It's already obvious that 2022 is going to be a less than perfect year for anyone living on a budget. That includes parents who need to keep an eye on spending. In times like these, it helps to have a few weapons to do battle in the war against inflation. In a post-COVID economy that was hit hard by business slowdowns and high unemployment, it's critical for moms and dads to make a detailed plan for fighting high prices. That's where strategies come in handy. It's possible to sell term life insurance policies and convert them directly to ready cash. Other tactics include reducing fuel costs by driving less, cutting grocery spending by joining a wholesale club, and canceling unneeded memberships and subscriptions. Fortunately, there are plenty of powerful ways to spend less and still live comfortably while raising a family. Here are several specific approaches.
Plan for Inflation
Get ready for higher grocery, fuel, and entertainment prices as the 2022 inflationary spiral builds. The good news is that you can plan to lessen the blow by creating an annual budget that takes inflation into account. Assume an eight percent rate, and you'll probably be close to what reality brings for the next several months. Then, calibrate all budget line items to factor in that rate. Adjust spending and investing accordingly, and you'll have a more realistic budget from which to operate.
Get Cash for Your Life Insurance Policy
Did you know that you can pull some quick cash from a term life policy via a process called life settlement? Most insurance policies are worth something, even term coverage that you might have thought had zero cash value. Parents who own term policies can sell them and net some ready cash. When you opt for a life settlement, you will not get the full death benefit amount but will get a payout that is greater than the cash value. More parents are choosing to turn in unneeded contracts into cash with life settlements. When you do the transaction, it frees you from the obligation of paying premiums and transfers ownership of the policy to a third party.
Minimize Fuel Consumption and Join a Wholesale Club
Fuel prices have already gone haywire, which is all the more reason to drive less, take public transportation whenever possible, ride a bike for neighborhood errands, plan multiple chores for just one trip in the car, and find a wholesale club that offers gasoline discounts. Besides saving on fuel, wholesale clubs can help families and individuals save big on groceries year-round. Most clubs charge a modest annual fee of about $70, but it's easy to save more than $1,000 just on groceries by shopping at one of the major-name clubs.
Rethink Gym Memberships and Cable Subscriptions
It is important to support your healthy lifestyle but be honest when you review your budget. Don't be reluctant to cut out things like gym memberships you rarely use or don't need, cable subscriptions that offer more channels than you ever watch, and online clubs and subscriptions that eat away at your monthly income. Parents have choices, and one of them is to be frugal when prices are rising.