Inflation Worry?

tortoise

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Please read this article, it's very enlightening. (and not at all political)
 

baymule

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We’ll this writer certainly is cheerful about inflation. He cut out the price of food ( kinda necessary) and gas (also kinda necessary) to bring the percentage down to make inflation more palatable. He operates on the assumption that people have well paying jobs with investments. That’s real nice, but many people don’t fit in that bracket. A 5 or 6% , later he mentions 8%, hike on everything consumable hurts those people. Strangely he didn’t mention the rising cost of food and fuel in his cheerful summary of “inflation is good”.

He does say inflation is only bad for people stuck with an income that does not keep up with inflation. Social security is supposed to get an 8% adjustment for inflation next year. That sounds wonderful and good until you figure what people actually get from SS and multiply that by 8%, it will help, but it won’t buy food or fuel.

No problem! Just buy an electric car and never care about gas prices again. The electric grid doesn’t produce enough now. So everyone run out and buy an electric car and contribute to brown outs and rising prices.

Yay for the Bubble Land this guy is living in and all those who are with him. I don’t live there. 8% inflation hurts. 8% raise in SS will be a tank of diesel, thanks for that. But I shouldn’t care about the price of food and fuel, it doesn’t count in Bubble Land.

Inflation is good if you are a borrower. Your house cost $300,000 and is worth $600,000 now. Your bank only wants the $300,000. That is good. Until you sell and have to spend that much or more to get another house because inflation has raised the price of housing every where.

I’m not being political or negative.
I can appreciate the positive attitude, but I live in the real world.
 

tortoise

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The bubble he is living in is called "lack of scarcity." Scarcity (in any context) dramatically changes people's cognition and choices. Fantastic book on that topic here: https://smile.amazon.com/Scarcity-Having-Little-Means-Much-ebook/dp/B00BMKOO6S/ref=mp_s_a_1_1?crid=2RHE7JQCXY5MP&keywords=scarcity+why+having+too+little+means+so+much&qid=1668036199&sprefix=scarcity+,aps,445&sr=8-1

The author retired at age 30. I believe he is 48 now. He's part of the FIRE movement, in which people live extremely frugally and save/invest to retire early. He lives in a city and promotes bicycling or walking rather than driving as a way to save money. (Frugalwoods is a FIRE blog that is more relevant to rural SS lifestyles.)
 

tortoise

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He operates on the assumption that people have well paying jobs with investments.
True, but his definition of well paying is lower than average. He breaks down many ways people waste money - large and small in his case studies.

Dave Ramsey is a more relevant model for those starting in debt or with a low income.
 

baymule

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He and I live in different worlds and I don’t want to live in a city-any city and ride a bike. I’m 25 miles from anywhere on a dead end road. I love my life and sure wouldn’t trade it for his. Ok I get it, he is living a financial Sufficient Self lifestyle. In a city with everything close at hand, that makes it a lot easier to save money by walking or riding a bike.
This forum is all about living within one’s means, being as Self Sufficient as possible. Most of us, and the author, practice the same ideals, just in different ways.
 

tortoise

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He and I live in different worlds and I don’t want to live in a city-any city and ride a bike. I’m 25 miles from anywhere on a dead end road. I love my life and sure wouldn’t trade it for his. Ok I get it, he is living a financial Sufficient Self lifestyle. In a city with everything close at hand, that makes it a lot easier to save money by walking or riding a bike.
This forum is all about living within one’s means, being as Self Sufficient as possible. Most of us, and the author, practice the same ideals, just in different ways.
I agree, that's why I love reading his blog. Even though many of his ideas don't apply to rural living, it makes me think more carefully about which of my habits are truly needs versus wants/luxuries.

I thought the non-political perspective on inflation was interesting too. It's hard to find realistic news on economic issues due to election season. I'm personally not convinced we're seeing 100% true inflation - record corporate profits? Shady AF, IMO. Effects of pandemic, war and abnormal climate all at the same time too. I know many people don't care the cause because they're just trying to make ends meet. I prefer to understand the reasons because I want to know if they are temporary or long-lasting. e.g., what types of adjustments do I need to make right now?

I read the book "Scarcity" (linked above) this week. Also very thought-provoking. One of the topics discussed is the big reactions when gas prices increase. (I like this book because it applies to any resource that is scarce - time, money, physical energy, uninterrupted work time, social relationships, food, etc. I enjoyed the discussion of how people get trapped in scarcity (emphasis on poverty here). It does a great job of explaining the systemic problems at play, how to fix them, AND it also addresses behaviors that perpetuate scarcity. Having been trapped in poverty in the past and experienced the effects of scarcity - and being on the other side now - I thought this sensitive topic was handled perfectly.)
 

tortoise

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He and I live in different worlds and I don’t want to live in a city-any city and ride a bike. I’m 25 miles from anywhere on a dead end road. I love my life and sure wouldn’t trade it for his.
I go back and forth on this. When DH dies, I don't know if I want to keep this farm. Part of me wants to move to the nearest city (population 75K-ish) and live in an apartment downtown - near the library, farmer's market, performance center, beautiful parks with frequent events, and on city bus routes. I suppose it depends on my age and ability at the time.
 

flowerbug

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i've never had a problem living in a small town, but the bigger cities are often way too much noise for me and large crowds are things i tend to stay away from. not that it has prevented me from spending some time in quite a few large cities, but a few weeks or a month at a time is about as much as i want to visit those and then i'm ready to be elsewheres...
 

Trying2keepitReal

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I go back and forth on this. When DH dies, I don't know if I want to keep this farm. Part of me wants to move to the nearest city (population 75K-ish) and live in an apartment downtown - near the library, farmer's market, performance center, beautiful parks with frequent events, and on city bus routes. I suppose it depends on my age and ability at the time.
I can relate and feel very similar. I think I might live a few years at the land but probably would move into the city as well....that same city ;)
 

Mini Horses

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Well I'm different. DH and I had farm and city condo. Sold farm before he passed. I bought a smaller property...vacant farm land, before he passed. I sold condo, built a house on new land, as planned. Still here, 23 yrs later. At some point I may sell out. But don't like what's happening in area cities now. So...may never move until they plug me into the crypt next to DH. :lol: who knows?
 
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