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IT SEEMS EVERYONE in the personal finance world is flipping out about inflation. Some are lamenting the cost to fill up their F-150—with the optional 7.2kw onboard generator for tailgate parties no doubt. Others are decrying the $6.39 it takes to buy two liters of ginger ale or the $198 million required for a Rembrandt.
Hey, I don’t like higher prices for bourbon, vermouth, bitters and maraschino cherries any more than the next guy shaking a Manhattan, but let’s get a hold of ourselves. This isn’t the beginning of World War II—or even the end, at which time inflation was more than 18%.
It reminds me of the scene in The Godfather where Johnny Fontaine is complaining to the Godfather about the tough times he’s facing. He pleads, “I don’t know what to do,” to which the Godfather yells, “You can act like a man,” and then slaps him across the face.
Well, if inflation is becoming an issue for you like it is for me, then we can all act like men and take action. I realize none of these ideas is revolutionary, but sometimes we all need to review the fundamentals.
Consumers have been complaining about gas prices since the Saudis initiated their first oil embargo back in 1973. Trust me, I know. I used to work for an oil company and that’s all anyone wanted to talk to me about.
If high gas prices are a concern, get ahead of the problem by purchasing a car that gets more than the 25 mpg that the 2022 bestselling vehicle in the U.S. gets. Note I said car. Do you really need an F-150 to haul that mulch once every spring?
Crude oil is located in some of the most dangerous and unfriendly places on the face of the earth. I used to be involved with shipping crude oil out of Nigeria, where—on more than one occasion—we had to deal with pirates.
While crude oil is generally refined in much safer countries, oil is still a nasty and dangerous business. I don’t understand why people complain about $4 gas, yet pay $20 a gallon for something that’s free—water. That reminds me: Stop buying bottled water.
When you do drive your car, improve your gas mileage by slowing down. Back in 2005, right after Hurricane Katrina when everyone was flipping out over $4 gas, I thought I noticed that cars and trucks were going a little slower.
This time around, I do not. The engineer in me knows that there should be an inflection point where higher gas prices equal lower speeds, but apparently $4 or $5 isn’t it.
Start shopping at Aldi. Everyone always talks about how great Costco is and, for the 26 gallons of the 91-octane gas that Ford recommends for your F-150, it is. But for most everything else, I’d rather go to Aldi.
While they both give you the same Hobson’s choice when it comes to selection, Aldi’s package sizes are a little more digestible. I also think its prices are a little bit better.
May I recommend the 10 ounces of Park Street Classic Hummus for $2.45 or 10 Millville Chewy Granola Bars for $1.79? There’s a reason most of its stores are located in poor neighborhoods. Bonus: Some of these locations even sell wine and beer.
Turn up the thermostat. Until I was 15 years old, I didn’t realize that private homes could be air-conditioned. I thought it was only for movie theaters and department stores. A friend of mine who moved out of his condo months ago still keeps it at 76 degrees, all day every day. Turn the thermostat way up when you leave home. It may be a little warmer than you’d like for the first 10 minutes after you return home, but you aren’t going to melt.
Still freaking out about that 18% increase in the price of veal? Well, if a switch to pork is just plain frightening, I recommend taking up financial institutions on their bonus offers:
Inflation was 8.5% in 1980, and back then we had an 8.9% unemployment rate. Many thought it could be the end of days, with some city folk buying fishing rods and camping gear, just in case. It wasn’t, and this too shall pass.
Everybody needs to relax. Listen to a little classical music on non-satellite radio, crack open a Busch Light tallboy and breathe. We got this.
Michael Flack blogs at AfterActionReport.info. He’s a former naval officer and 20-year veteran of the oil and gas industry. Now retired, Mike enjoys traveling, blogging and spreadsheets. Check out his earlier articles.
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We are 3 months into a 4 month road trip, towing a camper and staying mainly in State and National Parks. By trips end we will have traveled probably 12,000 miles. Am I complaining about the price of gas? Nope, (well, maybe a little. We’re currently in California). Our 13 mpg is offset by averaging less than $30 a night for a camping site, usually cooking our own meals and being able to sleep in our own bed every night. It is all about choices. Fortunately, we are able to do this on our retirement income without having to touch our investments. As long as we can do that we’ll be fine. Already planning East Coast and Canada next year and Alaska the following.
Mike Wyant, please keep me updated on your progress.