflation increases

The energy price rises are part of the increase in inflation which is rapidly eroding people’s income and savings. The Bank of England expects inflation to rise to 8% this spring and perhaps even higher later in the year,1 leaving cash savings worth significantly less in real terms.

With Cash ISA rates at all-time lows with the average easy access Cash ISA is only offering 0.26% interest per year1, meaning your cash savings could be losing money in real terms.

Now might be a good time to consider transferring your Cash ISAs into Stocks and Shares ISAs to try to stop inflation eroding your spending power. 

At Four Wealth Management, a Financial Adviser can discuss your saving and investment options with you to determine the best strategy for your own circumstances.

Book a no-obligation meeting to discuss alternative investment and savings strategies

It is important to have a financial plan in place to overcome the risk of inflation eroding your savings. If you do not prepare properly then you may have to postpone your retirement date or work more hours than usual just to sustain your standard of living.

How to use less energy

As well as looking at your overall financial position and making a financial plan to make the most of your savings to combat inflation, there are several ways that you can use less energy.

Energy-saving actions can be expensive but are good for the environment and your finances in the long term.

For example, insulating your loft can help you save 1,300kg of CO2 a year in a detached house, according to Energy Savings Trust.2 

Installing solar panels can save up to £505 and 850kg of CO2 a year in London.3

Improve your financial well-being

People with lower income will take the biggest hit when it comes to the increase in energy costs. However, the stress of the increase in prices can affect the financial wellbeing of everyone, regardless of wealth.

Financial well-being has a big impact on overall mental health. The cost-of-living crisis will cause stress for a lot of people. One way to improve your financial well-being is to regain control over your finances. If you are not confident about all of your options when it comes to your finances, a financial adviser at Four Wealth Management can help provide clarity.

Book a no-obligation meeting now

Create a financial plan today

To improve your financial well-being and financial security, you can book a no-obligation meeting today with one of our financial advisers to discuss creating a financial plan tailored to your individual circumstances. The meeting can be at your home address, at one of our offices or on zoom.

Call us on 0117 973 0500 or book online.

The value of an ISA with St. James’s Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than you invested.

An investment in a Stocks and Shares ISA will not provide the same security of capital associated with a Cash ISA.

The favourable tax treatment of ISAs may not be maintained in the future and is subject to changes in legislation.

If you transfer as cash you’ll be out of the market until the transfer is complete. You won’t lose out if the market falls but your money won’t be subject to any income or growth if the market rises in this period. If you transfer a fixed rate cash ISA before the end of the term, you may have to pay a fee.

1 This is money, 2021

2 Reducing Home Heat Loss: Roof and Loft Insulation, Energy Savings Trust, based on April 2022 prices

3 Generating Renewable Electricity: Solar Panels, Energy Saving Trust, based on March 2022 prices

Enquire Now

If you have any queries or would like to arrange a face to face meeting with an adviser for a no obligation review of your personal finances, simply book a call back using the form below. Alternatively, you can call us on 0117 973 0500.

The Partner together with St. James's Place Wealth Management plc are the data controllers of any personal data you provide to us. For further information on our uses of your personal data, please see the Partner's Privacy Policy or the St. James's Place Privacy Policy.

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How to protect your finances in the cost-of-living crisis
FourWealth Management