In the checkout line, your heart skips a beat as you write the check for groceries—so much for so little. As you carry your bags to the car, you realize you used to have to use a cart to hold $75 of your basic necessities.
On the way home, it hits you—things really are getting more expensive. The energy bill for your electricity, the cost of your auto insurance, the price for that bad haircut—everything seems more expensive. But the government told you just last night on the news that inflation was actually under 2 percent. That does little to ease the headache you feel as you remember you have to stop at the pharmacy to pick up those prescriptions.
As you sit down at the kitchen table, even the herbal tea won’t soothe your pounding head as you stare at the pile of papers you must sort through to complete your taxes.
Every day, we work harder for a dollar that is worth less (not worthless, at least not yet) and we are taxed more on that dollar.
But the real cost of living is more than just inflation and taxation. Other factors include:
• Depreciation. Things wear out and need to be replaced—clothing, cars, the roof.
• Technological Obsolescence. New technology advances test our budgetary resolve. That smart phone bill that now exceeds $100 or more per month.
• Unexpected life events. Life takes us by surprise: a recent job loss, a long-term disability, little Suzy’s crooked teeth.
Planning for financial success in this complex world requires consideration of all these factors. We dare not place our hope in any plan that focuses only on rate of return and inflation. More than ever, finding financial balance requires a comprehensive plan that allows us to see the interconnected nature of our financial decisions and the impact of all the real costs of living.
For true comprehensive planning, contact the Sage Pacific Alliance at (808) 856-8138. Our team is here to help you with all your financial planning needs. Visit us on the Web at www.sagepacificalliance.com.