Inflation and Living on Fix Income
 

Have you notice how prices have sky rocketed lately?

Businesses looking for help.
Raising cost of Transportation.
Grocery's are going through the roof.

Headlines say inflation will get worse as supply's are harder to get.

How are you holding up in your retirement years if on fix income?

Things are becoming seriously more expensive than they were. I don't think it is going to get better. I think that it means that SOME people who live here will not be able to make ends meet.

I'm not noticing that much of a difference. I use coupons when I remember to bring them with me, and I have a few "shopping reward apps" that give me points that I can trade in for store credits. But I've always done that. I also finally learned how to make my sister-in-law's sauce and lasagna. Sounds unrelated right? Well...
$50 in ingredients nets me:

Enough lasagna for two people for 3 nights of lasagna dinner, plus an extra lunch-sized serving or two.

AND

Enough sauce for 4 chicken parmesan dinners

AND

enough leftover meatballs, sausage, and sauce for 2 macaroni and meatball dinners PLUS 3 more sauces for two weeks worth of macaroni and meatball dinners/lunches or meatball subs.

The only thing extra I have to buy, is chicken cutlets, ground beef (on sale on Tuesdays at Fresh Market for $2.99/pound), a loaf of bread for the garlic bread, and a package of salad to last a few days' worth of meals.

Total additional cost might be $25. So $75 for almost two months' worth of lunches and dinners at least twice a week, for two people.

Holding up fine thanks. It's all about managing your priorities and your budget. It ain't rocket science.

I don't really see it. There are supply chain issues with major ports backed up that will cause temporary price jumps. Like lumber earlier in the year - now ancient history.
2-4 % inflation is normal, we just have not seen it for a while because of the very accommodating fed.
Look for a nice hefty jump in your Social Security check starting in Jan as well.

Relax

That seems pretty insensitive.

Not everyone was able to amass a fortune in savings before they retired. Not everyone is even able to quit working when they come down here. Seniors on a fixed income - usually spend according to their means.

But when the cost of those means goes up..

They can no longer afford those things. In some cases, it's health care. In some cases, it's food. And in some cases, it's mortgage.

I know some people don't like charge cards, but those credit rewards really build up over time.
Yes, using coupons are another way to save.

Aldi's saves us a lot compared to Publics and even Walmart on some items.

Dollar store is still full of one dollar items, so I'm good. :icon_wink: But yes lots of inflation since Covid.

Are we going to believe the "nothing to see here" crowd or our own lying eyes? We've all been experiencing inflation, which is a at 6% and that's probably a conservative estimate. We have all encountered shortages of goods at stores or rationing, higher gas prices, higher costs at restaurants, grocery stores/retail, etc.

There's still a noticeable shortage of workers at most retail and service-related businesses. Costs to remodel or improve your home and construction costs in general are very high and continuing to climb despite your claim about lumber prices. Let alone getting labor to do the jobs. And you can't even buy some things like new cars, golf carts, boats etc. and used prices for these things have skyrocketed. You wanna talk about supply chain issues? The real fun has just begun, there's more misery on the horizon.

2-4%??? Evidently you don't buy gas or food and I feel sorry for anyone needing appliances or to replace their car. The price of steel has more than tripled and it ain't ancient history, those who were ready to buy a home have found that the home they can now afford is not the home they were hoping for. 2-4% is not even close to being realistic. Lumber, although down from it's high in May is is not ancient history, it is still nearly 30% higher than a year ago and is forecast to go right back up by the end of the year along with just about everything else. This is not over by a long shot and I do truly feel for those who are on a fixed income.

COLA should be about 6% in 2022.

Their China shipments will be slowing down….

"Should Be" are the key words. They will find some reason to make it closer to 3% either by saying it's only a temporary increase in costs or Medicare can't afford what the adjustment "should be".

If you can't get by start using a food bank. They are supplied by donations for people that can't get by.
Don't ever be embarrassed to use a food bank, that's what they are there for. Use thrift stores instead of department stores, lots of like new and even brand new items there for pennies on the dollar. Shop the dollar store for everything else. You'd be amazed at how much you can save by using the resources that are out there and no one else needs to know unless you tell them. Please use these resources. Contact the pharmaceutical companies as well, they have services set up for low income for free or almost free prescriptions.

"most of us live on fixed income, its called a salary. . . "

I don't remember where I heard this from a long time ago, but its true

You mean a salary for being retired? :confused:

From the census data, I really don’t think many Villagers are living the Village lifestyle off their social security check. Most have done quite well financially the last few years. Our homes have greatly appreciated in value and the stock market has performed with record returns. There is still time to turn some of that appreciation to cash and if in the market take some profits if you project a personal budget shortfall because of inflation. Just my personal analysis and observation of where the vast majority of Villagers stand financially today. There is a definite shortage of labor and a part-time job will do a lot to makeup a personal budget shortfall if that becomes necessary. Besides, a part-time job can be an energizer for many retirees whether you can use the money or not.

My car is a diesel. Just filled it up. Price was withing 5 cent of the same price it has been for at least a year ($3.00 gallon). Everything else you listed above are supply chain issues which will sort themselves out. Stock market gurus (Not the radio/TV hacks) are not worried, either am I.

The COLA is based on the CPI-W. So, you are suggesting that "they" are planning on mucking around with the CPI-W calculation?

Or not. It might get worse because it may be driven by variables other than crowded ports or manufacturing delays. Maybe some of it is intentional.

inflation is not from covid..

I have different view, we have been fortunate that inflation had been flat the last 10 or so years. Knowing that eventually prices will rise, you acumulate savings during the flat line inflation years. ie plan ahead

all you people better wake up!!! 6$ a gal gas, 7.50 a gal milk, stock market will tank as well as housing. I just spent 116$ in aldi's for 70$ worth of groceries. That's what I paid last month for the same groceries. This will continue for the next 3 plus years.. hope everyone is happy in their rose colored glasses.

98% of the current debt was on the books the first of year , maybe things get worse maybe they don’t but there are always the prophets of doom whether things are good or bad crying, just wait see how bad things will be in the future it will be legendary , but we seem to always bounce back and thrive , although I predict that milk will go so high everyone will buy a cow

A 65% increase in one month at Aldi's.....hard to believe?

My post regarding "chicken little the sky is falling" was in response to a post predicting gloom and doom, $6.00/gal gas and $7.50/gal milk.

I have no idea whatsoever what your post was referring to, nor do I have a clue what a "moonbat" is, nor do I know what you "figured out all by yourself"

Consider yourself wrong, AND corrected.:1rotfl::1rotfl::1rotfl:

PS---How did I get to be so smart?----born that way, had smart parents. But it's all relative:1rotfl:

no it means that you don't have to be retired to be on fixed income. .
unless you are in sales with commissions, or hourly with overtime,
your salary is fixed. . hence your income is fixed. .

ie inflation hits working people with salaries as well as retired people
with social security. . both are fixed income

Are you sure its going to result in buying a cow versus having a cow?

:boxing2:

I really question that number as well. I've been doing the shopping this year (most of it) while my wife is out with some back problems. If I came home with price changes anything close to that (or not even close) believe me, I would have heard about from her. Maybe Aldi is moving back to what would normally be their prices since they have been open for a while now? I don't shop there, so don't really know. I do all my shopping at Publix - lots of nice bo-gos and 2-fers.

Today on wall street:
"Dollar Tree (DLTR) had been the biggest laggard, falling around 6%. It comes after Wednesday's spike on plans to add price points above $1 across Dollar Tree Plus stores. It will also test price points above $1 in some legacy stores."

You just need to tell the community standards police that it's a big fat dog with damaged vocal cords.

Insensitive perhaps is one term. However it is a matter of finance. What you have vs what you spend. It always has been so. Budget. At the stated goal of 2% inflation, reality is they have never in history had a goal and achieved it for a period of time.
In any case at 2% in 36 years you will need two dollars to buy what our already inflated dollar buys.

Thanks
 

Thank you for your advice & council:)

Like most of these posts, it seems to go down hill. In terms of inflation, I am old enough and most of the others posting are to remember the logo for Mcdonalds was and get change back from your dollar. Heck I remember as a kid my allowance was .25 a week.
You could buy a slice of pizza for fifteen cents and a small soda for ten cents. One of the few things that has not inflated was the deposit on sodas. They were glass not land fill and you got two cents for the small ones and a nickle for the large ones. Oh and my father was making $100 a week and supporting a family of four. We did not have a TV till I was like 7 or a car till I was like 10.

Shopping, it is sort of a sport for us. Winn dixie and Publix are both roughly 3 miles away by golf cart. Aldis is not golf cart accessible but is also 3-4 miles away. The CPI
consumer price index last posted was up 5.5% most of that is food, fuel. Transitory. That is wishful thinking not reality.

Last read a 6% increase in SS is coming up for everyone at the beginning of the year. We are all, working and being careful with our money. Still Plenty of people going out to dinner, entertainment, buying new cars, trips, so I don't think people are struggling as much as you think. Yes prices are going up, truckers , shipping , getting the food to the consumer, labor is down due to virus.. we work with what we can.

The Dollar Store (or was it Dollar General?) just announced they are raising their prices by 25-50%... :icon_wink:

Not everyone who owns a home in TV is retired...Yet...

got a link for that?

But of course...

Inflation's latest target: Dollar Tree - CNN