Has your wage increases kept up with inflation/cost of living increases? (companies, tax)
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
If you want a good scare, just pay attention to this guy who's been right all along with rising food prices, inflation, the credit crisis and the American consumer. If you search for his name on YouTube you will see for yourself that practically everyone in the comments section agrees with his outlook. Almost everything in his book has come to pass. It's 15 minutes but extremely informative and Peter articulates himself very very well. Yeah, he plugs his brokerage for a moment, but who wouldn't? Of course, Fox Business News, CNBC, CNN, and everyone else just keep laughing at him and denying their prior incorrect predictions whenever he's on the air. Then again, telling the truth when it hurts doesn't make the best of friends. He's sort of like Jim Roger's but much more articulate.
Euro Pacific Capital | Video Commentary (http://www.europac.net/commentary.asp - broken link)
Beating inflation was easy as cake if you didn't hold dollars or US dollar denominated assets. You could've invested in energy and high yield dividend stock with slow but steady returns and made a killing over the past 5 years. Betting against subprime was an easy call (shorting Bear Stearns), as well as shorting or some put contacts on homebuilder stock. Unfortunately, most responsible savers and investors hold the wrong currency and get the wind in their face instead of behind them.
In 2006 I got a 2% raise. Last year nothing. I do get my healthcare premiums paid because of the plan I chose, but I pay 20% of costs after deduction. If I stay healthy not a problem... but this year I had to have emergency surgery and just finished paying about 4,500.00 in out of pocket expenses. Husband got a 2% raise this year, first one in 5 or 6 years.
My job (healthcare) had frozen salaries for several years. Then the annual raise went to 3%. In the last two years, it was 7% for RNs, because they were having trouble attracting or keeping people, with this place so close to downtown hospitals. Once people get vested in the fat old-fashioned pension plan (five years), the argument for staying gets a lot stronger, even if the pay isn't competitive.
Certainly utilities and property taxes keep going up far more than 3% a year. My portion of health care premiums certainly goes up more than 3% a year.
I don't know quite how the inflation rate is calculated. For instance, I think I read that the price of certain items is considered. I might only buy one refrigerator in my whole life, etc. The price of services is the thing that you can hardly avoid or fudge on. It's always services, in my experience, if your house payments are stable.
My job (healthcare) had frozen salaries for several years. Then the annual raise went to 3%. In the last two years, it was 7% for RNs, because they were having trouble attracting or keeping people, with this place so close to downtown hospitals. Once people get vested in the fat old-fashioned pension plan (five years), the argument for staying gets a lot stronger, even if the pay isn't competitive.
Certainly utilities and property taxes keep going up far more than 3% a year. My portion of health care premiums certainly goes up more than 3% a year.
I don't know quite how the inflation rate is calculated. For instance, I think I read that the price of certain items is considered. I might only buy one refrigerator in my whole life, etc. The price of services is the thing that you can hardly avoid or fudge on. It's always services, in my experience, if your house payments are stable.
Inflation, like unemployment, is skewed to underestimate the true value. A couple of things that the government does to hide true inflation is to exclude food/energy (which some of us already knew), but also to use geometric mean (in effect lessening the average value over a standard mean if there are values that might "throw off" the calculation) and product susbstitution (if food was included and filet mignon and gruyere cheese rose too much, you'd substitute it for hamburger and kraft slices to simulate product substitution among consumers). These tricks have helped to make inflation appear MUCH lower than it truly is. Unfortunately, that affects the calculation of the GDP, which I believe is MUCH lower than the government states.
Additionally, I don't think that the CPI will note the increase of interest rates among credit card holders. Ironically, this is the end result of many of whom are the same people who enjoyed products that lowers the CPI (Plasma TVs and other high end electronic consumer goods). Many can't afford the $1K price tag, but they can certainly charge it and pay for the product twice or thrice over. Admittedly, this part can be complex but plays a significant role because that TV now cost significantly more based on the manner it was "purchased".
When dairy goes up by 20%, one can hardly believe the government accurately reports annualized inflation to be 2% overall.
I doubled my salary between 1998 and 2008 via changing careers and changing jobs 3 times in those 10 years. In addition, I moved we moved to a small place to come out further ahead. I agree that if one stays at a company, in the same job, it's nearly impossible to come out ahead with inflation. A annual 3-5% salary increase typically won't cut it unless one makes lifestyle changes.
Was getting 3-5% raises from 1999-2006 (it was getting lower each year). Employer said no raises this year. I quit and got a new job for 6% more, so I got my raise anyway.
I used to think there was benefit in being a long term employee somewhere, but oftentimes it's way more beneficial to jump around from job to job, staying 2-3 years at each in order to get the proper increase in pay.
As soon as you realize they are bringing in new people for more than what they are paying you, the long-time employee, it's time to move on.
Sometimes going from job to job with increases may work out, but there is the little thing called a Pension, and that is tied to years of service and has vesting time, often 10 years. But more years you have is generally more you get as it is maybe 2% per year to maximum of 50% of salary at 25 years or something like that. All places differ - could be 1.5% per year for so many years to max out the pension. Some are so piddly that you might as well move on. Social security is not enough to live on. Good if they have 401-K's and with some matching, though times like we've just had can take the bottom out of that, but so long as stocks still hang in there, it will come back if we can wait long enough. Some allow investments into bonds, too which might not be as volatile as stocks.
You may miss that pension by moving so you have to decide at some time to stay put where they do have a decent pension plan. Need to look at all those factors. I retired with half my salary (and can sometimes go before can get social security - I did by a couple of years). I had a union though and that helped to increase the wage well, as did my doctorate degree (they helped me get undergraduate and the doctorate (JD). Was 50 by time I finished school and worked 10 more years as professional instead of secretarial, but added to my pension that way. Just something to think about when you float around for salary increases. If you can get an index where it goes up each year then you might go faster, but generally has to be negotiated. Good luck.
I recieved a small 2 dollar raise this year ! But I noticed I am struggling
alot more every year .Living in California does'nt help high taxes,
high rents ,and high cost of living ,and Gasoline costs have doubled from 2 years ago . Also food and neccessity costs are soaring thru the roof !
Everything is going up ! But my paycheck cant keep up!
Is there no end to inflation ?
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.