People invested during the stock market during COVID and doubled their money. Their businesses got PPP loans they didn’t have to pay back. They refinanced their homes at under 3%, and their home values have increased by 40%. Then they got raises. If you didn’t do these things (especially if you don’t own a home from 2021 or prior), congratulations you are now poor.

I just went to the bakery and got a single serve cherry crumble, a salted caramel bar and a croissant. It was $24.

I am panicking about the future.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I mean my purchase patterns aren’t changing because most of them are pretty necessary (food, daycare, rent, …). I suppose I could insist on cheaper/boringer groceries but I frankly don’t have the energy. I keep paying because I have savings and am planning to move to a lower cost of living areas where hopefully my salary will stretch further.

OP here. I agree but I’m more talking about things like new cars, travel, fancy home renos. Full steam ahead it seems for so many people around me. I shouldn’t be shocked but I am.

We have a HHI of about 150K and I would say we are spending more than before. I feel like we lost some time for experiences with our 11 year old so I'm making up for it

Would add that we are renting and were planning on buying in 2020 but my partner lost their job, now interest rates are too high

Anonymous wrote:

Anonymous wrote:I mean my purchase patterns aren’t changing because most of them are pretty necessary (food, daycare, rent, …). I suppose I could insist on cheaper/boringer groceries but I frankly don’t have the energy. I keep paying because I have savings and am planning to move to a lower cost of living areas where hopefully my salary will stretch further.

OP here. I agree but I’m more talking about things like new cars, travel, fancy home renos. Full steam ahead it seems for so many people around me. I shouldn’t be shocked but I am.

We have a HHI of about 150K and I would say we are spending more than before. I feel like we lost some time for experiences with our 11 year old so I'm making up for it

Anonymous wrote:I mean my purchase patterns aren’t changing because most of them are pretty necessary (food, daycare, rent, …). I suppose I could insist on cheaper/boringer groceries but I frankly don’t have the energy. I keep paying because I have savings and am planning to move to a lower cost of living areas where hopefully my salary will stretch further.

OP here. I agree but I’m more talking about things like new cars, travel, fancy home renos. Full steam ahead it seems for so many people around me. I shouldn’t be shocked but I am.

I think it's a combination of things:

1. People's habits become ingrained so they don't stop eating out or buying new stuff even when their disposable income drops.
2. People with mortgages prior to the pandemic (or paid off homes ) are in much better shape than everyone else. UMC people in this category don't really need to cut back.
3. The wealthy get a lot of free stuff due to their business and personal connections. Then regular shmoes pay for goods and services to be like the wealthy. But they're not really like the wealthy because the shmoes are paying so the wealthy don't have to.

I mean my purchase patterns aren’t changing because most of them are pretty necessary (food, daycare, rent, …). I suppose I could insist on cheaper/boringer groceries but I frankly don’t have the energy. I keep paying because I have savings and am planning to move to a lower cost of living areas where hopefully my salary will stretch further.

It’s like saying why are bankers not affected by the banking crisis.

They cause the inflation… they pay lower wages and charge higher prices.

Because they might have saved a lot during Covid or received an inheritance. Because they cut other corners. Because they are tired of Covid and just decided to spend $$$ for a trip of a lifetime. Because they use credit cards.

Even when you are close to people, you may not see where they splurge and economize.

Anonymous wrote:Rich people aren’t affected by inflation

Said by someone who isn't rich.

Fixed mortgages. That’s it. Personal inflation for homeowners is minimal.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Because they still have the money. Or they have credit cards with limits that allow them to pretend they have the money.

Nobody rich carries credit card debt.

No, because they wouldn’t need to now would they? People who are MC/UMC and keeping up with the Joneses do.

We are UMC and haven’t carried a balance in 10 years.

If you read the “If you classify yourself as UMC” thread, there are a LOT of rich people (who call themselves UMC) out there. Higher costs just mean lower savings for them.

I was just reading an article about a young woman working at Target and said she sees others doing $500 runs and she doesn't even make $500 every two weeks. I felt so sorry for her. She doesn't realize though that the amount could be a monthly stock up. Or that kids cost a lot especially in the food category. And it can't be helped right now. Shit is getting more expensive. WEEKLY. It's hard for a lot of people. Throw in gas and the struggle becomes real. And scary.
My adult kids wouldn't make it if we didn't help. The kids need shoes and clothes. With both adults working they still need help.
Our extended family would not make it if we didn't help. There is no extra.
That's the main reason we took SS early. Our monthly drawdown covers our expenses. The rest is for them.
The ones that have have. The ones that don't need help.

For is the savings fro having refinanced a couple years ago outweighs a lot of the higher costs associated with inflation (although this will be less true when we have to get a new car)