Factoring in the cost of inflation

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delighted99
Posts: 470
Joined: Sun Sep 06, 2015 10:26 am

Factoring in the cost of inflation

Post by delighted99 » Sat Jan 19, 2019 12:52 pm

Sometimes I think in terms of 1990s prices on big ticket items like homes and cars. I started using this inflation calculator to help me better understand today's prices. Don't know if I'm alone in this or not.

https://www.usinflationcalculator.com

Works the other way too.. an example.. DH says he thinks the price of new trucks is outrageous. We looked up the 2019 Ford Ranger (they're bringing it back) and he says "30 K?! " I used the calculator to explain that in the 90s that would've been just under 20K. Maybe we are still thinking of what things cost back then..

icfrugal1
Posts: 2284
Joined: Fri Aug 28, 2015 12:54 am

Re: Factoring in the cost of inflation

Post by icfrugal1 » Sat Jan 19, 2019 1:42 pm

I love this !!! :o :o :o

Thank you !

IC

BevMoore
Posts: 664
Joined: Thu Aug 27, 2015 11:04 pm

Re: Factoring in the cost of inflation

Post by BevMoore » Sat Jan 19, 2019 6:23 pm

So I am curious for those of us who use CC's a lot for the cash backs they provide; do you find what you get back equals inflation when all is said and done? I get back between 1-2% back depending on my purchases. For my Costco and Sams club accounts; I do pay the yearly memberships but find my cashbacks pay for the memberships. Then on top of that I usually save about $.50 per gallon on gas. And on things I buy I try to buy only what I need that is on sale. I will admit I do like to buy a book I want when I am there so that's for my entertainment. As long as my savings, rebates, COLA's etc. cover the cost of inflation I won't grouse about it; but I know some things definitely exceed to 1-3% inflation rate. If someone is willing to do the math on all of this let us know what you find. Heck I may even do it at some point. I am sort of a nerd about stuff like this but would like to hear what others find.

Bev

ohjodi
Posts: 907
Joined: Sun Aug 30, 2015 3:57 pm

Re: Factoring in the cost of inflation

Post by ohjodi » Sat Jan 19, 2019 9:23 pm

I love using an inflation calculator! My mental price-book is stuck in the 90's, too.............like why can't I get an oil change for $12.95?

Lately I've been using it while watching The Waltons! The kids were given .10 for the fair.....that's $2, today. John Boy bought Mama an old washing machine for $35....that's 673, today.

Game shows: The Price is Right in a 1982 episode had a washer and dryer for $900, that's $2320.

I use it a lot when talking to my dad. Just today we were talking about old times, and how they used to rent a big 2-bed apt for $650 back in 1988, and wow, wasn' that cheap!
Ha! that's $1366, today.

Dad was upset that the Florisheim shoes he's bought for 40+ years cost $120, now. He wants to pay $80. He paid $80 back in 1982............That's $206, now. Today's price of $120 is cheap because they're not made in the US (or europe), anymore....it's China and such.

It also helps when reading old frugal books like The Tightwad Gazette, which was published 25 or so years ago.

It also helps show that some things are CHEAPER, today. My internet and landline is $80/mo. But in 1998 when I first got internet, I was paying $75. That $75 is $115 today.
ohjodi

colonialgirl
Posts: 1449
Joined: Sat Aug 29, 2015 2:01 am
Location: Central Illinois

Re: Factoring in the cost of inflation

Post by colonialgirl » Sun Jan 20, 2019 3:49 am

Jodi -
When we were first married in the 1970s, my daddy used to urge me to save money up and buy a house. He said you could buy any house in America if you walked in with $35k cash in hand - no one would turn you down. I kept telling him, Daddy - it is not 1945, but he never ever could accept current prices.

ohjodi
Posts: 907
Joined: Sun Aug 30, 2015 3:57 pm

Re: Factoring in the cost of inflation

Post by ohjodi » Sun Jan 20, 2019 7:04 am

colonialgirl wrote:
Sun Jan 20, 2019 3:49 am
Jodi -
When we were first married in the 1970s, my daddy used to urge me to save money up and buy a house. He said you could buy any house in America if you walked in with $35k cash in hand - no one would turn you down. I kept telling him, Daddy - it is not 1945, but he never ever could accept current prices.
After years and years of me trying to convince my dad that he is severely under-tipping, or paying the kid who mows the huge hilly lawn too little, or underpaying him to plow the long driveway, or him nagging my stepmom about what she spent on something, or him refusing to buy a new dryer for her because they cost more than $250.......

I finally hit on a trick to get him to fork over the money:

I offer to GIVE him the money to pay for it, LOL "Dad, I'll just mail a check for $50 to the lawn kid for you if you can't afford it......" "I'll put a new dryer on my low-interest credit card and pay for it... " "It's ok if you don't have enough for the tip, I'll hand it to the waitress, myself on the way out......but wait, I'll just pick up the check, or at least let me pay my share, I know money is tight for you..."

I don't say it sarcastically or jokingly......and it works every time. LOL
ohjodi

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