How We are Overcoming the Cost of Living Crisis

Can We Really Beat the Cost of Living Crisis?

Amidst the ongoing cost of living pressures, individuals from all walks of life, whether married, divorced, single, a parent, a retiree or a recent graduate, continue to grapple with elevated expenses and financial uncertainty.

Persistent Inflation

UK prices have risen 28.2% in just five years—nearly four times the rate of the previous five-year period

While inflation has fallen from its 2022 peak, it remains stubbornly above the Bank of England’s 2% target. Current inflation stands at 3.8% as of August 2025, and the IMF forecasts UK inflation to average 3.4% in 2025, before slowing to 2.5% in 2026. [Office for National Statistics Yahoo!]

This means that over the past five years from August 2020 to August 2025, UK consumer prices have risen by 28.2%—a stark contrast to the 8.3% increase seen in the previous five-year period. [House of Commons Library]

Real Wages Under Pressure

The Office for National Statistics (ONS) reports that real wage growth (adjusted for inflation) was just 1.2% in the period from June to August 2025. [Office for National Statistics Office for National Statistics] While wages are growing nominally, they’re barely keeping pace with the rising cost of living.

The average UK salary is £37,000—but after inflation, households still feel financially stretched

As of early 2025, average weekly earnings for full-time employees stand at £711, translating to an annual salary of approximately £37,000. [The Workers Union] However, after accounting for inflation, many households still feel financially stretched.

Many people remain financially dependent on their wages to survive the ongoing cost of living pressures. In addition, workers now feel trapped in their current jobs, leaving them vulnerable to exploitation and job insecurity.

Interest Rates Remain Elevated

Are you one of the 50% of UK households worried about their ability to meet rising rent or mortgage payments? 

Are you one of the millions of UK households still worried about your ability to meet rising rent or mortgage payments?

While the Bank of England has begun cutting interest rates—recently reducing them to 4%—mortgage payments remain significantly higher than they were just a few years ago. [CNBC] For homeowners on variable rate mortgages or those remortgaging, monthly payments are still causing chronic stress and financial anxiety.

Energy Bills Stabilised But Still High

Energy bills remain 44% higher than 2021 levels—still a significant burden for households

The average UK energy bill is currently £1,755 per year for a typical household (October to December 2025), representing a 2% increase from the previous quarter. [Ofgem]

While this is well below the £2,380 peak level from October 2022 to June 2023, it’s still 44% higher than winter 2021/22 levels. [House of Commons Library] Looking ahead to 2026, forecasts suggest the price cap will remain relatively stable, with only modest fluctuations expected throughout the year. [Reliant energy solutions]

For many households, energy costs remain a significant burden, particularly during the winter months

Soaring Food Prices

Food inflation has become a major concern, rising to 5.1% in August 2025 and projected to reach 5.7% by December 2025 before gradually easing to 3.1% by the end of 2026. [Food & Drink Federation Döhler]

Food prices have skyrocketed 37.2% since 2020—compared to just 4.6% in the previous five years

Between August 2020 and August 2025, UK food prices have risen by a staggering 37.2%, compared with just a 4.6% increase in the previous five-year period. [House of Commons Library]

Specific items have seen dramatic increases: beef and veal prices are up 24.9%, butter by 18.9%, chocolate by 15.4%, and whole milk by 12.6%. [Döhler]

Foodbanks continue to be overwhelmed by the influx of people desperate to feed their families, and charities struggle as donations decline.

Squeezed Household Budgets

Maybe you feel as though you have already run out of options for “tweaking” your household budget and are worried that you won’t be able to make ends meet without going into debt or maxing out your credit cards and overdraft.

With persistent inflation, the cost of basic goods and services continues to climb, further straining already stretched household budgets.

Shortchanged On Savings Rates

If you have savings, you might be frustrated to find that despite the Bank of England’s higher interest rates, many banks and building societies are still offering relatively poor returns on savings accounts, meaning your money loses purchasing power to inflation.

The Great Unretirement Trend

Many people who decided to retire early during the COVID lockdowns to pursue personal fulfilment and live a less stressful lifestyle have had their dreams shattered by the ongoing cost of living pressures. Many of these early retirees have had to return to work, fuelling what has become known as “The Great Unretirement Trend.”

Economic Uncertainty Continues

While a deep recession has been avoided, economic growth remains sluggish and uncertainty persists. It’s clear that government support hasn’t been enough for many families struggling with elevated costs.

What we face is an ongoing household financial squeeze. Many people have had to cut back on discretionary spending, affecting the hospitality, leisure, and retail industries. Job security remains a concern for many workers.

So, What’s the Answer to Thriving in 2026 and Beyond?

It seems that the ongoing economic challenges and cost of living pressures have forced many people to rethink their finances and look for ways to supplement their income, creating a significant opportunity.

A Perfect Storm of Opportunity

Right now, one of the most viable ways to improve your financial situation is to become an entrepreneur and launch your own online home-based business.

However, Not All Side Hustles are Created Equal.

While these side hustles can provide extra income, you are still exchanging time for money, limiting your earning potential. After all, there are only 24 hours in a day. What is lacking is a scalable income source that grows over time without being directly tied to your hourly effort.

I don’t know about you, but I used to leave the house at 6:30 a.m. when I was running my graphic design business. I was exhausted after commuting and returning home after 7 p.m.

I can certainly imagine how someone might feel after coming home from one job and then going back to work because the pay from the first job is no longer adequate.

The thing is, I discovered it doesn’t have to be this way. There are other options and choices we can make.

What if I showed you a leveraging strategy that could help you increase your bottom line? Something that outperforms inflation and has no earning limit?

Something that outperforms inflation, has no earning limit, and can be built around your existing schedule—even if you only have a few hours a week to spare?

I’m talking about building an online business through affiliate marketing and content creation—a genuine opportunity to create multiple income streams that can grow even while you sleep.

Why Affiliate Marketing?

Unlike traditional side hustles where you’re still trading hours for pounds, affiliate marketing allows you to:

The Wealthy Affiliate Community

When I started exploring online business options, I discovered Wealthy Affiliate—a comprehensive platform that teaches you how to build legitimate affiliate marketing businesses from scratch.

Here’s what stood out to me:

FREE to Start You can join as a free member (Starter level) and access foundational training, website building tools, and the community without spending a penny upfront. This removes the financial barrier that stops many people from even trying.

Comprehensive Training Step-by-step courses covering everything from choosing your niche and building websites to SEO, content creation, and scaling your income. No prior experience needed—the training assumes you’re starting from zero.

All-in-One Platform Website hosting, keyword research tools, content creation resources, and AI assistance all in one place. You’re not piecing together multiple subscriptions or trying to figure out what tools you need.

Supportive Community Access to a community of over 2 million members at various stages of their journey. Real people building real businesses, willing to answer questions and share what’s working for them.

Multiple Income Opportunities Once you learn the skills, you can promote products and services you genuinely believe in across virtually any niche—health, finance, hobbies, technology, lifestyle—the possibilities are endless.

Learn While You Earn The beauty of this approach is that you’re building a genuine skill set. Digital marketing, SEO, content creation, and website management are valuable abilities that open doors beyond just affiliate income.

In a Nutshell…

This isn’t a get-rich-quick scheme. Building an affiliate marketing business takes consistent effort, patience, and a willingness to learn. But unlike a second job where you’re physically present and trading hours for wages, you’re building digital assets that can generate income 24/7.

The training walks you through:

1. Choosing a niche you’re passionate about (or at least interested in)
2. Building a professional website (no technical skills required)
3. Creating valuable content that attracts your target audience
4. Implementing SEO strategies to get free traffic from search engines
5. Monetizing through affiliate partnerships and other revenue streams
6. Scaling your business as you gain experience

We also have regular Zoom team training, a private Facebook community as well and a hands-on CEO, all of whom work together to ensure your success.

Why This Makes Sense Right Now

During economic uncertainty, people are searching online for solutions more than ever. They’re looking for ways to save money, make money, solve problems, and improve their lives. If you can provide genuine value and guidance, you can build a sustainable online income.

The best part? You maintain complete control. This is your business, built around topics you choose, on your schedule, with income potential that isn’t capped by an hourly rate or salary ceiling.

Is This Right for Everyone?

Honestly, no. This approach works best for people who are:

If you’re looking for instant money or aren’t prepared to put in consistent effort, this probably isn’t the right path.

Ready to Explore?

If the idea of building a legitimate online business resonates with you—one that could help you beat inflation, create financial breathing room, and potentially replace your current income over time—I encourage you to check out Wealthy Affiliate.

You can start as a free member and explore the platform, training, and community without any financial commitment. See if it’s a good fit for you before deciding whether to invest further.

Click here to learn more about Wealthy Affiliate and start your free membership

There has never been a better time to acquire digital marketing skills and build online income streams. The cost of living crisis has forced us to rethink our financial strategies—why not choose an approach that offers genuine long-term potential?

Let’s beat inflation together by building businesses that give us more control, flexibility, and earning potential.

Here’s to thriving, not just surviving, in 2025 and beyond!

Ollie

Written by Ollie Relfe
Entrepreneur, mentor, and blogger who helps people achieve their work-life balance goals through direct sales.

Written by Ollie Relfe
Entrepreneur, mentor, and blogger who helps people achieve their work-life balance goals through direct sales.