How are you adapting?

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Azdunerat

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Just curious if I am the only one who has already begun dramatically changing their behavior in response to inflation. 
 

a couple examples, my wife and I would eat out 2-3 times a week during the initial stages of Covid but now we may eat out once a week if that. I mean come on 18.00 for a chipotle burrito and a drink is insane. The last time I took my family (wife and three daughters) to Red Robin the bill was almost 100.00. My wife and I make a very good income and we can’t afford to eat out so we buy most of our meat at Costco and try to keep the home cooked meals better than we got at restaurants. 
 

Also instead of quick weekend trips we are now planning longer stays wherever we are going. Last summer we made 4-5 weekend get always to San Diego and we aren’t doing a single one this year. Instead we are taking the hauler to camp on the coast next spring break for a week. 
 

What I keep asking myself is if we make the kind of money we do and are cutting back this hard what are other people doing? And how long before this overinflated economy retracts or worse implodes. 

 
If everyone stops spending the money coming will crash. Spend it like you can make more!!!!

 
We have been pulling back on going out for food for 6 months now, it is the easiest way to save some money.  We also sit back every 6 months and see where we can cut (we have been doing this for 20 years), time to cut some monthly subscriptions ..............reduce that monthly nut is always the goal.  

 
We have been reigning in on all unnecessary purchases.  There are a lot of 'do you really need it?' conversations in my house......We used to get an Amazon delivery (or three) every single day.  Now it is maybe two packages a week and those tend to be household necessities, cleaning products, etc. that we cannot find in local stores.  Also buying more groceries at Walmart.

 
I retired at 43.  I learned quickly you have to budget your money and honestly, I don't go crazy spending money.  I aim for a lifestyle.  Since retiring, I make A LOT more and have a lot more now.  I also went back to work so really, inflation hasn't stopped or slowed me down.  It's just my regular practice of do I need it or not, or how bad do I want it.

 
Not pulling back but I am watching what I spend my money on a lot closer. Trying to avoid impulse buys, stupid upgrades and extras to orders.  

 
I was seriously planning on retiring in September. And the way it’s going with everything it’s just not going to happen.  I’ve cut back on a lot of stuff but the wife is a little slower on getting on the boat.  

 
Just got back from taking the family on a work trip with me and had to eat out for the whole family for every meal.  Holy balls my wallet is smoking.  $70 to feed a family of 4 at Chipotle...  WTF.  Always cutting back where we can and don't eat out a huge amount, so this was a rude surprise. 

Raised by parents who grew up dirt poor yet managed to retire very well.  Cost:benefit is always considered.

"TURN OFF THE LIGHTS!"  :biggrin:

 
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I'm trying to get money out of my hands (and into tangible assets) as fast as I can. ..

Friend of mine has a gorgeous house in San Clemente. He put $800k over the last 2 years remodeling it. He would fret to me how much it costs.. I told him yesterday.. DUDE!.. you made out. .. cause cost of labor and materials, that remodel would have cost you $1.3M today. 

So as I make purchases of vehicles, laptop (bought for my 16 year old last night).. I don't sweat it. I'd rather buy that laptop now (that we were going to buy before her Jr. HS year anyway) TODAY at what seems like a high price than in 5 months (so long as I have the money to do so). 

Everyone knows true inflation isn't 8% or whatever the government says it is. I think it's 15%+... so if I'm right here's what happens to your $100k sitting in the bank (it's spending power).

15% inflation example

$100,000 Today

$ 85,000  Year 1

$ 72,250  Year 2

$ 61,412   Year 3

$ 52,200  Year 4

So think about it.. your account still SHOWS $100k, cause you have $100k in there, but it's spending power was cut in HALF in just 4 years!

I keep buying stocks and will continue to do so... Put in a bundle Sept. 2021 (so I am clobbered there) and tossed in the same amount to Schwab end of May.. almost dumped it all into the market, but glad I listened to my old man and I'm putting in 1/6th of it into the market on the 1st of every month for the balance of the year.

Hope to keep doing that.. I'd really like to grab some real-estate (not in CA) .. probably in 2/3 years. Also, spending a ton on more and more 'prep' stuff. Need a freezer for meat in the garage.. getting 4 packs of Rugged 'hand helds' for all my like minded neighbors, etc... 

Sh-t is coming... so ... Stay Frosty!

tumblr_oq3mlspzbD1qdhps7o5_r1_250.gifv


My $.02

abc

 
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Diversify - some cash, some stocks, some assets.  If we go into a recessions, stocks and assets won't be worth more -but cash will be.  If we do not go into a recession and inflation continues, stock / assets worth more, cash less. 

I've tried to always do this - so nothing really changing for me - other than, trying to figure out if I should have more of one of the 3 noted above and if gambling on an unknown outcome is worth it.

 
Problem is, most people who spend recklessly to begin with, never throttle back until it's too late. 

tough times are coming, plan accordingly.  Also lots of opportunity ahead for those who have planned accordingly 

I've always watched our spending to begin with, was never a fan of debt.... so we are still living life the way we have, but definitely paying attention to a it a little closer.  Less zipping around town for errands on a whim, and try to group it all into one trip.  Our girls play club soccer, so we usually have to eat out a lot during tournaments, but thankfully our go to spot is in n out... which is still the best value out there. Used to stop at Habit a lot, but that place has gone up in price, and down in quality so fast.  Hoping fuel prices taper down before desert season... but if not, still plan on doing the same number of trips, but will try to extend them all by a few days... since the RV will burn the same amount whether its a 3 day trip or 5 day trip.

 
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Wife keeps getting raises at work and I'm due for a bump next month.  

So far we're not getting ruined.  We'll see what all this looks like after summer.

As far as Glamis, still planning on some more summer trips and since it's the only thing my daughter's want to do, I plan to go least as much as last year.   We're only 2 hours away so it's not an epic drive.

 
First we shoot all the realtors, 

Houses in a neighbor that has been selling for 200 to 300k for the past 15 years dont become 1.2M overnight.  

Also, why is reg gas so high when Jet A is still $6.  Even 110 LL is still $7

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Oh it's already begun. I went through my local IN-N-OUT drive through yesterday there was less than 5 cars in there. Usually at any given time or day, there would be a line of cars way out the 2 sides of the building running back into public streets. 

 
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