The Cost of Living

With the price of oil plummeting, I'm expecting to see other costs destabilize.  At this point and time, I'm not even sure what that really means or could possibly entail, but without the gold or silver standard, and so many global currencies; oil is really the global standard.  If the American dollar now has more buying power regarding a barrel of oil, I think that usually means deflation or inflation is coming.  I think both are on the horizon.  Economy experts have forecasted an improved 2015 for America's economy, but much of that is based upon oil and gas, while the price of oil has dropped dramatically.

I believe we're going to see another drop in the value of tangible assets, or at least the selling power of them and I think we're going to see an increase in the cost of living.  The Great Repression of 2008 brought about a real change in the economic climate of this country, with a severe drop in the standard of living for the Middle Class.  In going back to campaign rhetoric of our current leader, he frequently used the term "working class" in reference to what used to be the Middle Class.

In recent conversations, I've experienced not sticker shock, but what I would call "Cost of Living Shock."  I truly had not realized how far out of the economic loop this homesteading lifestyle had taken me.  My daughter started it, last year when we were talking about her sister's move.  I had said something about them being here for a month and giving me $200.00.  My daughter just looked at me over her wine glass and asked, "Two hundred dollars, what's that even begin to cover?"  I then stopped and thought about how much my kids talk about their cost of living, especially the one who had given $200.00 . . . so I certainly quit feeling guilty for having taken almost enough money to cover the cost of my internet overage through their stay.  I have now heard others speak of their income, their monthly expenses, and in many cases, their continued need for assistance.

Obviously, some of the cost of living has to do with money management.  I choose to be frugal to a point, but really, I buy what I need and usually what I want.  I just don't require a lot of high tech gadgetry and I still prefer investments to just purchases.  I don't know that I'll be here in 40 years, but if America is still in business, some of the things I've implemented here in Goshen could still be operational and of course, much of the homesteading lifestyle is perpetual.  As others describe their income, I'm shocked.  I've been out of the mainstream workforce for so long, I had no idea people actually complained about the level of income I'm hearing about.  I can't imagine how they find a way to be broke with that much income!

Our economy did not recover and it's shaky.  We can't keep mismanaging our income and expect G-d, government, or charity to continue to provide.  Wealth does not begin in the wallet, it begins in the way we think and manage.