Designing your New Normal 5 - What's your Inflation Rate?
Aug 16, 2021Hi. I’m Minna, Co-founders of Foco Academy, functional health and wellness coaches. As the world starts to wake up to the new normal, a lot has changed so we are also tweaking the focus of our messaging on how to get ahead in this new environmental, this new world. We are still focusing on time, health, and relationships and we are still utilizing the same set of success principles.
I've been talking about how to prepare yourself to be able to actually define your new normal. We've talked about how you gotta put yourself into a state of positivity and how you gotta train you brain so that you have a clear mind to think for yourself.
Now let's talk about getting to know you. For you to map out a path to your destination, you first need to know your starting point. So first, let's talk about the economy.
We rarely talk about finances and the economy, but it is an essential part of our lives and it will have a heavy influence on how you define your new normal.
What has the biggest impact on the economy? Businesses, right? Large and small businesses. And over the last 16 months, many businesses are gone. They either declared bankruptcy or downright closed their doors. 24 hour fitness? Bankrupt. Ann Taylor, Brook Brothers, GNC, Victoria's Secret, J Crew, Neiman Marcus, Pier 1 Imports, Hertz car rentals. Brands that we are familiar with, local businesses that we used to love, many of them were either bankrupt or closed down.
Now, bear in mind that declaring bankruptcy is not the same as closing down. I know because we've been there. A combination of bad business decisions, lost income, bad investments, trusting the wrong people, and poor accounting practices has caused us to our own bankruptcy years ago.
It took a lot of massive action, grit and determination to pull ourselves our of the pit, and went from bankrupt to debt free. So it is possible. We learn from our mistakes, and move on. The path was tough. It's like driving a car on an unpaved road filled with rocks ands tones. It was extremely uncomfortable. But eventually we got out of it and got back onto paved, smooth roads.
I've seen some statistics that 8 out of 10 billionaires were bankrupt at least once. People like Martha Stewart, George Forman, even Walt Disney were once bankrupt and they managed to not only recover but their achievements and impact went way past where they were. So don't look down on the businesses that were bankrupt. They could recover.
But let's get back on track. Given that many businesses close down, the ripple effect is massive. Commercial properties are suffering. You can see for yourself when you drive around town and you see vacant storefronts, empty offices and warehouses for lease.
What about the business that are trying to survive? They have to do what they need to do to stay afloat. Which means running a leaner operation with fewer people, and raising prices.
Now, if you watched the news, they will tell you that the inflation is somewhere around 2%. That is the biggest BS I've seen.
The media has painted a pretty glossy picture of the economy. It's like putting a nice big screensaver in front of your window. You see a shiny nice picture that makes you feel happy. But if you put away the screensaver and actually look out the window, the picture might surprise you.
Let's look at your inflation rate. Your bag of goods. Look at your groceries, eggs and milk, fruits and vegetables, and also the gas for your car, toll charges, parking fees, electricity, gas and water charges, pizza, burgers, and the restaurants that you go to.
Compare what you spend today on your bag of goods to that same bag of goods 16 months ago. It is safe to say that the cost of your bag has gone up at least 10%-20%!
So, unless your income has grown at least 10%, that means your spending power has gone down. And the trend is that prices will continue to go up, you will be paying more taxes, and your ability to spend will continue to go down.
You might say that money is not important to you. But you do need to have an inflow of money to survive. Those who says they don't care about money, that's because they are already financially stable.
So when you think about your new normal, think about how much you need month to month, year to year. Think about stuff you want to have, places you want to go, things you want to do, charities that you are passionate about, and people that you want to take care. All this costs money and it is how you spend your money that makes you happy.
So, think about how much you need to support the lifestyle that you want, and then we can talk about how to actually get that lifestyle.
Until Next time Love What you Live and Live what you love
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