Independent statistics state, “3 in 10 people in the United Kingdom live alone.” More than 56% were couples with or without children, and 11% were lone family figures. As of 2023, 8.4 million people were living alone in the UK. Over half of the population living alone in the country comprises old people aged 65 and above, and the proportion has been rising since then.
Living independently is more costly than living with a household. You are exclusively accountable for all the rent, utilities, groceries, and taxation. Apart from that, the urge to socialise and waive off loneliness comes with a cost. You may spend on dating sites and joining community meetings. However, it is essential to have a balanced life.
Regardless of expenses, a single person feels overwhelmed by the costs. It gets trickier for the person to manage all alone. Moreover, the cost of living crisis makes it challenging for the person.
How much do you require to live conveniently in the UK
A single person or one-household individual must earn at least £28000/year. It is the standard for a comfortable living. However, the average income depends on other aspects as well. The income types define the lifestyle. For example, you must earn £34963 as a full-time employee for a comfortable living. A part-timer’s average salary accounts for £12527.
What are living expenses in the UK with rent for a single person?
The expenditure of living in the UK for an individual with rent is £2500-£3500/month. The moderate expense for a single someone without rent is£651/month. It may include food, holidays, car and home insurance, entertainment, and recreation. Singles invest £3,195 more per year on living expenses than couples. It is because they cannot split the costs with anyone.
5 Strategies to cut the costs as an Individual living in the country
Individuals living alone face the extremes of “single tax”. It is nothing but the costs of living that one is exclusively accountable for. Costs may spiral out quickly if you don’t counter them now. Prioritizing needs over wants and avoiding the nice-to-have things may help. Here are some aspects that may help reduce your living costs as a one-person household:
1) Claim a single-person discount on Council tax
Yes, you may spot a single-person discount if you are living alone in the country. The most immediate benefit is- reduced council tax. You can deduct the costs by 25% by claiming the discount. For example- if you pay £1898 as council tax, you can save £475 with the discount.
This means you only pay £1423 in tax. Thus, it’s worth registering for the discount and claiming the deal. However, individuals with irregular income may struggle with payment. Check the last due date to settle the liability. Owning over £1000 may risk your assets, as the authority may claim.
Analyse the best ways to pay it with external sources. You may get one despite a low credit history or poor credit. Check verified bad credit loans in the UK marketplace. Approximate the prices and choose the right one. It may help settle the bill before the last date. It helps avoid any legal action from the authorities. Moreover, ensure regular payment on the loan to avoid further credit loss.
2) Save at least 20% of income/month
Leading experts highlight the importance of saving at least 20% of income monthly. The best way to do so is by putting up a savings budget. You can deposit a fixed portion from a current to your savings account monthly. It helps you ensure some savings alongside meeting liabilities.
Moreover, choosing a savings account with a high-interest cover increases your total savings amount. You can double up the contribution to a savings account by downsizing other needs.
For example- identify your requirements against the expenses. You may spot that you spend more than what you need. It could be unnecessary subscriptions, apparel shopping or outings. Determine the best ways to reduce these and boost your savings.
3) Ensure a water meter in the home
Individuals who lack a water meter pay more than one having it. The authority charges a fixed amount for households without a water meter. Generally, it is higher than what you may use. It disturbs the budget and other crucial expenses.
Alternatively, individuals with a legal water meter in the home pay only for what they consume. In this, a single person living in a 2-bedroom set may save up to £100. Renters can also discuss the meter installation with the landlord. If he allows it, it may prove a money-saving deal.
4) Reduce the car insurance liabilities
It is one of the best ways to save extra. Identify the car insurance costs and premiums. Check whether you can pay that comfortably. If not, identify the best ways to share the car with a known one. It reduces the liabilities and responsibilities of car maintenance. You can instead share the costs with your friend or a family member. Choose someone who wants to buy the car but cannot.
You can also save on insurance coverage by certifying considerable automobiles at once. Consider individuals in your friends or family group seeking one. The insurer may provide relief on premiums for insuring multiple cars.
However, if you still need a lump sum to cover the dues, don’t worry. Check verified that there are emergency cash loans from nearby providers. It may help you cover the costs without bothering loved ones further. You will solely be responsible for the payments. Hence, identify the payment potential and borrow accordingly.
5) Switch to the best electricity tariff
If you live independently, your energy consumption will be inferior to that of a couple. However, choosing the wrong electricity tariff may increase the bill. Choose or shift to an electricity tariff with no standing costs. It prevents you from paying for the unused power.
Moreover, always keep an eye on the new tariff models. It may help fetch a better and more affordable deal. You can also ask your current provider to lower the costs. Switching to the next best model is the best deal if he denies it.
Bottom line
These are some practical ways to reduce expenses as a single person. Identify your budget and monthly costs. Identify the possibilities to cut costs. It may imply cancelling useless subscriptions or switching to better energy tariffs. Moreover, identify the benefits you can claim as a single household. It may save you whopping money on lifestyle. Keep an eye on the ongoing discounts while shopping for groceries and insurance covers.
