Inflation Iron-Man (Finance Game #5)
August 8, 2008 – 6:00 am
The rules of this game are that you need to offset inflation to your current budget. In other words you need to spend exactly as much next year as you did this year. You can do this by purchasing less stuff or making trade-offs between one item and another. This is part of the “My Boss Is A Deadbeat” game I discussed earlier, which involves saving your bonuses and raises every year for several years. The key here is to make this task a game by really trying to get the most value out of every dollar you spend.
How do you offset inflation? Find alternatives at the grocery store. Buy store brands. Cook at home. Choose to sign-up for Netflix rather than paying $40 a month for one movie in the theater (for your entire family). The options are limited only by your creativity.
Another option for achieving this goal is to downgrade a little bit. You could offset a ton of inflation by going from a new car to a used car, or going from a new BMW to a new Honda. Getting rid of debt will help you offset inflation, because you’re reducing the amount of money you spend (in interest) as you pay off your debt.
Image Credit: nantaskart
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