How much do you worry about small increases?

[kgb18]

DH and I were talking about the price of gas the other day. We both agreed that when gas goes up 10 cents a gallon, we don't worry too much because it only adds $1.80 extra to the cost of a fill up. However, it starts to feel like a much bigger deal when you get six or 7 10 cent increases in a short amount of time because the little things - obviously - eventually add up.

I just read an article about how grocery prices are expected to increase a lot by 2015. They gave predictions of new prices. I figured for the staple things that we buy, it would add about $3.75 to our grocery bill each trip. I estimate that would add about $180 to our annual grocery bill. I'm not sure that sends me into a state of panic.

At what point do you start to worry about the small increases?

[mesquite77]

The first time we went through $3.00 gas, I had just bought a small piece of 3 small producing oil wells to protect against increases at the pump. It got to the point where we were making far more money in the oil wells that our total fillups.

Over the past 2 years we've increased our RE holdings by 3.5x as a play against inflation. Our variable household expenses are just about 25% of our wages. Am I excited that it costs $80 to full up my truck? No, but I think we've taken the worry away from small or moderate increases. I'm now working on the "not worrying" if it takes a wheel barrel full of cash to go grocery shopping.

[bobbysgirl]

I think we know being frugal means taking a look at the small things that make up the big picture. We save hundreds of dollars every year with this strategy. It makes sense to me that these savings could be lost when our needed expenditures nickel and dime us. I guess it comes down to for every action there is an opposite and equal reaction.

Could our talking about being frugal to anyone who will listen has come to bite us in the buns? Perhaps 'they' have found a way to empty our pockets. Just asking.

The investments come after this step.

[Gardening Grandma]

I start worrying when our actual expenses exceed the budgeted amount for several months in a row.
That's my clue that we need to budget more for that category. Then we have to figure out where we're going to cut in order to do that.

[lynnerself]

No, we don't sweat the small increases. Gas could increase to $5 and we probably would not changes our driving habits. Nor will increasing prices change the food that we buy.
We have no debt, investments and retirement on auto pilot. Small to moderate increases would just take a little money out of other options for discretionary income.
What we do worry about is the lack of raises and the 5 to 10 cut in pay due to furlough days.

[schildi]

I don't worry about small increases.
Higher gas prices will make people consume less, that is a positive side effect.

[❤ mollymouser ❤]

I find it easiest to start panicking early, and to keep panicking, and then to just stay on the panicking bandwagon. ;D

[midjd]

I don't worry about gas prices until it gets near $4 - our daily drivers get good mileage and DH and I carpool a few days a week.

Food prices have been steadily increasing for a while (I'm one of those people who spends 3+ hours in the store, comparing the prices on everything... it's my therapy). Small increases are OK - I see it as a challenge. Increases of more than 15% on things I buy regularly irritates me, though. It seems like a year or two ago I used to be able to get a 2lb container of Folgers for $6, now I rarely see it for less than $10. We're almost at the point of having to make coffee a line item on the budget

[Tiny]

The small increases don't really bother me all that much. I've gotten my fixed expenses as low as I'm comfortable going. I already drive as little as possible (I find it time consuming and I value time more than I value driving 30 minutes so I can browse at Target). So gas prices don't really bother me that much. They aren't eating up alot of my budget and gas isn't a 'cash leak' in my budget.

I do pay attention to what I am paying for stuff though... and it seems that even though prices on consumables (other than gas) go up in price I can usually keep the cost in check via buying in bulk or watching for sales/coupons. For instance: 2 liter bottles of Diet Coke are now topping $1.89 when not on any sort of sale - last year this time they were $1.69 at their highest - so sez my price book. I rarely pay more than $1.00 for a 2 liter bottle of pop. In fact, this week 2 liters are on sale for $1.00 a bottle. I checked my calendar (I take 2 liter bottles to game nights) did alittle math on how many bottles I need to take to game nights and for use at work and home and came up that I need 10 2 liters between now and the end of April. I'd ride out the non-sale weeks because I stocked up. I've been paying $1.00 a 2 liter bottle for years now. Sometimes I catch a super sale - .89 a 2 liter but that's a once a year thing. I don't really care what prices groceries go up to at their highest points - I rarely if ever pay that - the good sale prices have staid pretty constant for the last two years (so sez my price book).

[Tiny]

I try to focus my money saving skills on big ticket items like the cost of insurance (I review my coverage to make sure I'm adequetly covered and that something that's useless to me (like paying for a discount on car rental should my car be in the shop for days) aren't on the bill. I also shop around for coverage every couple of years) I pay attention to my property taxes too. That and my utility bills - there's always something new showing up and sometimes I can opt out of the charge (like on my land line). Any yearly big expenses get reviewed. I tend to worry about spending hundreds of dollars unnecessarily versus having to spend an extra hundred or two on groceries that are a necessity each year.

[Artemis Windsong]

Buying coffee is ridiculous. Last fall Maxwell House was $5 and now it's edging to $11 for the same container. I quit diet cola a couple of years ago. DH has not. He thought I was nuts when I came home with six 12-packs of sodas. I don't think I will find that bargain again.

The people on fixed incomes or unemployed will feel the pinch as most of them are already budgeted.

[illinicheme]

We're currently able to easily absorb small increases in prices, so I don't sweat it too much. I try, as always, to mostly buy stuff on sale, but I don't keep a price book or do extreme couponing.

[dancinmama]

Mar 16, 2011 20:15:12 GMT -5 @bobbysgirl said:

I think we know being frugal means taking a look at the small things that make up the big picture. We save hundreds of dollars every year with this strategy. It makes sense to me that these savings could be lost when our needed expenditures nickel and dime us. I guess it comes down to for every action there is an opposite and equal reaction.

Could our talking about being frugal to anyone who will listen has come to bite us in the buns? Perhaps 'they' have found a way to empty our pockets. Just asking.

The investments come after this step.

bobbysgirl: I totally agree. A lot can be lost not paying attention to the day in, day out small stuff. I don't "worry" about the small increases, I just keep doing my thing.

[motherto2]

The problem as I see it, is you see this or that that has increased a few pennies, and then you see gas prices have gone up, then you see that electric has gone up, then you see your water bill has increased, etc, etc, etc. So while we don't sweat the little things at the time they occur, if you look at all the things that have crept up say, over the last year, you would start to sweat the little things. For me, a couple of years ago I paired down to the bare minimum where I could when I thought it was the right thing to do. I do admit I have a whopper cell phone bill every month, but keeping in touch with my kids is more important so I tolerate it. Yes, I could pare that down a little more, but it wouldn't go down significantly. But since I've paired down most everything, especially things like gas budget, food budget, entertainment budget, now that those things are going up, I start to worry. I pretty much have made myself home bound to keep myself from spending where I shouldn't. I guess it's going to come to me reevaluating a few things, but for now, I'm just trying to find ways to save.

[Deleted]

I don't worry about the small increases since we not that close to the edge, but I monitor them closely...

So when I go over my budget I see how much I went over in certain categories and the money will come out of other categories because our paycheck remains the same.

Since gas went up, we spent less on eating out and pack more lunches for work.

As the saying goes:

“Take care of the pennies and the pounds will take care of themselves” or the The Americanized version “Take care of the pennies and the dollars will take care of themselves.”

[qofcc]

I notice more when gas goes up more than food because it's a much larger line item in the budget and it's harder to cut back on. I can always choose less expensive food if I need to, but I still have to commute to work.

[whoisjohngalt]

I look at all expenses on an annual basis. When my annual expense increases by a grand or two, I start revamping things.

But we went through so many changes in the last 5 yrs that I haven't established a good "history" yet. So, starting this year I am beginning a whole new budgeting history.

Lena

[Deleted]

Mar 16, 2011 21:04:25 GMT -5 ❤ mollymouser ❤ said:

I find it easiest to start panicking early, and to keep panicking, and then to just stay on the panicking bandwagon. ;D

This is my philosophy for all of life.....except gas really. Would we change our driving habits? Yes, we already have...... we use my little car around town and leave my husband's ginormous gas-guzzling truck at home when it's possible in most cases. The husband wants to sell it. We'll be done with the payments in less than a year....It doesn't make sense to me to sell it solely for "gas money" reasons. Calculating out the miles we use it a month....vs the cost of a smaller SUV (since we need SOME hauling capacity), it's only a savings of $50 a month to add another car payment for 4-5 years. NO THANK YOU. We'll be driving it into the ground and replacing it with something in cash!

[giramomma]

I don't worry about small increases at all. But, we've set ourselves up so that we shouldn't have to worry about them.

Now job loss, I worry about. That's about the only thing financially I do worry about.

[sunuva]

It isn't so much worry but just getting psst-off!

The small increases I am referring to are the tax increases. With three levels of government every little bit is a multiplier effect. Municipal taxes go up by 0.7%. "That isn't very much," say the councillors. "You're right, I can afford that," say the populace. Then you get a little bit more at the state level. Perhaps a little bit more at the federal level. Sales tax chews up some. Next year's budget is a little bit more. Then in a short few years you have all of these 0.5% and 0.7% and fractions of a percentage being applied and multiplied and you think to yourself, "Wow, where does the money go? When did it get so expensive?"

I understand the concept of taxes and I can even accept paying taxes. But deficits are basically governments not able to finance their promises. Now taxes are being justified as required to bring deficits in line but not necessarily changing government's behaviour (although austerity measures in Europe may signal an indication that behvaioral changes are possible). If a government doesn't change it's behaviour and taxes are constantly increased to bring deficits in order then the government still has a problem with not being able to finance their promises.

So, stop with the promises - already! And that's the real sticky point. How do you get governments to stop making these ill promises? And how do you get people to stop wanting ill promises?

Taxes are now becoming more of paying for the promises of yesteryear than they are for paying for governing in the present. So I can't see an end to the spiral of ever-increasing taxation where the future will pay for the present just as the present is paying for the past. The problem is that I believe the future will be paying for the present and for the past since the present can't manage paying for the past.

So, yes, these little tax increases from all levels of government really pss me off!

[Deleted]

They bug me more since joining the money boards. Because now I multiply every little increase by 20 to estimate what it will cost in 20 years, when I am looking at retiring. Grrrrr

[ohmomto2boys]

We try not to panic over the small stuff. Will we change our mind this summer about doing some weekend trips? Probably, because we already have a vacation to the beach planned (driving) and a wedding 4 hrs away (driving). We just have to up our spending allowance for both of these trips to allow for the gas. We watch what we spend, but gas prices are not going to totally control our lives. I'm also going on a girls weekend in a couple weeks - driving 3-1/2 hrs. Maybe I'll have one less margarita.....maybe not.

[bobbysgirl]

It isn't so much worry but just getting psst-off!


Read more:


SUN: You're right on.

[Deleted]

Mar 17, 2011 8:07:25 GMT -5 sunuva said:

It isn't so much worry but just getting psst-off!

The small increases I am referring to are the tax increases. With three levels of government every little bit is a multiplier effect.

I agree. We live in KS and our sales taxes are over 8% and they apply to everything, including food and clothing. When I actually remember to look, I'm horrified at what gets added onto our weekly grocery bill. I remember when sales taxes were around 3%, but every government entity has to add on "just a little". I remember when NJ changed the sales tax laws to apply to alcohol and cigarettes, which of course already had piles of "sin taxes" buried in them. Taxes on top of taxes.

[achelois]

Not too worried at present, but in seven years I will be.

Retiring then, I hope.

[snapdragon]

[quote It isn't so much worry but just getting psst-off!

The small increases I am referring to are the tax increases. With three levels of government every little bit is a multiplier effect. Municipal taxes go up by 0.7%. "That isn't very much," say the councillors. "You're right, I can afford that," say the populace. Then you get a little bit more at the state level. Perhaps a little bit more at the federal level. Sales tax chews up some. Next year's budget is a little bit more. Then in a short few years you have all of these 0.5% and 0.7% and fractions of a percentage being applied and multiplied and you think to yourself, "Wow, where does the money go? When did it get so expensive?"

I understand the concept of taxes and I can even accept paying taxes. But deficits are basically governments not able to finance their promises. Now taxes are being justified as required to bring deficits in line but not necessarily changing government's behaviour (although austerity measures in Europe may signal an indication that behvaioral changes are possible). If a government doesn't change it's behaviour and taxes are constantly increased to bring deficits in order then the government still has a problem with not being able to finance their promises.

So, stop with the promises - already! And that's the real sticky point. How do you get governments to stop making these ill promises? And how do you get people to stop wanting ill promises?

Taxes are now becoming more of paying for the promises of yesteryear than they are for paying for governing in the present. So I can't see an end to the spiral of ever-increasing taxation where the future will pay for the present just as the present is paying for the past. The problem is that I believe the future will be paying for the present and for the past since the present can't manage paying for the past.

So, yes, these little tax increases from all levels of government really pss me off![/quote]



Very well said, and true on so many levels.

[Sum Dum Gai]

Taxes on top of taxes.

Those are the little things that really piss me off. Getting taxed on something is already unpleasant, getting double or triple taxed on an item is fraking ridiculous though. Granted we're already double taxed on most everything since we've already paid income tax before we start paying other taxes, but then you have things like gas where the sales tax applies to the portion of the bill that was gas tax in the first place. Are you kidding me?

[8 Bit WWBG]

...:::"It makes sense to me that these savings could be lost when our needed expenditures nickel and dime us.":::...

Agreed. Just as small cuts add up to big savings, small increases add up to big costs. While the individual impact of say... my favorite breakfast place raising all prices by $0.25, or the grocery shrink ray hitting milk and flour may not seem like much by themselves; the aggregate effect can be devastating. People feel the pinch when they have to spend the same to come home with less, or spend more to come home with the same.

The effect is worsened by a few big hits in the form of "fuel surcharges".

Whats also not fun is that those who have always practiced frugal habits then become encroached upon as other people figure out and adopt those habits.

...:::"and leave my husband's ginormous gas-guzzling truck at home when it's possible in most cases.":::...

I'm not sure gas is expensive enough yet. Once again this morning, I got a spot that was encroached upon by some moron's bus.

[telephus44]

Yeah, fuel surcharges - where I work, I ship full truckloads halfway across the country on a regular basis. My costs have gone for $900 to $1150 per truck in the last few weeks. Fuel Surcharges.

And I finally paid more than $40 to fill up my car (Honda Civic).

Overall, I don't really worry so much as pay attention. I'm not changing my driving habits, shopping at different grocery stores, etc. but I am paying attention to see where my money goes, and to see if at some point it would make sense to make changes.

[The J]

With the way I budget, I don't really get concerned. My budget provides for category 1 -- savings, category 2 -- fixed bills and category 3 -- everything else. I'll only get concerned if I find that category 3 is getting really tight.