More Control Than We'll Admit

Oh, inflation. Inflation, inflation, inflation. Inflation is a topic that doesn't seem to go away. It's now as engrained in our cultural narrative as Taylor Swift, TikTok, and my Bears being terrible. Inflation is an easy target. It's easy to point to a single number as proof of why we're screwed. "Well, gas prices were x, and now they are y," or "My weekly grocery haul used to cost b, and now it costs c." While those facts may be true, they don't properly account for the overall picture. They are just numbers in a vacuum. 

I had a conversation ask week that may illustrate the topic. While meeting with a client, we were looking closer at their current monthly budget. This exercise was through the lens of changing circumstances and a desire to carve out more margin. This family's monthly needs are approximately $9,000. This accounts for food, housing, utilities, transportation, and other items that are essentially needs. 

Curious about the broader context of this number, I flipped back to some of their older budgets (from four years ago). Much to their dismay, their apples-to-apples monthly needs were just $5,000 back then......less than half of what they are today! You may be thinking to yourself, "How do monthly needs go up by $4,000 in just four years!?!?" There are a few reasons this happens, which primarily include:

• Inflation

• Changing seasons of life

• Lifestyle creep

• Evolving definition of "need"

I don't highlight this to point fingers. This isn't a condemnation of them (or anyone else). Rather, this is a great opportunity to look in the mirror, be honest with ourselves, and act accordingly. 

Yes, inflation has done a number on this family. That's a very real thing. We can go category by category and see how their monthly spending has changed over the years (one of the benefits of budgeting and tracking over a long period of time). Inflation has played a role in this. 

But we also need to take account of all the areas in our lives that we've inflated (whether intentionally or unintentionally). Just because we can spend on something, it doesn't mean we should. It's so easy to squint our eyes and decide xyz is now a need, or what was once needed isn't enough anymore. We humans justify all sorts of decisions this way.

We also have to look at our major decisions and how they impact our financial journey:

• The cars we buy

• The house we live in

• The childcare we choose

• The stores we shop at

• The food we eat

Not all decisions are created equal. Some decisions can transform our budget to the tune of hundreds or thousands per month. It's critical that we view each decision through the lens of our broader life and what's most important to us. 

So as we enter a new year, perhaps this is a great time to take a look at your numbers. Take back control. Focus on meaning. Create margin. Give yourself peace. You deserve it!