A Few Thoughts On Rising Prices
Posted on Feb 20, 2008 under Commentary |I had the news on in the background while I was doing some other things, and I heard multiple reports about how the cost of this or that is going up. The price of a barrel of oil has hit another all-time high which could cause the price of gasoline to go up as well. I also heard about the price of wheat going up because more fields are being used to plant corn instead, which is being used for alternative fuels. Many other things seem to be going up as well, how much should we all be worried?
My Take On Things
I personally am not all too concerned about the reports that I hear about price increases and the like. One reason for this is that I’m not walking a tight-rope with my finances. I have built-in buffers (which I’ve talked about before) in the way I handle my finances that a little increase here and there isn’t going to leave me in dire straights. I’ve chosen to live an affordable lifestyle that’s well within my means which takes a lot of pressure off.
The other reason I don’t stress about all the doom and gloom in the financial media is because I choose not to worry about things that I can’t control, and I focus on the things that I do have control over. As an example, I can’t really do much about the price I will pay for a gallon of gas the next time I fill up. I can, however, choose to drive less, combine errands, carpool with friends, drive an economical vehicle, etc. I’ll also take another example. As I’ve mentioned, the price of wheat is going up along with dairy products and some other things. I could choose to worry myself about the increase in bread and pasta prices over which I have no control. I could also choose to eat more rice, beans, potatoes, oats, and much more where the prices haven’t really changed all that much.
What It Boils Down To
For me, it goes back to what I remember reading in a book by Stephen Covey where he talks about the circle of influence. There are things that we have control over, and there are other things which we have no control over. It is our job to focus on the things that we can influence and not to worry about that which we can’t. I’m not trying to be flippant about the subject, but I could stand to hear a little less reactionary complaining and see a little more proactivity.
What are your thoughts on this? Let me know if you disagree.
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by creasy bear, on February 21 2008 @ 5:24 am
the only thing i disagree with is that you didn’t link (http://www.youtube.com/watch?v=aNaKWXqXkhw) when you said “dire straights.” it was just begging to be done.
otherwise, i think this is a good post. good advice in general to not worry about that which we can’t control. and honestly, in our economy, prices have a way of normalizing and/or we naturally find cheaper alternatives, so it’s really not worth getting all worked up about.
by creasy bear, on February 21 2008 @ 5:25 am
which reminds me, does this new wordpress setup allow html embedding in the comments. because a usage there would’ve been cleaner than what i just did.
by Robert D. Ashby, on February 21 2008 @ 8:25 am
I have been talking about stagflation’s possibility basically since the Fed started rate cuts, but your hit two key points. 1) Why should we worry about it, since we cannot control inflation ourselves? 2) Those who are complaining the most have never had fiscal discipline and left themselves in their own mess, including most of those facing foreclosure.
People really need to make adjustments to their financial lives first and foremost and set in place a solid financial plan. Then times like these are “non-issues”.
by fiscalmusings, on February 21 2008 @ 8:17 pm
I’m glad I’m not the only one who sees things this way. Thanks for the comments.