Six-digit ain't what it used to be

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(Edited)

         Truflation shows that the CPI is decreasing. Of course, that doesn't mean things are getting cheaper. Things went from a sizable inflationary jump to disinflation (that's still higher than the preferred 2%).

         Near the beginning of this year, I came across this article on Bloomberg about people living paycheck to paycheck on over $100K salary in the US. Since I fall into this income category, I had to check it out.

         Here's an archived version of the Bloomberg article.

         The article cited that about 64% of Americans making over $100K/year lived paycheck-to-paycheck in 2022. This number came from a study done by Pymnts.com and LendingClub. Unfortunately, I could not find the exact definition of paycheck-to-paycheck used in the study through non-paywall options. So, I assumed the surveyors referred to people with little to no disposable income. Furthermore, I'm not sure where the cutoff for over $100K is.

         If anyone is interested in diving deeper, you can try signing up for Pymnts' publications. It requires a valid business email. I'm not sure if I am willing to throw mine in there.

         Once upon a time, I thought it would be nice to make $100-200K a year and live a comfortable life. Inflation in recent years has proved that to be a pipe dream. Your $100K doesn't have the same purchase power before the Feds printed trillions during the pandemic. Not to mention, I lose almost 40% of my income to taxes, benefits, etc. I live below my means, hence why I can put aside money each money into investments such as crypto, equities, and precious metals.

         As living expenses become more expensive, I may have to scale back the money I put into assets. It doesn't help that new raises don't take effect until July, which slashes gains by half by default. I consider myself a pessimist. The Pymnt/Lending Club survey showed that the sentiments seemed to lean pessimistic over time.

         Looking at recent world financial news, I bet the split is more pessimistic now. I'm a believer in being in control of your wealth. So, I try to self-custody as much as I can. Leave enough fiat to cover costs and emergencies.

         Remember, not your keys, not your crypto. If you can't hold it, you don't own it.

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Add children into the mix and inflation pain is exponential. It's really starting to hurt now too. I often ask myself these days how others in worse situations than me and my family are getting by.

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I do have one child, so I get the feeling.

I also legitimately don't know how people are getting by.

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I think it will get worse. It's almost like a push to see how far they can take it without us getting onto the streets and burning shit down.

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Wages have not been keeping up with costs and I agree that things can only get worst. The politicians are out of their minds and theyaren't doing a great job of keeping faith in the dollar nor do they feel any qualms about spending money like crazy.

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Yeah, countries are already moving away from USD when they do bilateral trades with each other.

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