Saving money in the time of inflation
Tips on transportation, housing and personal Finance
So far this year, the inflation rate in the United Kingdom has exceeded 9%. Although it was announced that subsidies and a cap on energy bills (£2,500/year for the next 2 years) will be put in place, there is still the possibility of a wage-price spiral inflation caused by salary raises. The soaring prices in transportation and logistics caused by the Russian-Ukrainian War also adds to various costs. The Bank of England expected that the inflation rate in the UK may exceed 11% in October! And that is why we have prepared some money-saving tips here. We hope this will help everyone!
On Transportation:
Maintaining a steady speed while driving can save fuel. You may also consider purchasing an electric vehicle: as the UK Government has already announced a future ban on the sale of first-hand petrol/diesel vehicles in 2030, now may be a good time to start switching to greener vehicles!
If you have a petrol or diesel vehicle, you can make good use of different petrol station price comparison apps or online social platforms to bargain-hunt for petrol.
Use public transport for your trips! Various railway and bus companies offer monthly/multi-trip ticket discounts. The UK government has also announced that the bus fare will be capped at £2 from January to March in 2023.
You can buy tickets online in advance if you travel by train for better bargains. And if your journey is short, consider buying tickets directly on the train company's website to avoid the service surcharge of big booking websites.
In the UK, train tickets are priced according to time slots and available seats. Buying tickets early and travelling during non-peak hours (e.g. Saturday, Sunday) will make your journey cheaper. British trains are often delayed or cancelled, and if the delay is long (more than half an hour), you can apply for a partial refund.
On Housing:
Pay attention to the energy efficiency of your home (EPC rating), with A being the best and E being the poorest - meaning that you need to use more energy to keep your home warm. You can upgrade the energy efficiency of your home through remodelling it, or you can choose a place with better energy efficiency when renting.
Pay attention to the orientation of the house and choose a residence facing south or west, so that you can get more sunlight in summer and keep warm in winter!
Even in the same city, the council tax bands for different locations and different types of buildings may vary. You can also apply for a discount if you live alone and with full-time students.
On Personal Finance:
Pay attention to the ratio of work salary to pension contributions. Your pension contributions are tax-free.
Check whether there is any error or omissions in the tax code. You can request a tax refund if there is an error. And, although in the UK you have to file tax returns for overseas (including Hong Kong) income, you do not need to pay tax for the same income twice in Hong Kong and the UK. So if you have already paid tax in Hong Kong for your overseas income, remember to apply for a tax refund in the UK.
If you work from home, you can apply for tax relief to cover the increased household expenses of working from home.
