Beating Broke

Personal Finance from the Broke Perspective

  • Home
  • About
  • We Recommend
  • Contact
  • Privacy Policy

Powered by Genesis

How High is Inflation

March 14, 2012 By Shane Ede 9 Comments

© by snowlepard

The commonly used rate of inflation, 3%-4%, is used in so many formulas for retirement, investing, and “cost-of-living” increases.  But, is that the right number?  A recent news story released by the American Institute for Economic Research claims that the real rate of inflation is closer to 8%.

I won’t pretend to understand all of the economic talk in that article.  What I do understand is that they are claiming to be using numbers that are more reflective of the average American’s spending habits.  More importantly, if their research is even partially correct, it means that the rate of inflation could be significantly higher for some parts of the populace.  Not only does this affect the available funds for saving and spending, it could affect the numbers that many people are using for estimated retirement needs.

The research is still fairly new, as it doesn’t appear that they have that much historical data to back up their claims.  But, they do present a strong argument for a change in what we assume inflation to be, and where we get that information from.

How would a 8% inflation rate affect your finances?

 

Shane Ede

I started this blog to share what I know and what I was learning about personal finance. Along the way I’ve met and found many blogging friends. Please feel free to connect with me on the Beating Broke accounts: Twitter and Facebook.

You can also connect with me personally at Novelnaut, Thatedeguy, Shane Ede, and my personal Twitter.

www.beatingbroke.com

Filed Under: economy Tagged With: cpi, economy, inflation, rate of inflation

The Great Recovery

July 22, 2011 By Shane Ede 13 Comments

TheGreatRecovery.comIt doesn’t take a genius to figure out that we (Americans in particular) are in a boatload of hurt, financially.  Take the outliers away, and we’re a nation (and world) floating up to our eyeballs in debt.  Here’s a test for those of you who commute to work.  On your way to work, or your way home, count how many payday loan shops, pawn shops, and quick cash shops you pass.

I have never hid the fact that I credit Dave Ramsey and his book, Total Money Makeover, with being one of the big catalysts in our financial turn around.  The guy is inspirational when it comes to money.  Not everyone thinks he’s all that, but the fact of the matter is that he’s helped thousands of people get control of their finances and turn their lives around.  Now, he’s setting his sights a bit higher.  On the nation.

He’s come up with this idea of a “Great Recovery“, where we take it upon ourselves to educate each other on the proper way to manage our money, and lead each other in the a more biblical usage of money.  He explains it a heck of a lot better than I ever will.  Go and watch the kickoff event he held for it last night.

I don’t know if we can pull it off, but shouldn’t we try?  I know that’s one of my purposes here, at Beating Broke.  I want to help you become better with your money.  Along the way, I know I’ve learned a few things myself.

 

Shane Ede

I started this blog to share what I know and what I was learning about personal finance. Along the way I’ve met and found many blogging friends. Please feel free to connect with me on the Beating Broke accounts: Twitter and Facebook.

You can also connect with me personally at Novelnaut, Thatedeguy, Shane Ede, and my personal Twitter.

www.beatingbroke.com

Filed Under: economy, Helpful Websites Tagged With: dave ramsey, economy, great recovery

What if Everyone Was a Frugaler?

June 15, 2011 By Shane Ede 16 Comments

What if everyone in the world was as frugal as the most frugal?  Inspired by conversation on the Early Retirement Extreme forums about the ethics of the Early Retirement Extreme lifestyle.  So, the beginning of that linked conversation (if you haven’t read it) is based on the premise that if everyone did as Jacob does and lived the ERE lifestyle, would the world collapse?  And, if so, doesn’t that indicate that the ERE lifestyle is not socially responsible (ethical)? Which, got me to thinking.  What if everyone was as frugal as most of the frugalers we know? What if frugal was normal?

I’m not talking about the people who hand wash their Mercedes, either.  When it really comes down to it, the ERE lifestyle is pretty similar to the frugaler lifestyle.  Each has their extremists.  So, what if everyone was frugal?

Would we all make our own shampoo?  Would we all have a sustainability garden?  Would we all coupon?  Would coupons still exist?

Pink Piggy BankIt’s an interesting question.  Many of the things we all see and do each day exist because a much larger section of the population use them far more regularly than we do.  Disneyworld, for instance, probably wouldn’t exist if it’s only customer base were frugalers.  What about those Mercedes cars?  Probably not in the U.S.  But, if you think about it, there wouldn’t be very many used cars available for purchase, since we’d all be busy driving them until the wheels fall off.  What would that do to the auto industry?  If all the people who buy a new car every year, or even every five years, stopped doing so?  You thought they needed a bailout a couple of years ago!  They’d really need one then.

We might see more local farms growing a larger variety of goods because more people are shopping at farmers markets and taking advantage of the Co-Op farms.  We might see less McMansions and more smaller houses with big yards and gardens.  We might see some pretty drastic changes in the pricing of some things.  Without all the willy-nilly spenders out there paying whatever the manufacturer asks for the product, you might see more reasonable pricing to get people to purchase a product.  We would likely see a return to a more craftsman foundation, much like the early retirement extreme lifestyle.  People might be interested in making things themselves if the market dynamic shifted that drastically towards the frugal side of things.

How do you see the world changing if everyone was as frugal as the most frugal?

photo credit: kenteegardin

Shane Ede

I started this blog to share what I know and what I was learning about personal finance. Along the way I’ve met and found many blogging friends. Please feel free to connect with me on the Beating Broke accounts: Twitter and Facebook.

You can also connect with me personally at Novelnaut, Thatedeguy, Shane Ede, and my personal Twitter.

www.beatingbroke.com

Filed Under: Consumerism, economy, Frugality, ShareMe Tagged With: early retirement extreme, economy, ere, ere lifestyle, frugal, frugaler, market

  • « Previous Page
  • 1
  • 2
  • 3
  • 4
  • 5
  • Next Page »
  • Facebook
  • Pinterest
  • RSS
  • Twitter

Improve Your Credit Score

Money Blogs

  • Celebrating Financial Freedom
  • Christian PF
  • Dual Income No Kids
  • Financial Panther
  • Gajizmo.com
  • Lazy Man and Money
  • Make Money Your Way
  • Money Talks News
  • My Personal Finance Journey
  • Personal Profitability
  • PF Blogs
  • Reach Financial Independence
  • So Over Debt
  • The Savvy Scot
  • Yes, I am Cheap

Categories

Disclaimer

Please note that Beating Broke has financial relationships with some of the merchants mentioned here. Beating Broke may be compensated if consumers choose to utilize the links located throughout the content on this site and generate sales for the said merchant.

Visit Our Advertisers

Need to change careers? Consider an Accounting Certificate Program from WTI.