The Cost of Inflation
These days, if you listen to the news, even in passing, you will hear a variety of statistics about inflation; statistics that are seemingly at odds with each other and certainly at odds with the reality of the American family and the cost of inflation.
What is Inflation?
Economic Inflation is defined as a general increase in prices and a fall in the purchasing value of money. The latter part of that statement is where most American families live… and struggle.
In September 2022, the Detroit Free Press reported the following numbers. Year-over-year price increases from August 2021 to August 2022.
- Dairy and related products: +16.2%
- Cereals and bakery: +16.4%%.
- Eggs: +39.8%.
- Flour: +23.3%.
- Butter and margarine: Up 29.3%.
The problem with these numbers is that by August 2021, prices had already increased by a great deal, making the overall increase so much more. American families were already feeling the pinch.
Going to the source, the farmer, you can hear the reality of the future outlook for food prices. You can read the details in this Fox News article and see the video in which a farmer predicts worse food shortages, higher prices in 2023 amid inflation, drought, and interests rate hikes.
The Cost of Inflation – Feeling the Pinch
The pinch began with fuel prices that began exponentially rising directly after President Joe Biden took the oath of office in 2021 and began shutting down energy. From that point, families have been hit with spikes in the prices of everything; utilities, food, basically everything that matters.
Various talking heads in the economic industries, media industry as well as the Whitehouse have done their best to talk down the impact of inflation–the real cost of inflation.
Their attempt to make it sound ‘transitory’ and their many attempts to lay blame on Russian President Putin or even Covid fall flat with most families because it means nothing when their paycheck runs out before their bills do.
What does mean something is getting down to the nitty-gritty of how families are forced to operate in this kind of financial situation. Forget the talking heads. Let’s talk about real day-to-day struggles for real families.
In My Situation
Even though we have already taken a lot of steps to strengthen our family’s situation, we are still having a great deal of trouble making up for the downturn in the economy and the upturn in inflation.
We grow and raise most of our food, but not all of it…yet. But, we live on a budget so each trip to the grocery store is a struggle. We have spent a great deal of time and money in the past few years upgrading our home and farm, but we’re not finished yet so the utility increases have been devastating.
On top of that, the fuel costs over the past 2 years have gutted our traditional getaways and have cut way into my husband’s income, as an independent builder. We have 2 boys (though, they are adult-size) still at home who continue to grow regardless of what the economy does, making the increase in the cost of clothes and shoes that much more unbearable.
The cost of inflation has hit my family just as it hits other families…and my boys feel it too.
What Families are Saying about the Cost of Inflation
I talk to and hear from a lot of people and I’ve heard many different changes that people are having to make in their daily lives in an effort to make ends meet. I know families who have had to refinance their mortgages in order to get cash out for living expenses or to lower payments. However, that was prior to the spike in interest rates. At this point, that is not much of an option.
I recently put out a couple of questions on social media to find out some specifics from real families.
Here are a few responses that I received about how people are coping with the Cost of Inflation:
Teresa from Wilson, Oklahoma, mentioned that eggs are just one of the big changes they have had to make in their regular life. With a big family, a normal breakfast will take a dozen eggs but with the ridiculous rise in the price of eggs, that is something they have had to stop. They only have about three laying hens currently and are working to get more to make up for the deficit.
My husband is a builder and we speak to a great many people who are building or remodeling their homes. Most have had to make huge changes based on the incredible rise in building materials and supplies.
Lewella, from Graham, Oklahoma, began a house build right before things took a turn for the worse. During the length of her build, prices for materials tripled changing the outlook for their loan payments.
An online friend, @raising.seidlings, mentioned that she is having to get a part-time job just to support basic family expenses. And, this is a homeschooling mom, therefore her family is also having to make additional adjustments in their lives and schedules.
Waynette, from Ardmore, Oklahoma, responded in this way:
“Yes, inflation has had its impact on my family like every other. The cost of groceries, gas, clothing, and even utilities have increased. Some costs have gone up 4 or 5 times what they were. We have 7 children and 6 of them are still at home, so I have had to start planning even better before grocery shopping and being more selective. My family is eating out less frequently, but I think that’s probably better for us anyway!
We are striving to be debt-free and have had to slow that entire process down just to pay the bills and keep food on the table and gas in our cars. We definitely have less left over after every paycheck.
I clean a few businesses for a little extra spending money and I’m always looking for more!”
When I asked my sister, April, the same question, her response to what they are doing differently was:
“Cooking at home more, eating out only when necessary. Repairing the truck that should be traded in because cars are too expensive. Bought chickens rather than buying eggs, hoping to produce enough to sell. Downsizing gift occasions; Christmas, birthdays, etc. No more discretionary spending. Clothes and shoes as needed, not as wanted. …And that is just the beginning.”
When I posed the same question to my daughter, Paxton, a young mother, trying to make ends meet, her reply, I must say, made me proud.
“I was already raised to be careful and cautious with money. We don’t go out to eat, we cook. We don’t buy name-brand foods because that’s just silly. We don’t play into the expensive way that people live to make themselves look more desirable or rich or fancy.
Making a budget and meal plan that isn’t based solely on what to post on Instagram, that’s what I’ve done differently than others. We purchase food for nutrients and we stay busy around the farm to build gardens and raise livestock. In that way, it has impacted my life for the better.
Unless we are talking about the price of gasoline. But I don’t travel a whole lot, only out of necessity, because we have built a life here at home.”
The Real Cost of Inflation
So many people have had to dip into their hard-earned savings just to be able to pay monthly bills and feed their families. Some are working 2 or 3 jobs just to keep up with their normal month-to-month living expenses. Many are putting off long-planned vacations, downsizing their lives, and even selling off items that they own, at a loss of course, just for the extra cash for gas or food.
The real cost of inflation – the actual impact – on American families can be boiled down to more struggling to have the same or even less quality of life.
What Can We Do to Offset the Cost of Inflation?
It can sometimes seem pretty bleak. Working more, having less. It’s a ‘tough pill to swallow’ as my grandmother would say. And, when you are looking at an uncertain future filled with those ‘tough pills’ it can certainly seem unending. Is there a light at the end of the tunnel?
The fact that most American families live somewhat at the whim of our government is a sad state of affairs, especially considering that most of the people in leadership positions DO NOT consider it – or us – when they make the decisions that so desperately affect us. It can feel like we have no control over our lives due to our government. However, the answer lies within the statement.
Gaining More Control
The way that we gain more control of our lives in this kind of situation is to detach our lives, as much as we can, from the government that is constantly pushing and pulling one way and then the next. A family that is dependent on the government is then forced to sway with the whims of the government.
I want to make sure my intention is clear. I am not advocating anarchy or an overthrowing of the government. In fact, I detest that kind of thing. The government will change, it always does–hence the push and pull. If enough people wake up, it will change for the better…but for how long? That is why I am advocating more of a personal detachment.
Steps We Can Take
In my next few articles, we will be exploring a variety of steps that families can take, not only to make ends meet in the near term but also to extricate themselves from the entanglement with the government that keeps pushing them back down. I urge you to subscribe and follow along as we go through many different options that could help your family.
I also want to hear from you. Let me know how things are going for you and your family, what you are seeing, and what you are doing to compensate for the cost of inflation.
I will also be putting forth all of the resources that I am gathering to assist families in saving money and making ends meet. Let’s work together and pool our resources, finding a way for us all.
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You may enjoy some of our other informative articles, like How to Cut Expenses When Things Get Tough and Budget Creation and Financial Planning.
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