If you’ve done grocery shopping recently or looked at home and car prices, you’re likely feeling the impact of rising prices. Inflation isn’t going away anytime soon, so it’s time to get proactive about reducing its effect on your budget.
We’ll share some ideas that probably aren’t on your radar, such as pursuing some new car insurance discounts and considering pay-per-mile insurance. We’ll also share tips on how to lower your budget and increase your income.
Idea #1 – Pursue Car Insurance Discounts
Car insurance discounts can help you save 35% or more on car insurance premiums. So, you want to ensure you’re maximizing what’s available. Ask your car insurance provider for a list of available discounts and look through it to see if there are any you’re not getting but should.
If you’re unsure, you can ask your agent or representative for clarification. Some of the most common discounts include the following:
- Good driver discount
- Good student discount
- Military discount
- Multi-policy discount
- Paperless billing discount
- Usage-based discount
This list is not exhaustive. Some insurers offer more than 25 discounts, so find out what yours offers.
Idea #2 – Compare Car Insurance Options
The car insurance provider that was the best fit six months ago might not be the best option for you anymore. So, you should compare car insurance quotes about twice a year to ensure you’re not overpaying for car insurance.
Some insurers are better for young drivers, while others offer better rates for older drivers. If you have a traffic ticket or accident on your record, some insurers will raise your premiums significantly, while others will only increase them slightly.
Even though premiums are a critical factor in choosing a coverage provider, it’s not the only consideration. Before switching to the cheapest provider, ensure they’re a licensed insurance provider, have a solid financial foundation, and treat their customers with respect.
In addition to comparing providers, you should compare types of policies. Pay-per-mile insurance policies are often the best fit for individuals who drive low annual miles. Sometimes, they’re even a good fit for people who drive an average number of miles.
Idea #3 – Trim Your Budget to Make Your Income Go Further
When the economy has taken a downturn, it’s even harder to catch up when you fall behind. So, you must be extra vigilant to limit your spending to what you can afford. And sometimes, that means you have to cut things out of your budget.
Just remember that the cuts don’t have to be permanent. They’re a means to staying afloat, and better times are coming. So, prioritize your debt, utilities, housing, and insurance bills, but trim things like streaming subscriptions, eating out, and fun money from your budget.
Idea #4 – Shop Sales to Save Money
Food prices are soaring, especially if you want anything from the meat department. If you have a freezer for perishables or a pantry for canned goods, you can watch sales and stock up when the items you use go on sale.
You can also save by using digital coupons. It’s a lot easier to download a grocery store app and clip digital coupons than it was to cut out coupons from newspaper ads.
When shopping for non-food items, consider shopping used. Before buying from an online retailer, check local garage sale pages. Someone might be getting rid of precisely what you’re looking for.
Idea #5 – Choose Low-Cost Activities
You can spend a lot on free time activities and have a lot of fun. But you can have an equally enjoyable time doing low-cost or free activities. And remember, just because you take a break from your favorite expensive adventures doesn’t mean you won’t return to them.
Some low-cost activities you should consider are hiking, foraging, rock hounding, free community events, free community education, cooking, and reading. Check with your local library for resources. In recent years, libraries have become a hub of community activities, from offering free yoga classes to hosting concerts.
You might be surprised by how much you enjoy experimenting with cooking using a pressure cooker or participating in other new low-cost or free adventures, and you’ll want to continue them even when your financial situation isn’t so tight.
Idea #6 – Save Money on Fuel
There are a few ways to save on fuel. Each one saves just a little, but when you combine the strategies, you’ll see savings that you notice.
First, use a gas app that not only shows you where the cheapest gas station is, but also offers cash back on every purchase you make at participating gas stations.
Second, keep your tires properly inflated. Tires with too little pressure can waste 3% of your fuel economy or more.
Third, accelerate slower, coast more often, and avoid driving faster than your car’s sweet spot, which is usually around 60 mph.
Idea #7 – Swap Out Something High-Priced on Your Monthly Budget
Sometimes trimming things from your budget is hard to do, so another strategy is to swap out expensive items and activities for lower-priced ones. Then, you won’t feel like you’re going without.
For example, you could swap going out to eat with grilling a steak. It’ll still be a treat, but it won’t cost as much as steak at a restaurant.
Idea #8 – Negotiate a Raise at Work
If you can increase your income, you’ll have more money to compensate for your increased spending due to inflation. You might not get a raise, but it doesn’t hurt to ask.
Just as you should do anytime you request a raise, you should enter the conversation prepared knowing your value to your employer and what fair compensation should be.
Idea #9 – Pick Up a Side Job to Earn Extra Money
If you can’t get a raise, you can consider getting a side job. You can work a traditional job for a few hours in the evenings or weekends, or you could try a gig job like writing, walking dogs, or cleaning houses.
Idea #10 – Swap With Friends to Save
Join your local chapter of the Buy Nothing Project. These communities are designed to build friendships and help people out. So, it’s like a garage sale, but everything is free.
You can also do something similar with your friends and host a clothing or decor swap. After exchanging items, everyone will feel like they have something fresh but didn’t have to pay for it.
By following these tips, you can do better than surviving inflation; you can thrive through it. You might find things you love to do that you never did before, and you might even get to experience the joy of community support that goes both ways.
Melanie Musson writes and researches for the auto insurance comparison site, BuyAutoInsurance.com. She’s passionate about helping others understand how to get a protective insurance policy without overpaying for it.
