Note the following content is intended to be educational but it does contain promotional material for Kaldi.

Budgeting in the cost of living crisis

The cost of living crisis isn’t an abstract headline for most people. It’s the moment you hover over the checkout button and think twice. It’s the bill that lands higher than last month’s. It’s the quiet mental arithmetic before payday. When everything costs more, budgeting can start to feel like a full-time job in itself.

The first thing to accept is that it’s not about perfection, and budgets only work when they fit real life rather than an ideal version of it. If you occasionally overspend or forget to log receipts, that’s fine. The point is to stay aware, not obsessed.

You don’t need a colour-coded spreadsheet or a financial overhaul so much as a clearer sense of what’s really happening with your money. Once you see that picture honestly, the rest starts to fall into place. 

See where your money really goes

Start by looking at where your money actually goes. It sounds simple, but many of us underestimate the small leaks, be it the subscriptions we’ve stopped using or takeaway deliveries that add up faster than we think. A week or two of paying attention to the details offers a clearer picture than many budgeting apps can do on their own.

Once you’ve got that picture, it’s easier to decide what matters. Maybe it’s keeping a weekly dinner out with friends because it keeps you sane, but switching supermarket brands elsewhere. It might be paying down a card before worrying about long-term savings. Good budgeting isn’t about cutting so much as it’s about trade-offs you can live with.

Make it simple

A little structure goes a long way, so why not try separating your essentials, like rent, bills, groceries, from everything else by using two accounts. You’ll see what’s left after the non-negotiables are covered and can spend from there without the anxiety of eating into next month’s money.

Setting up a standing order to move even £10 a week into a savings or investment account is another route to go down and can help with momentum. You’ll barely notice it week to week, but over time it starts to build quietly in the background.

That’s why Kaldi resonates with people who might otherwise skip saving altogether. The app turns cashback from everyday spending into investments, so you’re building something quietly in the background. 

Take Gareth, who said he’d never really invested before, but Kaldi made it feel less like a leap and more like “getting my money to do something.” It’s that sense of movement that keeps you going when money feels tight.

Start with what’s easiest to change

Cutting back can feel impossible when things are already stretched, so look first at the things that can shift without much effort. Energy and broadband providers often have loyalty penalties built in, and a few phone calls or online switches can save more than cutting treats ever would. Plus, if you’re behind on bills, reaching out early usually opens up better options than ignoring them.

If you shop regularly online, check for cashback offers or loyalty rewards you might be missing. Even small percentages can offset rising costs over time, especially if they’re invested automatically, like with Kaldi. They can start to work quietly in your favour.

Keep it emotional, not just practical

Budgeting has as much to do with emotion as  numbers, and it helps to remember that none of this is a personal failure. The reasons everything costs more are out of your hands. The small steps, like cooking more often or setting up a savings transfer, still count.

When progress feels slow, zoom out and see what would make life a little easier in six months. It might be clearing a debt. Perhaps building a small emergency fund is the way forward. Pick one goal and shape your next few months around it.

Give yourself room to breathe

You might spend more than you meant to, or get stung by  a cost you didn’t see coming. It’s impossible to avoid every bump, but you can keep steering in the right direction – even when it seems like you’re against the tide. 

Budgeting in a cost of living crisis means staying aware and making choices that leave you with a bit more breathing space. Kaldi has a role to play, helping you earn money through cashback and reinvest it automatically into your savings. 

But you also need to stand tall in those small, human moments. Whether it’s one bill or one habit, take it one week at a time.

Just remember, when you invest your capital is at risk. The value of investments can go up or down and you may get back less than you put in. Investing may not be suitable for everyone. Consider your own financial situation and investment goals, and seek independent financial advice if needed.