Everyone has a breaking point and the trigger can be anything but I think for most people it’s usually money related. Perhaps the cost of food at the grocery store? Or maybe insurance costs for health, home, or auto? Or maybe property taxes or HOA fees that don’t seem to relent?
For me, right now, it seems to be inflation.. It’s seems to be totally out of control and no one iis doing anything about it. For every step forward in fixing the problem, we seem to take two steps back.
The latest inflation report shows inflation is a whopping 3.3% and that assumes you believe the distorted statistics massaged to make things look better than they are because I am fully aware that gasoline prices, utilities prices and most things have gone up in cost. Some analyst think inflation will be 4% or higher for 2026.
This week we received a notice from the city that our water costs are going up 8 percent! I just wrote a post in January about our sinister water bill and we’re now getting another increase.
A 4 percent inflation rate would be devastating for most people and it would likely crush the economy. I wrote a post about it being the #1 killer of quality of life recently and it continues to be a key worry for me and should be for you.
I am currently re-visiting a post I wrote a while ago about how to create a portfolio for high inflation and looking at some options.
The worst hit from high inflation will be fixed income retirees reliant on social security and small savings / investment accounts and my heart goes out to them on their current and future struggles.
I really want to retire but under these conditions it doesn’t make a lot of sense so I keep chugging along. At a bare minimum, this situation in the middle east needs to get resolved before I feel comfortable making retirement decisions.
Share The Wealth
Are you reaching a breaking point yet?