As another busy school year heads towards its conclusion, many of us are having to cut back on our spending, as the rate of inflation shows no sign of slowing down. However, what exactly does this mean, and what impact might it have on your finances?
According to the Office for National Statistics, inflation is described as “the change in prices for goods and services over time”.
So, in more detail – if a pint of milk costs £1 one year, and then £1.10 the following year, then that’s an annual inflation rate of 10% for that particular product.
This might sound like quite a dramatic increase!
Prices are rising though at their fastest rate for 40 years. Measured by the Consumer Price Index (CPI), UK inflation jumped to 9% in the 12 months to April, up from 7% in March.
Inflation and the immediate impact
With the cost of living creeping upwards in multiple areas, we are seeing that even more pressure is being put on our daily lives outside of the classroom.
As you may have seen or heard on the news, currently, it’s our energy bills that have been hit most significantly by inflation, partly because of the Ukraine war, and the subsequent hike in oil and gas prices. Millions of people around the country have witnessed an unprecedented £700-a-year increase in energy costs.
Fuel prices are on the rise too, with the average price of petrol in June 2022 recorded at 182.3p per litre, compared to 129.5p 12 months before.
Then there’s things we might rely on even more frequently, such as food, with The Bank of England stating that the rise in food prices across the globe should be regarded as a “major worry”.
It doesn’t have to be all doom and gloom though, and we should, in such uncertain financial times, start to think even more carefully about our financial future, and what we can be doing now in order to make things that little bit easier.
Inflation and your savings
Before we embark on our savings journey, it’s often the case that many of us don’t know what we are capable of achieving with the money we have saved away.
If you have short-term goals in mind like a holiday, buying a new car, or paying off an unexpected high bill, savings accounts are ideal.
However, if you are in the fortunate position where you have further savings that you can tie up for five or more years, and would be happy to take some risk with your money in order to give it the chance to grow and potentially beat the rising cost of living – then the investment route could well be the one that works well for you.
Investing for your financial future
By investing your money in the right way, it could give you the opportunity to:
- Achieve stronger long-term financial returns
- Help grow your wealth for not only you but your loved ones
- Help you feel more confident about your financial future
- Invest in a way that suits your own personal needs
If you’re not sure how to get started, it’s worth speaking to a financial advisor about investing in a way that’s right for you.
A benefit of being an NAHT member is we can offer you an advice service to help you plan for boosting your financial well-being
NAHT are proud to partner with Skipton Building Society – who have been helping NAHT members like you since 2006. Skipton offers personalised advice on investing for the long-term, retiring with confidence and building a stronger legacy.
- One of their expert financial advisors could help you determine whether you’re on the right path for your goals and – if not – provide you with a tailored plan to help make up any shortfalls.
- They’ll find out about your current circumstances and what it is you’d like to achieve with your money.
- So if you would like to boost your financial well-being and feel more prepared for the future, it’s worth booking an initial consultation.
No upfront fees to pay – and no pressure to act
For extra peace of mind, you’ll have the time you need to think over Skipton’s recommendations, with no obligation to act. There’s no upfront fee to hear their advice either – you’ll only pay a charge if you decide to go ahead with Skipton’s recommendations.
Get in touch today to book your free initial consultation. This friendly chat is to find out if financial advice might be right for you.
Call 0800 1421 4596
Skipton’s recommendations are likely to include stock market-linked investments. These aren’t like bank and building society savings accounts as your capital is at risk and you might get back less than you originally invested. You will need to have a lump sum of £20,000 to invest or be happy to invest £500 a month.
NAHT Personal Financial Services is a trading name of Skipton Building Society, which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, under registration number 153706, for accepting deposits, advising on and arranging mortgages and providing Restricted Financial advice. Principal Office, The Bailey Skipton. N. Yorks BD23 1DN
Written by: Skipton Building Society
Published on: 22 June 2022