Personal Finance Advice

Americans are finding it harder and harder to save money these days. Recent data released by the government show inflation rates as stable this year, but some economists, as well as many consumers remain skeptical. Keep in mind how falling prices in the housing market can skew some of these numbers and make the picture look better than it really is.

Food prices have risen at their highest rates in nearly 30 years. Energy prices continue to skyrocket to unprecedented levels. These changes are having the biggest effect on the majority of Americans, those who are in the lower and middle classes. Many are starting to feel the pinch in their wallets while at the supermarket and when they hit the gas pumps. And with winter fast approaching they can also expect a jump in their heating bills.

Some experts warn that the situation won’t improve anytime soon and that it’s not just a local problem but a worldwide phenomenon. Uncertainty in world oil production and increased demand as more and more third world nations become industrialized may lead to a world energy crisis in the next few years. Crop production is at an all time high but there has been a sharp surge in demand in recent years as a growing percentage of it is being shifted to the growing ethanol industry, thus leading to higher food prices.

While many economists believe it’s not serious problem yet, they do caution that if the situation continues, it could have an adverse effect on future economic growth. Nobody needs an expert to tell them that their paycheck is starting to look smaller and smaller these days.