I am the kind of person who often over estimates costs and underestimates income and revenues. I tend to take a very conservative approach to life, I’m always worried about the worse case scenario maybe a bit too much. Catastrophizing.
Inflation is a bit of an annoyance now but my real concern is how much it is stealing from my future. Every dollar I spend now on more more expensive gas and food is a dollar that I don’t have for my future to grow and eventually buy the big things I want – land, equipment, animals. And the thing is I’m particularly hard hit by inflation because I drive a big jacked up truck and food because I have very basic tastes.
I see inflation every time go to the grocery store, gas up or wash my truck. Everything just seems like it’s getting more expensive. Even recycling at the transfer station is more these days. I make a lot more money than just a few years ago, but I don’t make that extra money to just blow it on today’s inflated prices. I want to save it for a better tomorrow.
Truth be told, my bimonthly savings and investments have been good over the past decade. Things have grown well, much faster than the rate of inflation. Some very well. But it’s getting harder to beat inflation and get good returns with prices going up so quickly. Years ago I bought some energy stocks but stopped adding to it after many years of lackluster growth and endless yearly taxable dividend payments. I probably also keep too much in ordinary “high–er” interest savings and CDs but I want to have something to fall back on should I lose my job, get seriously injured or need to junk my truck.
Lately I’ve cut out all but essential trips like visiting my elderly parents once a week and a one a week drive to the grocery store. In March I drove all of 116 miles, walking 178 miles and riding city buses 278 miles. I’ve had the heat off for several weeks, I avoid having the lights on at night and unplug everything when not in use.
I’ve done the peanut butter and jelly sandwiches and even tried lentils. I’m not a big fan of lentils – they’re such a yuppie food and kind of stinky too boot. I mean their not bad, and pretty cheap but by the time you add spices they’re not a big savings. I’d rather just do ordinary pasta. I rarely eat meat and while I’m a big fan of dairy, it just gets harder and harder to cut food expenses especially when even bulk packages at Walmart are increasing in prices.
Ultimately, I do have faith that my variety of investments will grow faster than inflation. Even as I grumble at the grocery store, I’m living within my means even if at times the budget is tight. Lately it hasn’t been quite as crunched although when I start traveling more come summer, costs will escalate. I’m a lot better off than many and if I stay the course, live frugally, a better tomorrow will come even if inflation poses challenges today.
The Federal Reserve raised interest rates for the ninth time in a row on Wednesday, opting to continue its campaign against high inflation despite stress in the banking industry following the collapse of two regional banks.
Fed policymakers voted unanimously to raise their benchmark interest rate by a quarter percentage point to just under 5%, which will make it more expensive for people seeking car loans or carrying a balance on their credit cards.
Members of the Fed's rate-setting committee said additional rate hikes may be necessary to restore price stability. On average, policymakers anticipate rates climbing by another quarter-percentage point by the end of this year, according to new projections that were also released on Wednesday.
That ad from Rent a Center for $19.95 a week tires 🛻
Last autumn I was pretty annoyed about the rubber shortage and how much more I had to spend on tires for my big jacked up truck then I had originally budgeted for with my truck getting old and rusty. To say nothing about burning up the wheel bearing in West Virginia and the strut links that needed replacing. It was big bucks but so is everything these days – especially for a truck that is going to be smashed, shredded into scrap and landfill material in a few years. Whether it’s rust, the engine or transmission failing, it’s going to garbage before long. I hate spending money on garbage but I like my big jacked up truck and new trucks are so expensive. Delays meant my truck was off the road for two weeks in December but I was able to cut a few big checks, bite the bullet and get it back on the road relatively unscathed.
I have a tendency to click on advertisements directed towards the working poor and lower middle class. So the internet assumes that I must be interested in such products and shows me more of them every day. I get constant advertisements for Amazon EBT food stamps, lifeline phone services, and HEAP heating assistance. At the same time my interest in homesteading and farming – and frugal, low consumption living reinforces the internet advertisers belief that I must be very poor. I’m a bit of a car geek – even though I’m not that bad besides my truck – but I get tons of ads for jobs in manufacturing, mechanics, truck driving and warehousing.
But when I see these ads I have to always browse through them for the fine print. Many of them are incredibly scammy, with high interest rates and fees often hidden from the unsophisticated. I’m no financial genius but certain products I know I wouldn’t want to touch with a 10 1/2 ft pole. But on the other hand, for some people, these expensive fee-laden products might be their best choice compared to the alternative. Renting tires might be a good alternative to loosing your job as you need a car to get to a job in the suburban office park. Often being poor and having no money can be very expensive. It’s often much cheaper to buy with cash, shop at the big box store or even own a car for many trips then take a taxi. And heck, the banks don’t charge me for money, they pay me for the privilege of holding my money for me.
Now that I make a good middle class income, I often get looked down at for my working class tastes and my choices not to live a higher consumption lifestyle. I’ve had the same run down apartment since college. I don’t have parking at work, even though I could have a spot in nice garage in a premium indoor garage if I wanted. I take the bus to work every day, I don’t have internet or television at home except for my phone. I do watch YouTube but usually it’s things like videos about farming, the woods, off grid living or sometimes technical topics like programming or building electronics at home. I keep my heat at 50 degrees except in very cold weather and don’t have air conditioning. I shop at Walmart for food, clothing and basic supplies. I like how Walmart is one stop shopping and often has good prices on basic and bulk goods. I prefer camping in the woods where I can have a fire and drink cheap beer to any fancy vacation. And I really avoid buying stuff if I can avoid it.
So much of this world these days is about high consumption and throwing away as much possible. If you don’t buy a lot of stuff and throw a lot away, you must be severely impoverished. The only way to be green after all is buy greenie branded electric cars, fancy bamboo tooth brushes, compost boxes and solar panels, not to consume less. Even though solar panels are made out of toxic materials. Living simple less stuff just isn’t considered green – just impoverished. But some day, hopefully not that many years in the future – I’ll have my own land. I’ll be able to heat with wood, make my own electricity, manage my own trash, raise livestock and produce my some of my own food. Not waste my money on compost boxes but feed food scraps to pigs and chickens or mix in with the manure to actually make the land grow food. Be actually closer to the land that I hunt and farm and not just spending my hard earned money pretending to be a greeny by buying the latest in disposable green products to soon be buried in a landfill.
The U.S. labor market got an unexpected jolt last month, as employers added 517,000 jobs and the unemployment rate fell to its lowest level in more than half a century.
Not even the rain, snow and ice that blanketed much of the country last month was able to freeze the labor market.
Job gains for November and December were also revised up by a total of 71,000 jobs, according to a report Friday from the Labor Department. The January job tally is based on surveys conducted three weeks ago, when many states were in the grip of severe winter weather.
The data shows a job market that remains tight, even as the overall economy shows signs of slowing. The unemployment rate fell to 3.4% — a level not seen since May of 1969.
The Federal Reserve raised interest rates by a quarter percentage point Wednesday, its eighth increase in less than a year as the central bank continues its crackdown on inflation.
The hike in the Fed's benchmark rate is the smallest since last March, and signals that policymakers are shifting to a more cautious approach, after spending much of last year playing catch-up and boosting borrowing costs at the fastest pace in decades. A recession might be coming. Here's what it could look like Economy A recession might be coming. Here's what it could look like
Higher interest rates have begun to have the desired effect. Consumer spending has cooled in recent months. And inflation had dropped significantly, although prices are still climbing faster than the central bank would like.
