The Cost Of Living Strain

How is your financial house doing?  Ours is hurting.  Gas is over $4 a gal here, the “fudgies” (a name given to our summer guests who visit us because of Lake Michigan & Fudge) are arriving and prices are just going to keep going up, because these people can afford to pay top dollar.

 

I had a part time job that I unfortunately just lost because of the economy.  It’s a job I’ve had for almost 17 years.  This is a rather large blow to our household and I thought we had cut everywhere we could cut.  Now I’m going to have to dig deeper.

 

I am 42 and my husband is 46 and this is mid life for us.  We have gone over what we will need for retirement a “check up” so to speak.  It’s not looking pretty.  According to Smart Money,”the Medicare trust fund will be exhausted five years earlier than previously thought 2024″, we have a 401K but is that going to be enough?  What are average people doing?

 

I don’t think there is a middle class anymore.  There is wealthy and there is poor and no in between.  I’m not sure what started the downfall of America but think about this.  The Roman Empire lasted 100s of years and fell.  The Aztecs lasted 100s of years and fell.  Is it time for us to fail as well?

 

Maybe oil and that most of the USA depends ONLY on oil for transportation is going to be our downfall?  Much of our economy has been stalled because of oil.  Our house cannot afford to heat with oil, nor can we afford to drive.  A tank of gas that used to cost me $30 is now costing us $60.

 

The food prices have jumped.  Problems feeding USA families has been realized by companies like Kelloggs who is promoting their “Share Your Breakfast With a Child” campaign.

 

Did you receive a raise this year?  We didn’t even receive a cost of living adjustment and we were ok with that because my husband still has a job.  While government and news would have you thinking that the jobless rate has gone down and the economy is getting better, the real truth is the jobs that people are getting are not jobs that will carry a family through.  Yes, people are working, but they are working for far less than their family needs and many times minimum wage.

So here is the basic economics of it.  Jobs have gone up but people are still making less.  Employers aren’t giving cost of living adjustments nor can they afford to.  Gas tanks are draining family budgets, from yahoo finance is a good article to read too. The price of gas (to go to work) and the price of food have almost doubled which in return is giving you less.  I know it sounds like I’m going in circles and many times economics does just that.  So think of your income as a pie and before all of the inflation, market drops, etc you were only using 1/2 of the pie to live on.  If you are an average American you are now living on 3/4s of  of that pie or more, only 1/4 to pay other necessities.

 

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