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  • Writer's pictureHarry N. Stout

272- 22 Money Ideas for 2022: Part 2

This is the second post on money ideas for 2022 to improve your financial world.

Idea 11 – Look into Adding an Umbrella Policy

Work with your general insurance agent or company to see if an umbrella insurance policy makes sense for you. Umbrella insurance is an extra layer of insurance that provides protection beyond your existing policy coverage limits (e.g., $300,000 in vehicle bodily injuries) and coverages of other policies. Umbrella insurance can provide coverage for injuries, property damage, certain lawsuits and personal liability situations. It is a layer of protection that sits above your core policies. That is why it is called an umbrella policy.

Idea 12 – Prepare for Filing Your 2021 Income Tax Returns

If there was ever a year to get a head start on doing your taxes this is it. With the extra pandemic benefits provided to individuals this year you may have much to sort through. Also, remember that if you did receive unemployment compensation payments this year, they are fully taxable for 2021 versus the exclusion that was available in 2020.

Idea 13 – Get a Fulfilling Stage Income Checkup

Each year, just like most of us get an annual medical examination, we should get an examination of what we are saving for our later years and what income your efforts will generate. I cannot tell you how important it is to understand that you are very likely to have a very long life—living past age 85—and you will need the money to pay your expenses in these later years.

Idea 14 – Fully Fund Your Emergency Fund

You should have at least six months of cash expenses on hand to protect you against the uncertainties of the FinancialVerse, including unexpected medical bills, the loss of your job, family emergencies, and home or car repairs. You can’t rely on others for these needs; you have to prepare for them yourself. Overall, on a longer-term basis, I am an advocate of building an emergency fund over time that equals one year of expenses.

Idea 15 – Consider Refinancing Your Student Loans

Student loan debt is strangling the financial flexibility of our nation. The total amount of such debt outstanding now exceeds $1.7 trillion. One thing most of these debtors should do is to look into refinancing their debt to reduce interest expense and shorten the time it takes to pay-off the loans. The Consumer Finance Protection Agency has run posts on this subject. Go to for more information on this topic.

Idea 16 – Set Up an IRA

Many financial experts estimate that you may need up to 60 to 85 percent of your pre-retirement income to support your financial needs in later life. An employer-sponsored savings plan, such as a 401(k), might not be enough to accumulate the savings you need. Fortunately, you can contribute to both a 401(k) and an IRA, subject to the mandated income restrictions. An IRA can help you supplement your current savings in your employer-sponsored retirement plan.

Idea 17 – Ladder Your Savings Accounts

Many times savers hurt themselves by opening a single certificate of deposit (CD) at a local bank. In fact, with rates expected to rise there are advantages to parking your money in multiple CDs with different maturity dates by creating what is called a CD Ladder. Building a CD ladder isn’t as complicated as it sounds. CD laddering involves a saver buying multiple CDs at once that mature at different intervals. For example, while you’re opening a one-year CD, you could open a three-year and five-year CD at the same time. By having different maturity dates you are protecting yourself against rates changing.

Idea 18 – Get a General Insurance Checkup

Make a detailed listing or inventory of all your general insurance policies. This would include car insurance, homeowner’s insurance, renter’s insurance, personal liability insurance, accident insurance and any personal liability umbrella coverage you may have in place. Then arrange a time to meet with your general insurance agent to review your coverages and make sure they are still needed and cost effective.

Idea 19 – Change Your Money Mindset

One of the best ways to reduce financial stress and anxiety is to change your money mindset. What this means is to be more aware of how you approach money, understanding what you’re spending and saving habits are, and how you are explicitly making money decisions each day. Having this awareness and making it part of how you conduct your life will lead to better money decisions.

Idea 20 – Look for a New Job or Side Hustle

As you look at your cash plan, there are typically two ways to improve your net cash flow – reduce expense outlays or increase cash inflow by taking on a second job. People take on second jobs to save for a house, pay-off unexpected bills, to have kids, fund their retirement or for other long-term objectives. And while getting a raise, a promotion, or a new, higher-paying job is often how people go about increasing their incomes, those options aren’t always on the table.

Idea 21 – Review Your Living Expenses

What does it cost you to live? How much do people spend to live each year? Is there a baseline amount you need to live? These are questions people ask as they begin to really look at what they spend each year and how it compares to other people. Each year you should look at what you are spending to live and make decisions on the appropriateness of each expenditure.

Luckily, there are reference sources you can consult about what is a reasonable amount to spend on various categories. The most sourced reference is the federal government’s Bureau of Labor Statistics (BLS). Each year, BLS publishes a survey of data on consumer expenditures, income, and other demographic information. This comprehensive survey defines a consumer unit as a household with either a single person or two or more people living together who make joint financial decisions.

What you spend to support your lifestyle is a key decision you make. Must you have the most stylish clothing? Should you purchase a new car every four years? Must you eat out several times per week? Do you need to attend all the latest movies, shows, and sporting events? Do you need to have all the available streaming services, or can you get by with just one?

If these are your choices, the end result is that your lifestyle will be much more expensive than someone who displays much more frugal habits such as keeping their car for twelve years, not owning a car and using Lyft or Uber or carefully maintaining an attractive but less stylish wardrobe. The lifestyle decisions are yours, and they do differ significantly from person to person.

The costs of your lifestyle determine your basic cash outflow needs in the FinancialVerse. These needs differ for each individual and are based on their daily decisions as to what is important.

If you need ideas on where to look for savings, please purchase my book The FinancialVerse Guide to Savings – 600 Practical Cash Savings Ideas. I have researched practical cash savings ideas for many segments of your financial life.

Idea 22 – Spend 17 Minutes Per Day on Money Matters

Financial literacy and knowledge is of utmost importance. According to a recent survey by Northwestern Mutual Life Insurance Company, the average person spends 2 minutes and 24 seconds each day on financial matters. This is just not enough money time. In order to improve your money knowledge, I believe you need to spend 17 minutes a day or two hours per week learning and studying the world of personal finance. Knowledge is power. You must make boosting your financial literacy a priority. All the information you need is available for little or no cost. It can be accessed from several key sources that include websites, podcasts, and printed publications. Go to for more information. Our Best to You in 2022

We wish you the best as you plan your financial life for 2022. Our 22 ideas may help you gain money success in the new year. Consider which of them can help you reach your goals. Remember each week the FinancialVerse publishes two Moneysavers blog posts and two FinancialVerse Podcast episodes with ideas you can use to improve your financial health and well-being. If you are not a subscriber, just go the website and enroll. You can also follow us on Facebook, Twitter and LinkedIn.

If you like our posts, you’ll love our books. Our sole source of income for the FinancialVerse comes from sales of our books. Thanks for reading this post.


Ready to improve the quality of your financial life? Harry is the host of a new podcast from the FinancialVerse where he shares practical ways to relieve money stress and anxiety. Each 7 to 10-minute episode is designed to fit into your busy lifestyle.

Subscribe today or just ask Alexa or Siri to play the FinancialVerse


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