As prices soar and the country grapples with the effects of a cost-of-living crisis, some people may me feeling the pinch more than others, especially as winter rolls around. Those with a significant other may benefit from sharing the cost of household bills and supermarket trips with their partners, but for single people, the cost of living lies solely on their shoulders.
According to Alice Haine, personal finance analyst at Bestinvest, people living alone aged between 25 to 64 spend an average of 92 percent of their disposable income, compared with 83 percent of two-person households, meaning the cost-of-living crisis will hit harder for singletons. “The buck stops with them,” Alice says.
“They must shell out for rental or mortgage costs in full, along with utility and food bills and other household costs such as insurance.”
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The situation can be even worse for single parents, with childcare costs and less time available for work or “side hustles” making things even more challenging. But with these handy tips from finance and dating experts, you could reduce your financial burden this winter.
Housing
Single people are less likely to own their own home, while a greater proportion of their income is often dedicated to housing costs such as rent or mortgages and household bills. This can make it harder to build up savings and provide a financial cushion should it be needed.
Where possible, one way to mitigate costs is to share your home with someone else. Alice says: “While younger people often share their home with friends to split the bills, older single people could consider taking in a lodger if they have a spare room or an outside annexe, or renting out part of their property.”
Not only could you share the cost of bills, you can also take advantage of various financial incentives. Alice recommends looking into the £1,000 property allowance, which homeowners can claim for any income derived from their home or land, such as letting someone park on your driveway or store items in your garden shed.
There is also a £7,500 rent-a-room scheme if you let out a room to a lodger, which can be a great way to earn an income from your home and help towards the mortgage. Note, however, this cannot be used in conjunction with the property allowance.
Income and outgoings
Taking on a “side hustle” can be a great way of raking in some extra cash. For those with spare time, using your expertise on a freelance basis, taking on a second job or selling unwanted clothes on sites such as Depop, Vinted or eBay can give you some extra money go to towards your expenses.
You could also try to reduce your outgoings where possible and explore all the ways you could save money. Alice suggests setting yourself a strict budget or taking advantage of tax allowances – such as the 25 percent council tax reduction for people who live alone – while ensuring your status is updated with your local authority.
Household bills
To help manage rising household bills in a single-person household, Pete Mugleston, MD and money expert at OnlineMoneyAdvisor, suggests looking for ways to reduce your monthly electricity, gas and water usage. He says: “This could include turning down your heating by one degree, switching to more cost-effective cooking appliances like an air fryer, and turning down the temperature when washing clothes.”
While these may seem like small changes, together they can add up to significant reductions, while making some supermarket swaps can also help keep grocery bills down. “Look to buy and cook food that can be frozen and reheated in the future, that way, you have a lot more time to eat the food before it goes bad,” Pete says.
If the taste is the same, you could also try switching to supermarket-own products rather than named brands.
Dating
While having a partner can save you money, looking for love can be expensive when you are footing the bill for dinners, drinks, gifts or weekends away. This does not always have to be the case, as new research from Bumble suggests 42 percent of people would prefer modest date locations to avoid any pressure or stress about money.
Hayley Quinn, dating expert for Match, says: “Always choose dates that are within your means, and if someone suggests a date that’s more extravagant, don’t be afraid to counter with a lower-cost date. A great, cheap date could be going for a bike ride, grabbing a hot chocolate and doing a wintery walk, or wandering around a farmers’ market.”
‘Going Dutch’ is also perfectly acceptable, according to Hayley, no matter who suggested the date. She says: “Whilst being treated to a date is always nice, it is more important to show consideration and meet someone halfway when everyone’s feeling over-stretched.”
Planning for the future
Money can be a confusing topic, particularly when it comes to things like savings and investments, but there are lots of resources available to help you get to grips with your finances. A qualified financial planner can offer advice on the best way to save and invest your money for the future, with companies such as Bestinvest offering free financial coaching whether you are a customer or not.
Websites like MoneyHelper and MoneySavingExpert also offer free, impartial advice on a wide range of consumer subjects.
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