After the last 5 or 6 trips to the grocery store, my wife has seemed quite flustered.  She kept commenting on how expensive things were getting.  Without buying things like meat or chicken, our grocery bill would still be over $120 for a single week.  Add in meat and chicken and things get really ugly.  If we had 6 kids it wouldn’t be a concern – but we only have one.  Week after week, month after month, the value of a dollar is becoming less and less.  Regular prices keep climbing, and sales aren’t quite as good as they used to be. 

Nothing is immune to price increases, it seems.  Month after month our grocery bill gets higher…. even as we cut back on meat and other expensive items.  We’re not rich by any means, so it hurts.  I am very thankful that we aren’t in a worse position financially – I can imagine what some people are going through. 

It’s not going to get better anytime soon

Generally, inflation is followed by salary increases to match the cost of living.  That’s the idea anyway.   However, we’ve faced some pretty stiff inflation over the past few years, without the accompanying rise in wages.  Most of us are making about the same amount in dollars as we were a few years ago, but those same dollars buy less stuff.  That’s a pay cut, my friends, at least indirectly.  Until wages catch up ( if they do ), we’ll all need to tighten our belts a bit. 

For one, remember to keep investing.  Even modest 7 or 8% returns will make sure your money outpaces inflation.  If you like, diversify your cash a bit, so you’re not overexposed to the US dollar.  If you don’t take some action soon to fight inflation, it will become overwhelming.  Cut your spending, now.  Invest.  Buy metals.  Heck, even consider buying foreign currency.  Do your homework, but do it now, and make a decision.