How to Beat Inflation
@ElizabethWallace (12069)
United States
February 19, 2016 10:55am CST
Prices seem to be creeping upward, although the consumer price index used by the federal government to determine the cost of living increase social security recipients receive states the opposite. The cost of items they check has gone down. This is true for gasoline, certainly, but have they gone to the supermarket lately?
The amount of four of my fixed bills was increased this year. Each party referenced rising costs. I don’t believe it, but I am forced to pay. So I have decided to fight back. I was able to compensate for one of them fairly easily. My hairdresser increased the price by $10.00. So I am now going to have my hair cut every six weeks, instead of every five. I even saved $1.00 by making this change.
My monthly rent was increased by $50.00. I am no longer going to pay for minor fixes on my own. I was doing this in order to be a good tenant. But I know that the costs to the landlord have not increased. In fact, I believe that they have decreased somewhat. This will not make up for the entire increase of $600, but it will lower the total.
My television comes via DirecTV. It is either that or Cox Cable (which costs more). Since I live in the hills, there are not many options. Antennas will not work, and are not allowed here anyway. DirecTV was just bought by AT&T. I knew that would mean trouble. They raised their rates by $2.00 per month. This is at a time when they are having trouble finding customers because lots of people are viewing television on their computers now. Evidently, they do not value their clientele. I will call and negotiate with them. I’m not into streaming yet. Convenience is tops on my list, and I see no way to automate viewing if streaming instead of using a DVR.
My water/sewer rates just went up too. Their excuse is that the sewer company needs to work on their infrastructure. They say they have not had a rate increase in years, but good grief, their increase was about 30%. I cannot do without water or sewer services, so the only thing I can do to compensate is reduce the cost of other utilities. I did this recently by changing my landline from AT&T to Verizon. Doing so saved me about the same amount as this increase.
How do you react to rising prices on fixed expenses?
19 people like this
21 responses
@fishtiger58 (29819)
• Momence, Illinois
19 Feb 16
Certain things you just cannot do without. Water and sewer are going up here too in the next few month. I think they said 7 dollars so that's not to awful bad. We have netflix and free tv so that's not bad. Grocery's are what went up the most for us. But with what we saved deleting some bills like the tv and the landline we can easily afford the food. My husband did get a raise in his pension of 900 dollars a year. We were surprised.
4 people like this
@ElizabethWallace (12069)
• United States
20 Feb 16
@fishtiger58 It is important to find out, since it will have an effect later on in your life.
1 person likes this
@ElizabethWallace (12069)
• United States
20 Feb 16
I get a 2% pension increase each year, but it is based on my first pension check and does not compound. This means that what is a nice amount now, will dwindle as time goes on. Higher prices, therefore, will make a bigger difference too.
3 people like this
@fishtiger58 (29819)
• Momence, Illinois
20 Feb 16
@ElizabethWallace I'm not sure how my husband's is calculated.
1 person likes this
@Tampa_girl7 (54715)
• United States
19 Feb 16
The grocery store prices have certainly increased and our garbage and telephone bills went up. I have already cut corners in every way I know to. We will have to muddle through.
3 people like this
@ElizabethWallace (12069)
• United States
19 Feb 16
At least your hubby is still working. Some places are giving raises. Hopefully that will happen for him.
2 people like this
@Marcyaz (35316)
• United States
19 Feb 16
We went to streaming because of the rising prices of Cox Cable and now we are saving so much and we did buy the antenna thingee to watch regular channels so we have so much more now and are paying less. The gasoline seems to go down and then up so you never know just how much you are saving or even if you are saving anythng at all. As to Social Security and no increase this year it really makes me angry as I am sure people working in government will get their increase.
2 people like this
@ElizabethWallace (12069)
• United States
20 Feb 16
If Elizabeth Warren gets her way, social security recipients will get a one time check to compensate for this stupid withholding of the 2% increase. For me, it is only $2.00, but for others, it is significant.
@Marcyaz (35316)
• United States
20 Feb 16
@ElizabethWallace
It is in the house and is just a flat piece.
1 person likes this
@ElizabethWallace (12069)
• United States
20 Feb 16
By the way, is your antenna thingee inside or on the roof?
1 person likes this
@Drosophila (16568)
• Ireland
20 Feb 16
Things have been relatively stable in Ireland.. we're lucky just yet.
2 people like this
@Drosophila (16568)
• Ireland
20 Feb 16
@ElizabethWallace am sure it's just a matter of time though..
but I see things are changing like "cook in" nights are now exceeding restaurant outtings
1 person likes this
@ElizabethWallace (12069)
• United States
20 Feb 16
That is fabulous. Good luck.
1 person likes this
@paigea (36143)
• Canada
19 Feb 16
I have always stretched out hair cuts until well past their prime. I don't enjoy that savings. My best deal is when I get a mystery shop hair cut.
I am thinking of getting rid of the landline. I already removed long distance from it. Hubby thinks we should keep it so far though just for emergencies. Phone line works when power is out and emergency services can find you if you call on a landline?
We have streamed shows and watched them on the TV. Just needed to buy a special cord to go from the laptop to the TV. And we could watch it exactly when we wanted to. We found that used all our internet though. So, we have decided not to do that and to stick with the cheapest internet package.
We get a lot of TV series from the library.
Hubby is not ready to give up his big sports package on our satellite TV service. I will try phoning like I did a year ago and see if there is a "deal" for long term customers. I will also try and reduce our package. We did reduce it slightly not too long ago. Very slightly.
I have been making a much bigger effort to use the garden produce in our freezer this winter. And only buying produce we are going to use quickly so we are throwing less out.
So, really I have not accomplished much savings so far.
2 people like this
@jillybean1222 (6406)
•
20 Feb 16
I rarely get haircuts! That's why i keep longer hair. :-) I can't afford a short haircut.
2 people like this
@ElizabethWallace (12069)
• United States
20 Feb 16
Not having an increase amounts to a savings the way things are going. Good luck.
1 person likes this
@paigea (36143)
• Canada
20 Feb 16
@jillybean1222 I used to keep my hair longer too. And my girls' hair. And that was part of the reason for it. Now I just don't like long gray hair.
1 person likes this
@AnneEJ (4917)
• Dollard-Des-Ormeaux, Quebec
19 Feb 16
Everything is going up here in Canada as well. Heard on the radio this morning that vegetables had risen 18% in the past year and fruit is almost as bad. I watch for specials on these items and don't buy the ones that are too expensive. I don't have TV, but I know my phone, internet, and electricity have gone up a lot. My rent only increased $12 so that wasn't too bad.
2 people like this
@jillybean1222 (6406)
•
20 Feb 16
@ElizabethWallace So far, i haven't learned to garden in a way that saves me money... I've put more money into it than I have reaped. I'll try again this year.
1 person likes this
@ElizabethWallace (12069)
• United States
20 Feb 16
@jillybean1222 I think it depends upon the size and success of your garden. I stopped when I realized that I was pouring lots of water into my plants, but reaping very little. It is cheaper to buy at Trader Joe's.
@ElizabethWallace (12069)
• United States
20 Feb 16
Anyone who has the space and water, should plant a vegetable garden. If they only have a little space, they should use the Square Foot Gardening Method.
1 person likes this
@ElizabethWallace (12069)
• United States
20 Feb 16
That's great. My gas and electric are much lower now than they were, so is the gasoline for my car. I used to commute and spent over $300 per month, but now it's like $40 or so. Still, it's the technology that ticks me off. It's all way over priced.
1 person likes this
@ElizabethWallace (12069)
• United States
20 Feb 16
Capitalism is not the problem. It is the collecting of wealth in the hands of too few that is to blame.
1 person likes this
@BelleStarr (61463)
• United States
21 Feb 16
There is not a lot I can do in most cases. I did turn off the water and cable at the lake house in January and I will turn off the water when I leave Florida but other expenses I have no control over and just have to bite the bullet.
1 person likes this
@BelleStarr (61463)
• United States
21 Feb 16
@ElizabethWallace It is hard to tell since we still need to heat our home and this was a warm winter in the northeast. It does make our life better however since my husband is very sensitive to cold these days.
1 person likes this
@ElizabethWallace (12069)
• United States
21 Feb 16
Does living in two places save you money? It probably does, since you are not in the place where your utilities would be high if you were there that season.
1 person likes this
@ElizabethWallace (12069)
• United States
21 Feb 16
@BelleStarr If I could find two places that are as nice as where I live now, and the weather was better on opposite times of the year, I would do this too.
1 person likes this
@garymarsh6 (24005)
• United Kingdom
19 Feb 16
We have price comparison sites here in the UK which are really handy. I checked out a grocery shop once. The differences in the prices between shops was earth shattering. Saving over £120 ($180) on buying branded identical items in the shops. Some people have more sense than money. I am quite happy to shop in the cheaper one for the same things!
2 people like this
@ElizabethWallace (12069)
• United States
20 Feb 16
Me too. I save quite a bit by shopping online. This way, I usually buy staples when they are on sale.
@moffittjc (128835)
• Gainesville, Florida
21 Feb 16
In the last five years, we have not gotten anything higher than a 2% raise at work. This year it was a measly 1.25%. To make matters worse, our health insurance costs have been going up anywhere from 5-8% each year, so basically my take-home pay has been going down for the past five years. Plus, like you said, costs of our bills continue to go up. If things get too tight, I can always cut my cable bill.
1 person likes this
@ElizabethWallace (12069)
• United States
21 Feb 16
All of this is due to the money in most businesses going to the top. Their raises have been massive. That is where all the cash is now. People think this is a myth, but they forget they haven't seen a raise lately. That's the proof right there.
@moffittjc (128835)
• Gainesville, Florida
21 Feb 16
@ElizabethWallace In my organization, I am one of the people at the top! lol
However, I work for the government, so it is a completely different situation! But you are correct, CEO's, Executive Directors, and Presidents keep getting richer and richer while the workers suffer. Another part of the problem is shareholders. They continue to demand unsustainable profit margins, and so companies have to screw their workers out of decent pay just in order to maintain their bottom line dictated by the shareholders.
1 person likes this
@ElizabethWallace (12069)
• United States
21 Feb 16
@moffittjc They don't realize that the people who usually do the buying of all of these products are the middle class who are now hurting. High profits can only be sustained when there are people with disposable income. The 1% cannot buy enough to replace the entire middle class.
@DeborahDiane (40846)
• Laguna Woods, California
20 Feb 16
Our landlord had not raised our rent in six years. When the lease comes up this summer, my husband and I wonder if that will change, since we are sure the owner's property taxes and HOA dues have gone up. I find myself wondering if this will be the year that our rent goes up. We'll see.
2 people like this
@ElizabethWallace (12069)
• United States
20 Feb 16
You have a good landlord then. Mine waited only two years. He really doesn't get it at all. He complains about anything that costs money, but says that they are very happy I am here taking good care of their house. He does not understand that keeping me happy is as important as the reverse.
1 person likes this
@DianneN (254926)
• United States
20 Feb 16
@ElizabethWallace He was a principal, then chairman of the Special Ed. and Reading departments of a university. He also developed and ran programs in a couple of states, set up special programs at a university in Rhode Island, and was acting dean. He began the first special ed program ever in a city when he first started his career and became President of the teacher's association.
1 person likes this
@ElizabethWallace (12069)
• United States
20 Feb 16
I know you taught, but what did your hubby do when he worked?
1 person likes this
@ElizabethWallace (12069)
• United States
20 Feb 16
@DianneN Thanks. People who were teachers and then moved into administration often retired with really nice pensions. My ex's pension is almost twice mine. He ended his career as a district level administrator.
1 person likes this
@JohnRoberts (109841)
• Los Angeles, California
19 Feb 16
You very accurately described the current state of affairs. How can tighten the belt on a fixed income? It simply means doing without. We rarely eat beef or ground meat now because of soaring prices and seemingly eat chicken every day because it's much cheaper. We have a store called the 99 cent store and that where we get all sundries, many food items etc. You find ways to eat less expensive. As to cable bill, we have DirectTV and cut the bill to the bottom line. Switched to cheaper phone bill by taking a minute limit package. You have to change lifestyle and alter habits and do without to survive. It requires effort.
2 people like this
@ElizabethWallace (12069)
• United States
20 Feb 16
I have the lowest DirecTV package too, but it is absurdly high in cost. I am living in a very expensive area. If it ever becomes difficult to keep my same lifestyle due to costs, I can always move to a cheaper neighborhood. Until that happens, I'll make little cuts where I can. the air is too good here to move away.
@Marilynda1225 (91076)
• United States
20 Feb 16
I've had similar increases too and moan & groan about trying to find a way to offset the increases without additional income. Usually I have to cut back even more in the supermarket which seems like the only flexible expense I have.
1 person likes this
@ElizabethWallace (12069)
• United States
21 Feb 16
If you can grow some of your own vegetables, that will help. They taste better anyway.
@jillybean1222 (6406)
•
20 Feb 16
sound like you have very wisely figured out how to make up for these rising costs! it's hard to make many changes here. the biggest area i can change is my groceries.
1 person likes this
@ElizabethWallace (12069)
• United States
20 Feb 16
I am careful, but do not focus too much on the cost of food. It is a necessity and part of making life worthwhile. There is only one of me, and using the freezer helps to reduce costs.
1 person likes this
@JudyEv (382036)
• Rockingham, Australia
20 Feb 16
We are in the process of costing the benefits of adding solar panels (we already have solar hot water) and feeding electricity back into the grid. Unfortunately it seems it would take some five years to reap the benefits and we may not be still in this place by that time. They all seem like pretty hefty increases for you.
1 person likes this
@ElizabethWallace (12069)
• United States
20 Feb 16
Yes, but only the rent increase is appropriate by percent. The others are smaller amounts but really out of line when considering that retired people only get a 2% increase at best.
2 people like this
@whiteream (8567)
• United States
23 Feb 16
you certainly have a great plan there. Yes, the prices are raising everywhere and it is very hard for people on a fixed income. I won't even go into my trouble with the raise in costs of everything.
@Dena91 (17039)
• United States
20 Feb 16
It's good to be vocal to whomever you pay monthly. One of the best ways we have saved money since Mike retired is on our groceries. He is very good at getting coupons and sales to match up. The other night we stopped to pick up a few things we needed before our stock up shopping trip. The bill came to just under $11. After coupons and sales we paid .06 cents!!!! We average around $40-50/weekly because of his hard work. We also dropped our land line phone as use our cells as our main ways to communicate. We switched about 6-7 years ago from Charter cable to DirecTV and our bill is still lower than when we had cable. We have been thinking about getting an antenna and seeing how we like that and perhaps in the future drop DirecTV too. It isn't easy living on a fixed income but with persistence and knowledge there are ways to save some money monthly. Have a blessed day.
1 person likes this
@ElizabethWallace (12069)
• United States
20 Feb 16
I think a landline is important in case of emergencies, but I'm a little paranoid that way.
1 person likes this
