Raising Prices???

I just heard a thing on TV where they said in the 1930’s bread cost $.09 and the average hourly wage was $.25. With a little figuring I found the average person in the 30’s could buy not quite 3 loaves of bread with their hourly wage.

I then used an average wage of $20 for now a days and figured we could buy about 20 loaves of bread. Even if you just get minimum wage it will still be 6 loaves which is double of the 30’s prices. I get my bread for $.79 so that would be 25 loaves of bread. Big difference isn’t there.

I have done these same types of numbers over and over for other things and other decades and I still come up with the same thing – compared to the income we bring in now a days even those on minimum wage we still have it better then years ago.

I don’t want to sound uncaring or anything but I do get frustrated when a new catch phrase comes out and we all start using it with out thinking or really finding out if it is true or not. Phrases like “Prices are so much higher now” of course they maybe higher because incomes are higher.

I can hear you say “That’s true but things have changed in the past year or two” which is right but so have the prices. My TV died on me so I finally broke down and bought me a new one. I paid half the price for my new one that I did for my old one a few years back.

I just paid $.99 for a 3lb bag of oranges which is almost 1/3 of what I paid for them last year. I could easily go to the store and pick out 10 things whose prices have gone down in the past year or so.

I just want you to be aware of these things because often we use these phases as a crutch which keeps us from exercising and properly using the muscles we need to help us with our finances. Muscles like self control and wise thinking and buying.

Even if these phases were true which often they aren’t we shouldn’t let them pass our lips because they turn into excuses which keep us from thinking of ways to help ourselves as best as we can.

There is a billboard I drive past a couple of times a week which I think says it all:

Recession 101: Bill Gates started Microsoft during a recession.

People who succeed do it in spite of their circumstances or the times they live in.

Jill

Continue reading Raising Prices??? …

From Living On A Dime Blog » Living On A Dime Blog.

February 24, 2010 | Filed Under Frugal Living | Leave a Comment

The Simple Dollar Weekly Roundup: Freebies Edition

There is no such thing as a free lunch. From my experience, that’s completely true. Yet, I constantly advocate using free services all the time – the library, the parks, and so on.

Lately, a few readers have called me on this seeming contradiction, pointing out that, indeed, these things have costs. We pay those costs when we pay our taxes. And some people with a certain political perspective think it’s wholly unfair that we should pay for libraries and parks and the like.

Here’s the thing, though. It’s a sunk cost. We’ve already paid our taxes – and those taxes paid for those libraries. The money is already paid – so why not enjoy the fruits of those dollars? If you politically disagree with such services, act in a political fashion against them – but don’t eschew services. You’ve already paid for them. Use them.

Tyler Durden’s Guide To Personal Finance This is a humorous reworking of “Fight Club,” translating the themes of the movie into pretty sensible personal finance advice. I enjoyed reading it. (@ man vs. debt)

Thomas Carlyle’s Advice to Young Men This is brilliant advice for everyone today. Don’t follow advice to the letter – instead, explore and learn what works for you. A truly worthwhile person is able to find their own path and utilizes advice only in terms of trying to see things through another’s eyes. (@ art of manliness)

In Defense of Solitude (Part Two) I spend multiple workdays in solitude. For me, being alone is essential – a key part of being able to bear down and focus on tasks at hand. I find that interruptions make it much more challenging for me to complete anything well, so solitude is a key tool for my work. (@ soul shelter)

Banishing the No Momentum Monster Without some sort of crutch, I find it’s really hard to maintain the momentum of continuous work, like writing or exercising every day. For me, the “chain method” works well – I have a printed calendar on the wall in my office and each day I accomplish my specific goal, I put a big colored X on that date on the calendar. When I get a string of them going, I *really* don’t like breaking that chain, so it gives me motivation to do it. (@ unclutterer)

Off My Giving List I do the same thing – if a telemarketer from a charity interrupts me, I cease giving to them. I am a charitable person, but I value my family time and I don’t want it intruded on by some ham-fisted telemarketer. (@ free money finance)

Are Online Savings Accounts Worth It? We use an online savings account (ING) for most of our banking, but we also have a local bank for some specific teller services (cashing checks, mostly). We have the two accounts linked and everything just works like a charm. (@ bargaineering)

20 Cheap and Fun Date Ideas Most of these sound like a whole lot of fun to me! My wife and I already do several of these things, sometimes even with the kids in tow. (@ christian pf)

How to Destroy Your Investment Portfolio You can solve all five of these problems by simply buying a broadly based index fund and just sitting on it. Sure, you won’t hit a home run, but you will have consistently strong investment results over the long haul. (@ frugal dad)