With the war in Iran and the Straits of Hormuz closed, Crude Oil has skyrocketed, taking gasoline prices with it. But how are gasoline prices doing on an inflation-adjusted basis? Are they higher than 2022's prices? Are gas prices really at all-time highs? How do today's prices compare to what your grandparents paid? Was gas really that cheap during the 1950s and 60s? What caused gas prices to crater in 1998? How do today's prices compare to prices during the 1970s OPEC shock? What is the average inflation-adjusted price of gas over the last century? Are we above or below the average? The answers might surprise you. When you adjust for inflation, the story of … [Read more...]
Editor’s Secret Trick to Eliminate Debt
If you’re currently carrying a balance and watching interest charges eat away at your progress, many advisors recommend moving your debt to a 0% intro APR credit card, but there is a problem... What They Don't Tell You.. Although paying zero interest for 12 to 24 months would be a great advantage in getting out of debt, transferring your credit card debt from a high-interest card to a zero-interest card isn't free. Zero-interest credit card companies typically charge from 3 to 5 percent for the privilege of transferring your debt. So let's look at the numbers for a minute. Let's suppose you have $10,000 of debt on a card charging 24% annual interest. That means that every year you are … [Read more...]
Why the 2.8% COLA May Fall Short of Real Inflation
The Social Security Administration (SSA) has announced that benefits will rise by 2.8% in 2026, based on the official measure of inflation, the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The annual Cost of Living Adjustment (COLA) is meant to help retirees and other beneficiaries maintain purchasing power as prices rise, but the government’s calculation may be underestimating the true inflation felt by consumers. The COLA is determined by comparing the average CPI-W for the third quarter (July–September) of one year to the same period the year before. The difference in those averages sets the percentage increase in benefits. For 2026, the CPI-W figures were: … [Read more...]
How To Recalculate Retirement for Today’s Economy
Today’s economy looks different than when many pre-retirees first built their plans. Inflation has eased from its 2022 peaks but is still running above the Fed’s 2% goal – i.e., about 2.4% year-over-year according to the Bureau of Labor Statistics as of March 2025. At the same time, interest rates are much higher than several years ago. Many people approaching retirement today remember the 1980s when inflation was in the double digits. The Federal Reserve is currently keeping its benchmark interest rate at 4.25–4.50% (after cutting from over 5% in late 2024). Stock markets have fallen and then rallied slightly recently, so volatility and global risks persist. In practice, this means bond … [Read more...]
Which Debts To Pay Off First When Inflation Hits
Inflation does more than push up prices at the store — it also makes borrowing more expensive because banks need to raise interest rates to cover the loss of purchasing power of the money they are loaning out, since they are getting repaid with "cheaper dollars". When prices rise faster than wages, household money shortages lead to mounting debt. And, unless you have a fixed interest rate lown, your monthly payments on loans and credit cards will climb higher each month. With these rising costs, you need a clear plan for tackling debt. The Impact of Inflation on Debt When inflation rises, it affects your debts in two different ways. Rising prices change how much your debt really costs. … [Read more...]
Inflation and Retirees
Inflation presents significant financial challenges for retirees living on fixed incomes, as rising costs strain budgets. Although Social Security has a Cost of Living Adjustment (COLA) built in, Social Security was never meant to be your only source of income after retirement, but rather it was intended to supplement your other retirement income. This article will explore key areas most affected by inflation, such as food, energy, healthcare, and discretionary spending, and provide practical tips to help you adapt. For those planning to retire in 2024 or the next few years, identifying and managing everyday expenses is more important than ever to maintain financial stability. #1 Keeping … [Read more...]
Inflation-Proofing Your Family Budget
After a sustained period of post-COVID inflation, prices for household goods and food have begun to stabilize between two and three percent. However, if you happen to have dug out an old receipt from a pre-COVID food shop, you may be shocked to see how much more you pay for everyday items and ingredients. This is because the effects of inflation are cumulative and compounding. So, three consecutive years of 2% inflation results in more than 6% cumulative inflation and if you throw in one year of 9% inflation prices really soar. The rapid change in food prices is largely driven by a 2022 spike in inflation, which saw the average grocery bill rise by 9.9% in a single year. While a few … [Read more...]
How Inflation Is Reshaping the Job Market for New Entrants
As you enter the workforce, there are myriad challenges and strategies to navigate — particularly around finding a job in the first place. Inflation rates only complicate this intricate dance you are doing to land a career as a recent graduate or new professional on the scene. Whether you’re sure or unsure about your career path, there are plenty of opportunities to be found in the current job market. Although the rate of rising prices changes things a bit, there are ways to be savvy about the system and land the job of your dreams. The Current State of Inflation and Wages There always seems to be a debate over whether or not wages are keeping up with inflation. However, it’s not always a … [Read more...]
Not All Prices Have Inflated Since 1964
Recently I came across a Newspaper ad from 1964 which coincidentally is almost exactly 60 years ago. So, I thought I would look up how much inflation we've had in the last 60 years. According to the U.S. Bureau of Labor Statistics (BLS), total inflation from November 1963 to November 2023 is 896.92%. So, $100 after adjusting for inflation is $996.92. Therefore, we would expect everything to cost about 10 times as much as it did in 1963. Note: We've used November 1963, and November 2023 because that is the most recent data from the U.S. Bureau of Labor Statistics. The advertisement that got me started on this trip down memory lane was for a 1964 RCA Color Television. In those days … [Read more...]
Gasoline Prices vs. Wages Over Time
Historical Gasoline Prices in Pictures-- I thought it would be fun to look at some pictures of gasoline prices in days gone by. Of course, we have to remember that salaries were much lower in those days as well. Inflation doesn't affect all prices equally. Let's look at how Gasoline Prices and Wages relate since the 1920s. In 1924 my grandfather probably paid around 21 cents a gallon for gasoline. The average wage was about 62.6¢/hour. But that was just the average, a unionized carpenter in Boston would have made a whole Dollar an hour. Imagine paying 15½ cents for a gallon of gasoline. Although we don't have an exact date for these pictures, we can estimate the … [Read more...]