Read? How Inflation Affects Your Cost of Living
When the Going Gets Expensive
It’s easy for most people to feel the effects of cost-of-living increases in their daily life. But rising prices hit the lower and middle classes especially hard. Higher food, gasoline and utility costs mean less money remains once these necessities are paid for, leaving little for savings or discretionary spending. To compensate for the rise in prices, consumers tend to buy less, switch to less-expensive substitutes or drive farther to find bargains.
Uncle8888 is still trying hard to understand how (1) past inflationary rate has actually affected his household living expenses as compared to theoretical extrapolation based on 2.5% yearly inflationary rate; and (2) future yearly 2.5% inflationary rate starting from 2019.
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When you discover the secret, then please let us know.
ReplyDeleteLike you I have personal expenditure going back a decade. There is no clear pattern to it. The only item that shows a constant climb is my health insurance and rent, which increase each year. All the rest just bump around.
Going forward I take the maximum spend in each group, food, rent, fuel, internet etc and use that number to plan the future. This makes it very conservative, as there is then a lot of discretionary expenditure which I can fine tune on a yearly basis.
That is about the best solution I have come up with.