Paying for Lifestyle Changes When Inflation Strikes

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Are you planning to revamp your wardrobe, hire a personal trainer to finally get fit, remodel your home to make it more comfortable and easier to sell, or tackle another type of lifestyle change as the summer months approach? If so, you’re like millions of other working adults who intend to improve their lives during one of the toughest economic periods of the past decade. As inflation continues to send the price of everything higher, it’s important for people to keep living their lives, making improvements when needed, and not letting the inflationary goblin freeze them in their tracks. Maintaining a positive attitude is helpful, as are concrete, real-world tactics for spending wisely and strategically.

Step one is to redo the monthly budget to account for the higher cost of everything. Next, consider bringing in a dose of much-needed cash by selling a term life insurance policy. On the spending side of the equation, it’s relatively easy to save by eating at home instead of in restaurants, deferring vacations, and pausing investment activity for at least six months. The following techniques can help anyone pay for necessary lifestyle changes when cash is weakened by the rising cost of living.

Reconstruct the Monthly Budget

You’ll have to retool your budget to take inflation into account. It will have the greatest impact on variable costs like food, fuel, and housing, especially if you are a renter. Additionally, update all income sources, new tax rates, and whatever other factors have changed since your last budget redo. Consider using budgeting apps to help you be as exact as possible.

Sell Your Term Life Insurance Policy

Do you have a term life insurance policy you’d like to turn into quick cash? Did you know that you can do so using a life settlement, in which a third party buys the policy for cash, which goes directly to you, and then takes over the full ownership of the policy? Many people incorrectly believe that term policies have zero cash value. That is not so. Most of them do, and you can receive a payout that is less than the death benefit stated in the fine print but greater than the cash value. It’s nice to never pay premiums again and get money upfront. Life settlements are an excellent way to cover the expenses associated with lifestyle upgrades that you need and want during inflationary times.

Eat at Home

Dining out too frequently, especially on fast food, is one of the main sources of budgetary leaks for working adults. Make detailed shopping lists and plan meals one week ahead of time. If you commute to your job, pack a bag lunch each day of the week. This can also help you stay motivated to eat healthy on top of benefitting your wallet. After one month of paring down the outside meals, you’ll likely notice that you’ve saved a considerable amount.

Defer Major Purchases

When prices are rising, and money is more precious, you still have to live life. However, it is wise to delay as many major expenses as possible. They include things like exotic vacations and buying a new home or car. Instead, conserve money by reworking your budget and doing less costly upgrades to houses and cars. Inflation doesn’t mean you have to put everything on hold, but it makes sense to delay the really big purchases.