Factoring in the cost of inflation

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alliesmama4
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Re: Factoring in the cost of inflation

Post by alliesmama4 » Sun Jan 20, 2019 7:13 am

delighted99 wrote:
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..
Thanks for sharing this site. It is very interesting and helpful. Janet Alliesmama
Janet Alliesmama

colonialgirl
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Re: Factoring in the cost of inflation

Post by colonialgirl » Sun Jan 20, 2019 2:49 pm

Good trick. My daddy never handled the money in any way so we were never faced with corrective behavior. They never ate out and my mother took care of the bills. After Mama passed, my brother or I paid the bills for him. When my mama died he was 90 and he had never written a check. I really miss them.

alliesmama4
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Location: Southern IL

Re: Factoring in the cost of inflation

Post by alliesmama4 » Sun Jan 20, 2019 7:57 pm

colonialgirl wrote:
Sun Jan 20, 2019 2:49 pm
Good trick. My daddy never handled the money in any way so we were never faced with corrective behavior. They never ate out and my mother took care of the bills. After Mama passed, my brother or I paid the bills for him. When my mama died he was 90 and he had never written a check. I really miss them.
Lynn my Mom and Dad did things the same way.. We use to tease Dad and tell him he could not cash a check if he wanted to. Fast forward to his retirement and he walks to the bank to cash his first retirement check. He endorsed the check and asked for cash. The bank cashier would not cash it. She said it was not his handwriting... This was a small bank and they always knew who you were and who your family were. So Mom had to go in with him and tell them for all of the years of banking with them she is the one who signed his paycheck...lol. Janet Alliesmama
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delighted99
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Re: Factoring in the cost of inflation

Post by delighted99 » Mon Jan 21, 2019 12:58 pm

BevMoore,

Sounds like the math is already done. You say you can get between 1-2% cash back on these CCs. The estimated inflation for year 2019 is 1.9% according to this site that I used. So way to go :D



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
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delighted99
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Re: Factoring in the cost of inflation

Post by delighted99 » Mon Jan 21, 2019 1:04 pm

Very interesting about the internet! I've noticed the prices of computers being cheaper of course as technology improves.. but I hadn't thought about internet. I'm thinking these computers must be *much* cheaper than they once were if I'm thinking they are cheap without factoring in inflation.

My dad really enjoys watching the old game shows. Match Game for example. :D
ohjodi wrote:
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.

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delighted99
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Re: Factoring in the cost of inflation

Post by delighted99 » Mon Jan 21, 2019 1:05 pm

You're welcome!
icfrugal1 wrote:
Sat Jan 19, 2019 1:42 pm
I love this !!! :o :o :o

Thank you !

IC

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