Fight inflation in a variety of ways
I know that compound inflation (not the rate of inflation, but it is a good thing when that is less) is affecting all of us. I feel it every day myself when everything that I buy is more expensive.
From food to olive oil to toner for my printer to laundry detergent, it is all much more than just a few years ago. The same is true of just about everything else that I pay for, including water, gas and electric, health care and cable. But I really know that inflation is affecting everyone when I see only eight cars in line at the Starbucks drive-through at 11 a.m. instead of the 14 cars I always saw a few years ago.
The bottom line is that compound inflation is not going away, so the prices on so much of our spending and shopping lives are not going to go down (sorry to be another of the countless voices to have to tell you that ). So, the answer is what it always has been; spend less or make more, including moving to somewhere where the cost of living is lower, which may not really be an option for most of us.
Find discounts where you can
Nothing should be off the table, including store brands, discount stores and coupons.
I saved $13 at BJ’s the last time that I was there, and most of the items I purchased were store brands. Speaking of discount stores, that same day, because I saw an advertisement, I saved 52% on premium lawn products at Ollie’s, and a landscaper, who happened to be there shopping for other things, told me that I would never find prices that good anywhere else. Then I saved 56% on goat cheese at Aldi’s vs. at our premium grocery store two blocks away.
By the way, those three discount stores are less than half a mile away, all told between them, and they are in my normal shopping area, not 10 or 15 miles away, which can cut into your savings. Discount stores, sales, store brands, and coupons all can make a very big difference.
I do feel for everyone in these tough times, especially those who are living frugally but still struggling. Not so much for others who are not living frugally and going into record credit card debt without making every sacrifice and adjustment. It is not judgmental on my part, that’s not me; it’s just a fact.
National debt is going up and up
On another subject that we often discuss, I recently heard a conservative talk show host say that our national debt is increasing by $1 trillion every 100 days. I was shocked, and, to be honest, doubtful, but then I did some research, and that is what CNBC reported on March 1. In February, I had read how our deficit for this fiscal year was estimated to be roughly $1.6 trillion, for which the administration seemed to be patting itself on the back (a real attaboy). It made me wonder if the federal government would have a big parade with fireworks if they ever passed a balanced budget.
I don’t mean to make light of all of this, because this is going to have real consequences for our younger generations if this problem is not addressed. I wish I had some better ideas about how to make our politicians more concerned about this problem than they are about their spending programs and services, and maybe strike a better balance, but I don’t.
So, I keep writing and teaching that younger generations need to be prepared to pay more taxes. It’s not political; it’s practical personal finances.
Employment and college decisions
On a different subject, as many high school students are, or soon will be, making their college choices, there is so much news on the state of employment in our economy, which should provide them with a lot of food for thought.
Over the last few months, we have all heard and read about accountants and attorneys being laid off in larger firms. Also, that MBAs, many in the financial services area, are not finding jobs at the rate they once were, and that AI is threatening many jobs, including white-collar middle management, tech and media jobs.
On the other hand, healthcare jobs continue to be a growth area, and, as we have discussed, overall college enrollment is down, but enrollment in career and trade center programs and apprenticeship programs is exploding. That said, I found a recent article in the Wall Street Journal very interesting.
It reported that Walmart store managers, with an average base salary of $128,000, bonuses and stock awards, can now receive a total compensation of more than $400,000 per year. The report indicated that the job, which often includes overseeing 350 workers, $1 million in annual sales, including e-commerce orders sourced from the store, has become more complex, so in 2022, the company started a program to train college graduates.
In the past, many had started as clerks and rose through the ranks, which is still happening. The bottom line is that there are so many career paths to success today, you just have to keep your eyes and ears open, and sometimes think outside the traditional boxes.
Scrutinize statements
On a final subject, subscriptions, despite all of the past media coverage on the need to stay on top of them, the reports and advice just keep coming.
I am not sure how it is that Americans, because of inattention, keep paying for subscriptions that they don’t actually use enough to warrant continuing to pay for them. Personally, I have five subscriptions, including for a newspaper this column appears in.
Three are automatically charged to my credit card and two I pay by check. I review my credit card statement in detail every month, and evaluate whether all the charges make sense, and do the same with the bills I pay by check.
It seems that is all that it would take to avoid paying for things that don’t make sense. Take the time!
John Ninfo is a retired bankruptcy judge and the founder of the National CARE Financial Literacy Program.