In this article, I’d like to explain why in 2019 the economy had the best unemployment rate ever recorded by the U.S. Bureau of Labor Statistics, below 4%. At the same time many in our communities saw their abilities to live and to buy goods diminished as things became more expensive due to inflation. Growing up in the 1980's It’s hard for me to believe my mother a single parent who made less than $50,000 was able buy a house, owned a car and helped me through college.
Let’s discuss why so many are not benefiting from the low unemployment rate. It is simple, the cost of our daily necessities are going up, housing, food, healthcare, clothing, utilities. Contrary to the 80's, as technology advances so does our expenses; cellphones, the need for internet connectivity, cable television. Growing up in the 80's we had one television with rabbit ear antenna that was always static, a wall phone and a typewriter. I used to pack lunches daily. Today, on average I spend $500-$800 monthly eating out. Whether it is buying a cup of coffee, lunch or dinner. The advancements in technology have made our society more conveniently efficient but it comes at a cost. I remember having to buy film for my camera then having to wait to have it developed. Today I can take several pictures digitally, delete the ones I don't like; in the past it wasn't so convenient.
Living in the New York City Area, I have seen housing costs go through the roof; although over the past decade. At least once a week I either have a conversation or over hear my co-workers, friends and even strangers talk about their difficulties to adjust to the rise of everything becoming more expensive; yet no increase in pay. Without a doubt many in our communities are working longer hours and attaining various gigs to make more money.
How can you stay ahead?
While it may be easier said than done, try to avoid taking on more debt by cutting non-essential spending. Believe it or not there are steps that can be taken to help lower your expenses. For example, limiting the frequency of eating out by cooking more frequently at home; although If home cooked meals aren’t an option try to look for deals.
What skills do you have that you can monetize?
There are a lot of skills that you possess and a great option to make money can be teaching or mentoring others about areas where you possess a specific skill. Physical fitness training, event planning, cooking meal prep, babysitting, pet walking, and develop a business plan to market your services to your co-workers, friends, family or any one looking for your skill.
Do you have an emergency fund or a savings account?
Through the years, personally I have found that it is a good ideas to set up an emergency fund. Would you miss $30 every paycheck? Assuming you get paid weekly, setting aside $30 per pay period you can save over $1500 every year!
Conclusion:
The world that I grew up in had a lower inflation rate and in many ways it was a better time. I can not dismiss the tremendous advantages and conveniences that are available to us today. Imagine going back to the days of carrying around a notepad to writing down a girl's number while wishing she doesn't reject you. Imagine going back to the days of using a typewriter that types loud enough to wake up the neighborhood while you are trying to finish a school paper. Times are changing and so are our finances; it is important now more than ever in order to not have to play catch up.
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