This week we got to pay Uncle Sam for the first time. UGH!!! In the past year we've cut the umbilical cord to cable, eating out, ordering pizza's, going to movies...We're a middle class family and have always lived below our means so we can save. So what is happening to our savings?
It doesn't seem to make sense that we cut our budget, paid off debt and now only have a mortgage to pay and we are slowly taking on water. Why? Last year I worked part time as a vendor for wally world. Every week I went to 8 stores and did an audit of sorts that scanned 300 (out of 1200) of their top selling products. The products changed every week and I saw them so much I started memorizing UPC codes. Crazy? Well, I also started memorizing prices. Then I noticed the prices inch up. Food, electronics, diapers and baby food went way up. I saw store prices increase 20-25% across the board 2 different times. The cheapest products and food for the WIC program and Great Value foods went way up. Basic pasta went from .97 a box to 1.25. I remember a 2 liter of coke being .97 then 1.24 and now it's 1.79! That may not seem like a lot but...when prices go up across the board? I'm starting to get the picture. I knew it was happening last year when I saw the prices going up.
Gas, food and electricity are the main culprits. With no cc debt, no car debt, no cable and entertainment expenses reduced to the bare minimum we should be, for all intensive purposes, making headway. At first we were saving a bit, now we're maintaining. This week Mike is on vacation and we aren't going anywhere. Uncle Sam had to be paid. We're hanging out at home.
In the meantime, we're being squeezed by increasing prices and we aren't the only ones. The gap between the have's and have not's is getting wider and the media keeps saying the economy is "turning around"? I think there are a lot of folks that would like to see the bend in the road...but don't.
My thoughts and prayers are with those who struggle more with less. Every night I send up a prayer.
Peace to You and Yours!
In the meantime, we're being squeezed by increasing prices and we aren't the only ones. The gap between the have's and have not's is getting wider and the media keeps saying the economy is "turning around"? I think there are a lot of folks that would like to see the bend in the road...but don't.
My thoughts and prayers are with those who struggle more with less. Every night I send up a prayer.
Peace to You and Yours!
2 comments:
Some people don't seem to be too concerned about the economy. They believe what they are being fed by the media. But anyone who shops for their food or buys gas for their car certainly does see it. These jokers in Washington need to get their heads out of you know where and actually live a week with a middle class family, one that doesn't qualify for any outside assistance to get a real feel for how bad it is becoming. If it's getting so good, why do I see more and more for sale signs going up on houses everywhere?
You're so right. I didn't mention that our house has lost over 50% of it's value and is very underwater. We have an ARM and since interest rates haven't gone up we're ok. We were going to refi but now that it's underwater we can't refi, sale it or modify it. Every house around us for sale is a foreclosure or short sale except one house. It's WAY overpriced for the market and no one is going to buy it when a foreclosure down the road is going for $49,000 and they want $140,000. It's pretty sad. Now all the folks that can't sell are renting and they aren't stellar renters. We'll end up renting ours out to move to country pretty soon. That's a whole other post! Thanks for reading!!! :)
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