Has 2022 got you down? Are you suffering from the 2022 blues?
We finally get out of quarantine to see gas prices go up to record highs, only to drive food and other market items up. So now can you not only afford to fill your tank up you barely have enough money to put food on the table. You may have resorted to using credit cards to pay for things only to realize later that was a bad idea and now you have a credit card bill to pay as well as trying to figure out where you will get the funds for food and gas this month. If you are considering which of your pets to eat first then maybe it is time for a change.
Starting a budget
Digging ourselves out is always much more difficult than getting in debt to begin with. The first helpful thing is sitting down and putting together a budget. Getting all your expenses in one place so you can see them is very important. Once you sit down and can view everything it’s time to start cutting the fat, and no we aren’t talking about a workout program.
Distinguishing between wants and needs
Many of us have our needs such as a roof over our heads, food in our bellies, running water, and electricity. Then we have our wants, which is sometimes hard to distinguish. The first want is a cell phone, while it is necessary to have a phone it isn’t necessary to have the most expensive plan along with the newest latest phone. Shopping around for a new phone service provider can sometimes save you some money. We all know that this is probably not going to solve all your problems, but it is a start.
Saving money doesn’t have to feel miserable
Next is cable, or satellite TV. It is important to find some form of entertainment to help boost your morale and give you something to look forward to, but some cable and satellite packages are far from a good deal. It sometimes appears that if you have been a loyal customer getting the shaft is pretty common. Why would they want to give you a promotional offer when they already have you as a customer. While some of us are going to be operating on different budgets there are several options for entertainment out there. Switching from one service provider to another can make a pretty big difference. Sometimes they offer a 1 to 2-year promotional price which may be just what you need to help dig yourself out of your current situation. If you are thinking right now that it’s gonna take more than an extra 40 dollars a month to see any sort of difference in 2 years. There are other yet options out there.
Finding cheaper entertainment
YouTube is a great source of entertainment that is free. There are ups and downs. You’re not going to be watching everything on YouTube that you were watching on satellite. If you sit down and look at the channels you watch on Dish there is a good chance you can find the same programming on one of the many platforms like Hulu, Netflix, and peacock to name a few. There are some free options out there that limit your viewing. If you feel like you need more you can always upgrade for a lot less than some of the cost of satellite TV. Most of these platforms also have a free trial, giving you the ability to see if this is something that you are interested in.
Digging a little deeper
If these changes aren’t enough then it’s time to dig a little deeper. There are other things that you have to have but that doesn’t mean there is a set price. Car insurance while it’s a must is something you can shop around and find better deals on. If you have a good driving record then making a few calls can save you money. I would recommend checking into this even if your driving record isn’t that great.
Still need more to make a change
Does your current car get 20mpg or less? Do you have a high car payment? If you answered yes to one or both of these questions, it’s time to re-evaluate. If your car is getting less than 20 mpg, but it is paid for you may consider keeping it. If it’s not paid for you should then ask yourself why am I driving this vs. something that gets better fuel economy? Do you have a large vehicle but don’t need the room? Do you question if your current vehicle is a necessity? If you answered yes to some or most of these then it may be time to reconsider your current situation. It may be time to think about trading in your vehicle and getting something more reasonable. Will you be upside down? Probably, but if they can give you a lower payment, it gets better fuel mileage and the insurance is cheaper because it is smaller then it’s a win-win and could help change your current situation. If you change your lifestyle you can change your entire outcome. I don’t know anyone who would prefer to drive a compact car over a luxury car. I do however know people who have made these changes and now feel happier not living paycheck to paycheck.
More food for thought
A final option to mention is a possible home refinance. If you own your home and have high payments, it may be time to reconsider refinancing. Lower interest rates can make a huge difference in your payment amount. While increasing the number of years to pay by refinancing will feel counterproductive, the extra money may be well worth it if you are struggling. Once you get your debt paid down and feel comfortable again you can always increase your principal payments and pay your house off earlier.