Batten down the hatches
It seems never ending and is affecting everybody, companies and individuals alike, hitting us from all angles from the cost of borrowing money to the cost of boiling the kettle.
The media is covering the cost-of-living crisis heavily. We’re constantly being updated on changes to the Bank of England Base Rate, GDP, inflation, unemployment, cost of fuel, the energy support package… as well as likely recession, and allusions to ‘eye watering decisions’ announced in the Autumn Statement.
But there are some positives in what we can do as individuals and business leaders. Good financial housekeeping is always important and at times like this are a powerful reminder to take stock and review, asking questions about whether money needs to be spent in certain areas and where savings can be made. Being less wasteful is always a favourite, as well as being creative about achieving more for less.
It’s also a stark reminder of the importance of good risk management and scenario planning. For example, where an interest rate hedge is finally paying dividends, similar to the assurance that a HP finance contract gives our customers. The rate is fixed for the duration of the loan and therefore the monthly repayment does not change, helping our customers plan better and manage their financial outgoings.
There is also a strong ESG imperative where saving money can also help the planet. By making the office and home more energy efficient or reducing the commute due to flexible working, they help the environment as well the purse. Not to mention, tax efficient schemes like bike to work with have the added benefit of promoting health and wellbeing.