You will all be getting a check from the Federal Government in May or June that is part of the tax stimulus package. You can actually go to the IRS website (www.irs.gov) and do a calculation to determine how much you will get. If you do the calculation, have a copy of your recently filed federal tax forms available. Good luck.
I keep hearing how inflation is under control and estimates range from 2% to 5% per year. "My world" seems different. I pulled into the gas station this morning and the customer before me had put in slightly over 22 gallons of gas (must have been a Suburban) and the total bill came to $77. For me, that was sticker shock. Market statistics show gas prices being up $.75/gallon from one year ago. That is a 30% price hike. Hello! The argument is that gas only represents a small part of your total budget (6%). In my world I am spending over $1,000/year additionally on gasoline.
I can be lulled into believing that gasoline price increases are really insignificant. What is this? Independent truckers across the country are waging a "slowdown protest" because they are going broke with high diesel prices. My world says that freight rates are going to go up and be passed on though higher prices of goods that are hauled. Ah, I shouldn't be concerned because freight is such a small part of the price of goods. Yeah, right!
Then I hear that corn prices and the products they go into will increase 20-30% this year. We have learned how to convert corn into ethanol for gasoline and our government mandates using the ethanol. It has also been reported that farmers are going to plant 10% less corn this year because soybeans represent higher profit. Let me see! Now we have higher food prices and higher gas prices.
Have you checked your electric bill lately. It is increasing at least 8-10% per year and higher rate requests have been proposed. In my world, that is real money.
In my world, I am paying more for almost everything. I don't see that changing unless we have a really bad recession.
My advice Grasshoppers is manage your budget really well!
Maybe I just don't understand! Maybe "my world" isn't real.
Love,
Dad