# What Are Your Plans To Fight Inflation Over The Long Term?



## OneEyedDiva (May 31, 2021)

I'm "piggy backing" off @JonDouglas's recent post but I've actually been meaning to start this thread for a couple of weeks.  Have you considered how inflation will impact your budget? What specific things will you do to counteract its effects? I….
~Eat out much less
~Rarely buy clothes; when I do it’s from my favorite consignment shop (I've found new garments there).
~Cut cable and landline phone; just paying for internet, streaming and cell phone.
~Eat a lot of meatless meals (never was much of a meat eater).
~Don’t have car expenses (I read that probably saves over $9,500 a year)
~Shop at Dollar Tree for some items
~Buy many items in bulk at Costco; always shop sales at supermarkets
~Take full advantage of cash back rewards, including keeping track of bonus category months for each card


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## Keesha (May 31, 2021)

- growing our own vegetables and either canning them or storing them in our cold room  
- catching more fish and freezing it 
- buying extra things on sale to store for later by buying in bulk
- putting more money in RSP’s so we get tax rebates
- investing the rest
- maybe get a reverse mortgage if we ever need extra
- check for deals


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## Murrmurr (May 31, 2021)

I might have to quit smoking. Or die from it really soon. Or smoke something else. Or vape?
My budget's already pretty tight. I might have to start transferring money from savings every month.


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## drifter (May 31, 2021)

I’m just going to duke it out like I do with every thing else. Maybe buy less, or lower quality, substitute, or do with out.


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## Aunt Bea (May 31, 2021)

You can only cut your expenses to the bone once.  Then the cost of the bone starts to increase. 

I will probably rob Peter to pay Paul by continuing to tighten up on the necessities so I can splurge on  a few little luxuries.


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## Mr. Ed (May 31, 2021)

I will do my part in eliminating inflation by reducing personal consumption via death


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## JonDouglas (May 31, 2021)

Murrmurr said:


> I might have to quit smoking. Or die from it really soon. Or smoke something else. Or vape?
> My budget's already pretty tight. I might have to start transferring money from savings every month.


I can't speak for everyone, but I think we'd love to see you quit smoking and, most probably, live longer.  Cold turkey is the (just git er done) way to go, BTW.  Don't ask me how I know.


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## JonDouglas (May 31, 2021)

We will cut our travel. I already squeeze the meal budget by getting multiple meals out of cheap cuts of meat made 5-star tasty.  There's no need for more clothes and nothing much else we need to buy, having put money into where we live several years ago.


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## Murrmurr (May 31, 2021)

JonDouglas said:


> I can't speak for everyone, but I think we'd love to see you quit smoking and, most probably, live longer.  Cold turkey is the (just git er done) way to go, BTW.  *Don't ask me how I know*.


Congratulations, Jon


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## Ruthanne (May 31, 2021)

I guess I just ignore it like everything else I can do little about.


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## Nathan (May 31, 2021)

OneEyedDiva said:


> What Are Your Plans To Fight Inflation Over The Long Term?


I'm not sure how long term "long term" is, of course economists don't know either, so I guess I'm in good company.
Well, for sure I'm not buying any construction materials, especially wood products, prices have gone through the roof(so to speak).
Price always dictates[to me] whether or not I buy, and/or in what quantity.    Aside from that, I can't cut _discretionary spending_ much further than the level it is currently.


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## Nosy Bee-54 (May 31, 2021)

I plan to make no changes. When gas prices hit $4 under Bush 43, I did not change my driving habits. Seems to me that a lot of the inflationary talk is media driven and political. During the Great Recession, I didn't have to change my spending habits because I'm a minimalist. 

~Eat out much less ... I don't eat out by choice. I prefer home cooked meals.
~Rarely buy clothes; when I do it’s at my favorite consignment shop.. I only buy what's needed
~Cut cable and landline phone; just paying for internet, streaming and cell phone. Don't have cable, nor landline. Don't stream.
~Eat a lot of meatless meals (never was much of a meat eater). I eat 90% veggies, small pc of meat.
~Don’t have car expenses (I read that probably saves over $9,500 a year) ..  I get maintenance when due so my car can continue to treat me well.
~Shop at Dollar Tree for some items ... I avoid these type of stores. Just don't see the value.
~Buy many items in bulk at Costco .. I'm a member and like limited items as a single person.
~Take full advantage of cash back rewards, including keeping track of bonus category months for each card .. I take full advantage and use my cc for almost all purchases.


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## JonDouglas (May 31, 2021)

Mr. Ed said:


> I will do my part in eliminating inflation by reducing personal consumption via death


Suggest you wait a bit as the cost of that is likely to go up also.


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## Gaer (May 31, 2021)

Well, I'm boycotting China made products, so buying cheaper is not an option.
Since i have no husband to feed, I won't spend much on food.
i live pretty simply, and have no fear of living without things. 
I'm good.  
My goal is tobe independent of possessions.  i want to be possessed only by myself.


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## Jeweltea (May 31, 2021)

It depends on how long term we are discussing. Eventually we will get rid of one car. We have 2 that are paid for. When one goes, we will not replace it. Right now, we just take care of them so they hopefully will last. 

We will eventually travel less.


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## OneEyedDiva (May 31, 2021)

Nosy Bee-54 said:


> I plan to make no changes. When gas prices hit $4 under Bush 43, I did not change my driving habits. Seems to me that a lot of the inflationary talk is media driven and political. During the Great Recession, I didn't have to change my spending habits because I'm a minimalist.
> 
> ~Eat out much less ... I don't eat out by choice. I prefer home cooked meals.
> ~Rarely buy clothes; when I do it’s at my favorite consignment shop.. I only buy what's needed
> ...


It seems your minimalism is working for you. That's great. Of Dollar Tree you said_ :I avoid these type of stores. Just don't see the value." _Bee...Everything at Dollar Tree is a dollar or two for a dollar. I very much see the value. I'd rather get nice greeting cards 2 for $1 than pay $4.99 each like the ones I see at other places that sell them. I have 5 grandchildren who had graduations and of course, birthdays. My BFF and I always send each other cards too. Some of DT's card are $1 each. I got reading glasses and sunglasses there for $1 each. Walgreens may charge $10 or more. I started buying foaming bathroom cleaner at DT. I was paying $3 or more for a can of Dow then realized that they removed the claim that it disinfects. So now I've saved at least $1 per can (DT's brand comes in slightly smaller cans). Same kind of savings for ammonia, other cleaning products and light bulbs, just to name a few items.  I've gotten some very cute, well made knee socks there too. Amazon wanted $9 for similar socks. I got clear shower curtain liners, decent quality. Other stores wanted $5 and up.


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## Lewkat (May 31, 2021)

I've become quite frugal in my old age.  I am recognizing my weaknesses, (shoes), and I know full well, I may only wear them once, so no more of that.  Just this sort of thing has already saved me bucks.


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## squatting dog (May 31, 2021)

Got my food supply trained to come close.


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## fmdog44 (May 31, 2021)

I just looked at the rate and it was 1.4 in January and is now 4.16. Bank interest for savings is 0.57 tops last time I checked.


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## mathjak107 (Jun 2, 2021)

fmdog44 said:


> I just looked at the rate and it was 1.4 in January and is now 4.16. Bank interest for savings is 0.57 tops last time I checked.


Which is why cash is trash


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## JustBonee (Jun 2, 2021)

Thinking twice before I buy  anything these days ...   just me and my doggy.  
We can cut back plenty,   and have been for the past  couple of months.


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## Uptosnuff (Jun 8, 2021)

Remember to take advantage of your senior discounts.  On everything.  The trick is to remember to ask for them.


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## HoneyNut (Jun 8, 2021)

Might put some of my retirement money into these things I had never heard of until recently (because until retirement started to loom ahead of me I'm afraid I didn't pay any attention to investments).  I wonder though if the retirement year type of fund that my money is in might already have a portion in TIPs?  I watched a YouTube video about some university endowment fund that has performed well, and the video said they have 15% of the money invested in these:

*"Treasury Inflation*-*Protected Securities*, or *TIPS*, provide *protection* against *inflation*. The principal of a *TIPS* increases with *inflation* and decreases with deflation, as measured by the Consumer Price Index. When a *TIPS* matures, you are paid the adjusted principal or original principal, whichever is greater."


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## Remy (Jun 8, 2021)

That's a good question. If I can find a mobile in a park that works for me, I may be OK.

I shop at thrift stores. Books, clothes, dishes, kitchen items, decor items. 

I don't like to eat out. Haven't eaten meat in 30 years, eat plant based. I love carbs. I can make dinner out of bread if that's all I have.

I don't know. I just hope I can make it.


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## Alligatorob (Jun 8, 2021)

My inflation fighting "plan" is to spend what money I have whist it is still worth something, and maybe not live too long...


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## Uptosnuff (Jul 6, 2021)

@OneEyedDiva _"I'd rather get nice greeting cards 2 for $1 than pay $4.99 each like the ones I see at other places that sell them. "_

Yes, me too.  And the greeting cards at the Dollar Tree are from American Greeting, not Hallmark.  They are made in the U.S.  At least, they used to be.  I haven't really looked lately.


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## OneEyedDiva (Jul 6, 2021)

Uptosnuff said:


> @OneEyedDiva _"I'd rather get nice greeting cards 2 for $1 than pay $4.99 each like the ones I see at other places that sell them. "_
> 
> Yes, me too.  And the greeting cards at the Dollar Tree are from American Greeting, not Hallmark.  They are made in the U.S.  At least, they used to be.  I haven't really looked lately.


I bought a birthday card from Dollar Tree for my BFF and she loved it. She said it read like it was made especially for her. Plus it had glitter...I love glittery cards.    Same with the one I gave my granddaughter. They have some really beautiful cards.


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## Chet (Jul 6, 2021)

Considering how much time that I probably have left with savings plus a little income, I should be OK. I've always been a cheapskate anyway.


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## fmdog44 (Jul 7, 2021)

You can only cut so much. Most retired people don't need inflation to start them on budgeting. When a time has arrived permitting us to leave the house travel and lodging are out of control.


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## mathjak107 (Jul 7, 2021)

Seniors with some discretionary spending dollars tend to feel less inflation over time .

that is because once we get through the early go go years of retirement when spending ramps up , it tends to fall off a cliff in the slow go years ..it does not ramp up again until the no go years when health care costs rise ..overall much of what seniors no longer do or buy helps defray costs in what when up .

studies by sun life and also ty bernke show the same smile shaped pattern of spending


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## Uptosnuff (Jul 9, 2021)

OneEyedDiva said:


> I'm "piggy backing" off @JonDouglas's recent post but I've actually been meaning to start this thread for a couple of weeks.  Have you considered how inflation will impact your budget? What specific things will you do to counteract its effects? I….
> ~Eat out much less
> ~Rarely buy clothes; when I do it’s from my favorite consignment shop (I've found new garments there).
> ~Cut cable and landline phone; just paying for internet, streaming and cell phone.
> ...


I don't know if meat really adds that much expense to a meal.  I have always done what me ol' mum did - I end up using the meat for 2 or 3 meals.  Ex. bake a whole chicken.  Left overs are for the next day's meal.  Chicken and rice, chicken and noodles, chicken salad etc.  When I can stretch meat for 2 or 3 meals, I'd say that's a good way to economize.


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## Cameron (Jul 9, 2021)

I'm trying to convert some cash to useful real assets.  Like firewood I just ordered.  If its true inflation erodes over time the value of a unit of your currency you should be able to get more for your dollar (or whatever) today versus 3 yrs from now.   bought a new laptop a few weeks ago and ordering some farming equipment.   Steering some investments to real assets as well. commodities in general and staying away from the stocks that are tied to seemingly to speculation  (to me that would be something like Tesla)


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## mathjak107 (Jul 9, 2021)

I don’t buy individual stocks for my core portfolio …I own enough of the faang stocks and tesla through my funds ….

it was a great run but I reduced equities to about 35% , I hold only short term and intermediate term bonds , high yield bonds and I recently added 10% gold and commodities through etfs …


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## Cameron (Jul 9, 2021)

mathjak107 said:


> I don’t buy individual stocks for my core portfolio …I own enough of the faang stocks and tesla through my funds ….
> 
> it was a great run but I reduced equities to about 35% , I hold only short term and intermediate term bonds , high yield bonds and I recently added 10% gold and commodities through etfs …


Sounds great.  I like this strategy !   ETFs are a great way to get exposure and with a bit of precious metals for insurance


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## Don M. (Jul 9, 2021)

Inflation hasn't changed much for us...we just shop a bit more carefully, and buy the "store" brands more often.  We've cut back on our running around and casino visits, so we've actually added to our savings in the past year.  

Besides, you KNOW our government is going to give Seniors a more realistic rise in the SS COLA....Fat Chance!


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## Aunt Bea (Jul 9, 2021)

We all have our own personal inflation rate separate and apart from the numbers quoted by the government and the pundits on the evening news.

The other night I saw a news item that the average cost of a new automobile in the United States is at approx. $42,000.00.

That is more than I will probably spend on automobiles/transportation for the rest of my life.

It's the same with my rent and other day-to-day household expenses.

The only real wildcard for me is the cost of prescription drugs, medical care, and ultimately end-of-life care.

If inflation in those areas outpaces my income and my assets then I will have to rely on Medicaid and the kindness of strangers in my final years.


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## Lethe200 (Jul 10, 2021)

Already "baked" average inflation into our financial planning. Our CFP firm currently has us in 'balanced conservative' portfolio at 50-50 stocks/bonds, which varies only slightly depending on how/when they take profits to re-allocate. They take taxes into consideration so our distributions don't bump us up into the higher tax bracket(s).

We have no children and at this point, are not traveling as much - more due to the summer crowds than to disinclination. Expenses have gone up as we increased our homeowners/umbrella/quake insurance, plus our LTCi premiums are scheduled to increase in Nov 2021 and July 2022.

No need to stint on anything. We spend quite a lot on groceries/dining out (now that it's allowed again!) because food has always been a major interest for me.

Our medical costs are thankfully kept in line with using Kaiser HMO - all prescriptions cost us $10 co-pay, for example, and all emergency costs (including ambulance transport) are covered through a retiree benefit healthcare plan.

We have comprehensive LTCi policies issued through the state, with an ombudsman rep to handle claims. Should we manage to get to around age 85+, we'll look into dropping the unlimited benefit period. It'll depend on the state of our health at that time and what our CFP advises. So far our portfolio has grown even after taking distributions for the past 6 yrs, but one can't always count on that, LOL.

We have enough discretionary income to manage anything but runaway hyper-inflation. Our expenses, even with a 40% increase in overall cost of insurance, are just slightly over one-third our monthly retirement income.

11 yrs ago we budgeted so conservatively for retirement, we didn't include either my (small) pensions nor Social Security for either of us. We lived strictly on Spouse's pension, which is assignable to me 100% if he dies.

So we were actually shocked when we realized with taking the distributions (a continuation of my MIL's portfolio distributions, after her death 6 yrs ago), my SS and pensions, our income essentially doubled. Even our CFP was surprised! Spouse's inheritance of her portfolio and the above mentioned additions to our income, have allowed us to have a comfortable cushion.

Up to her death, we still managed a very comfortable lifestyle, but I had to be more careful to only schedule one major expense every 6-8 weeks or so, whether a trip or house maintenance/emergency.

We have been very, very, very fortunate, and we feel blessed. We have stepped up our charitable contributions substantially as a result.


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## Liberty (Jul 10, 2021)

Real inflation hits home when you must replace something you purchased years ago - a necessity - and then witness the difference in costs.

Know a guy that thinks anyone that buys a new car every 3 or 4 years is nuts...he has minimal full coverage insurance costs and has made money off his autos for many years now - buys them when the maximum depreciation has been attained, then repairs or "tinkers" a bit with them, drives them and holds them until they increase in value, at which time he usually sells them.  He has some neat classics!


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## Gary O' (Jul 10, 2021)

OneEyedDiva said:


> Of Dollar Tree you said_ :I avoid these type of stores. Just don't see the value." _Bee...Everything at Dollar Tree is a dollar or two for a dollar. I very much see the value. I'd rather get nice greeting cards 2 for $1 than pay $4.99 each like the ones I see at other places that sell them.


Yeah, I go thru safety glasses pretty fast (I do a lot of sawing)
The 'cheap' ones @ HD are over $8
Dollar Tree cannot be beat with some things
Their safety glasses are even better quality than HD

I buy their paper products too
and the R2 Gel pens

Oh, and their paint brushes (3 for a buck)
I use approx 10 a week on my avian abodes
waaaaay cheaper than the throw away chip brushes at HD


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## Gary O' (Jul 10, 2021)

What Are Your Plans To Fight Inflation Over The Long Term?​
Veggie garden
Fruit trees
Grapes

We'll dry or freeze most everything (canning gets expensive)
I built a solar food dryer

Most everything we do is cheap to free
We're great at entertaining ourselves

Like right now
I'll be in the pool
The kiddie pool


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## OneEyedDiva (Jul 10, 2021)

Aunt Bea said:


> We all have our own personal inflation rate separate and apart from the numbers quoted by the government and the pundits on the evening news.
> 
> The other night I saw a news item that the average cost of a new automobile in the United States is at approx. $42,000.00.
> 
> ...


Regarding your last sentence...I hope you never find yourself in that predicament Aunt Bea.  I remember I paid a little more than $23,000 for my first and last new vehicle in 1994. It was a Toyota Camry, allegedly with some extras.  Regarding your first sentence, you are right. Many factors may determine what the inflation rates are for people, including the areas they live in, their household expenses, their shopping habits and what type of insurance coverage they have. Our mortgage is paid here and carrying charges (HOA fees) hardly go up at all. We pay about 36% of what others pay in comparable apartments. So far this year, I'm spending about $25 less a month for food than last year.

My family told me even before COVID they wouldn't put me in a nursing home. After the terrible situations in nursing homes during COVID, I know they wouldn't now. Good thing Medicare, from what I read, is more open to covering at home care. I'm covered by Aetna Open Access Medicare through the state retiree benefits program. Aetna covers home health care by approved agencies 100% up to 35 hours a week. According to what two reps told me, at two different times, that's unlimited. My most expensive prescriptions (eye drops) are $18 for a three month supply. Most everything else is $5, all through my mail order plan. Local pharmacies, which I only use for emergency prescriptions, would cost more.


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## mathjak107 (Jul 11, 2021)

Alligatorob said:


> My inflation fighting "plan" is to spend what money I have whist it is still worth something, and maybe not live too long...


let us know how that works out for ya


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## flowerchild (Jul 11, 2021)

-I am trying to cut back at the grocers. But I do buy my meats at the organic market and veggies as well. I've limited the amount of food I cook so we don't waste. 3 lbs of burger, for example, yields 6 meals; 1 jar of sauce 2 meals. If I make a bigger dish I will freeze it for another meal.  I make my own chicken stock and beef stock. 
-Stuck buying staples though. T-paper, ouch, what and expense there. No getting around that one.
-I sew, so I don't buy a lot of clothes. I do clothing remaking for myself. That saves me a lot. Now that I'm retired I don't wear a lot of the clothes I had. Most all of it is now cut down for summer clothes. I buy from garage sales and second hand stores. I try not to buy China made stuff when I do buy for my hubs, but he doesn't need much per year.  I make my own purses as well.  Ladies purses are very expensive these days.
-Cable TV, ouch, I haven't let that go yet.
-Trying not to use the air conditioning too much this year. I'm not going to swelter though when it's hot, hot out. I'm not to freeze either so guess I'll be stuck with that bill as well.

With everything going up, SS income needs a raise. I didn't work all my life to live in poverty.


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## mathjak107 (Jul 11, 2021)

ss was never designed to be someones sole support . plus when colas goes up , medicare costs tend to rise too. so anyone living on just ss may need a plan b .

colas dont go up in a vacuum , and medicare costs tend to rise more than the rate of inflation .


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## terry123 (Jul 11, 2021)

JonDouglas said:


> I can't speak for everyone, but I think we'd love to see you quit smoking and, most probably, live longer.  Cold turkey is the (just git er done) way to go, BTW.  Don't ask me how I know.


When the doctor told my dad to quit he did and never looked back.  My mother struggled with it for months until she finally did.  I hate going to visit people that smoke. You smell it the moment you open the door and it cannot be covered up.  I am surprised you smoke Murr especially being around children.  Cold turkey is the way to go per my dad. I tried it once zillions of years ago and could not stand that taste in my mouth.  Could not stand kissing anybody that smoked either.


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