The writing is as a plain as day on the wall, and it says that the new year is shaping up to be the “year of inflation” from my perspective, a lone soul living in a small village on the outskirts of Vancouver, BC. We all knew that government was going raise the income tax and implement other payroll punitive measures on us working class types eventually, and that most services too are mandating increases in costs as well. But, the triple whammy is fossil fuels, electricity and food. Adding it all up, I estimate that my cost of living is going to jump up by 11 percent for 2012!
I have been planning for this for the last year. I can pass most of these costs back to the consumers and other sources of income that I generate. I have no morals about increasing my costs as well, in the business sense, as long as I know that the government is dishing out the same punitive measure to the rest of the country equally. I am also in a great position where I have no ties to any financial institution bearing any encumbrances, all thanks to my “Cut Out the Middle Man and Parasite” initiatives back in 2004. Lastly, no dependants, or payouts in terms of creating my Sue-ability Scale to the lowest point possible.
I am ready for the 11.2 percent jump by ICBC (Insurance Corporation of British Columbia) and the $20.00 per month increase in MSP (Medical Insurance Premiums) as stated by CBC News Dec 30th, 2011 in their story called, “2012 to be More Expensive for BC Residence.” I am also ready for the ever growing food and fuel costs as well as I have changed my buying patterns to reflect the souring economy. For my vehicle needs, driving that extra few kilometres to fill up with lower taxed gasoline is paying off in the long run. Also, buying from local farmers and markets has also started to pay off, although it is hard to avoid shopping at the big-box retailers for the savings.
The message for 2012 that I am giving is one of money restraint, and fiscal caution. Do not make that large money purchase of which you will have to finance from a money lender, if you saved the money then fly at it. Save what you can, be it pennies, twonies or fifty bucks here and there, but have that liquid pool of cash close at hand, and spend it when absolutely necessary, unless you have lots and see the sliver lining in the clouds. The “Cash is King” economy is flourishing at my work as I am starting to see a mild upswing in cash transactions. This is a sign that I see as people are starting to, either bypassing their debts with their financial institutions, or they are finally working in a cash economy, but cash seems to be back in style again. However, I still see credit card buying as the number one method of buying, which is more than likely fuelling personal debt like we have never seen before becuase I highly doubt that most Canadians are using these credit devices as they were meant to be used. Also in my message, I encourage people to shop on-line becuase the deals that are available from down South in the U.S. are incredible. “Shop and Save and only buy what you need,” is the message that I am sending out for 2012.
I consider myself a low income earner. I do not claim to be that all knowing economist and prognosticator of Doomsday Sayers. I only know where I stand, and based on this, I can say with certainty that many who are in my income bracket are feeling the same way too.
Moreover, there is one pressing issues that I hate above all else, and that are parasites, be it government, Banks or commerce. I really see the need to think in ways that means changing my lifestyle and critically thinking my way through long term money planning to avoid, or rid myself of those parasites. They make me itch and scratch too.