According to this article from Forbes, U.S inflation rose by 7% in 2021, which is a new 40-year high.
This is the result of increases across most consumer goods and services, but the biggest contributors are shelter, food, and used vehicles (the latter is the result of a chip shortage affecting manufacturing of new vehicles… supply and demand, as they say!).
Price increases are nothing new, as it seems prices go up and up each year.
Over the past few years, prices for some staples (notably, shelter and food) have skyrocketed.
Let’s look at some examples of current trends…
Food: a steak may have cost $5.99/lb back in 2020, but the USDA expected beef prices to rise 9-10% in 2021.
That means that $5.99 steak will now set you back $6.59. That 60 cents may not sound like much, but what if that increase applied to every meal over 30 days? That’s an extra $54 a month per person.
Housing: On average, rent and homeownership saw an increase of 18.6%. For a family spending $800 a month on housing, this means an increase of $149 each month!
Now, that being said, I’m sure you’ve noticed that wages haven’t increased to match these expenses.
So, what can you do?
Depending on your line of work, you may never see an actual wage increase. Wait, what?
Simply put, if your yearly wage/salary increases do not match current inflation, you are getting a pay decrease.
That steak costs more by default if your wages don’t rise to meet it (meat? sorry!).
Perhaps the simple solution if you aren’t receiving wages to match today’s world is to shop around – and I’m not talking about steak anymore.
These days it’s a fluid job market; you can potentially increase your wages by 10-40% just by job-hopping to a new employer. If that stagnates after a few years, rinse and repeat the cycle.
You’re doing yourself no favors long-term if you aren’t receiving appropriate compensation!
Even if you aren’t in a position to change jobs, your dollars matter.
The world is keen on separating you from your hard-earned money, and the pressure will only increase with time.
We want to help you hold onto your money and weather your financial future. Give us a call at 513-563-PLAN (7526) or reach out online to set up a free 15-minute consultation and see how you can put your money to work for you.