A recent article in MSN Money reviewed a report issued by the American Institute for Economic Research (AIER) on the EPI Index, an index of everyday prices. The EPI index measures the changes in everyday prices people pay for food, gas, electricity, child care, and personal care items like shampoo and toothpaste. These expenses approximate 39 percent of total household spending. The EPI index does not take into account larger expenses such as mortgage or car payments and purchases of appliances and furniture. AIER reported that, using the EPI index, inflation is at 8 percent. This is a much higher rate of inflation than measured by the CPI Index (Consumer Price Index) which measures inflation at 2.9 percent. The AIER report explains that the rising costs of fuel have a significant impact on the EPI index. Gas and transportation costs alone rose 21.1 percent this past year ā even more so recently as gas prices exceeded $4.00 per gallon.
Whether you use the CPI index (2.9 percent) or EPI index (8 percent) to measure inflation doesnāt really matter ā the cost of living is rising! How do we battle these rising costs of living with fairly fixed incomes from retirement funds? This column has covered a number of cost-saving strategies to assist in the war against inflation, but lately I wonder if we are winning the war. Iād like to at least think we could win a few battles along the way. If we can manage to save a little on the day-to-day expenses, we just might have enough to splurge on our favorite pastimes. Two pastimes that Sue and I really enjoy are eating out and weekend get-a-ways. Thanks to groupon.com and local.amazon.com, we can better afford these adventures. Both of these organizations provide heavily-discounted ācouponsā for just these types of activities. With discounts in the 50-percent to 75-percent range for ālimited timeā offers, these promoters provide a substantial savings. What makes these two sites most interesting is that they focus on your specified areas of interest. Whether restaurants in the area or distant get-a-ways, they will match their offerings to what appeals to you. All you have to do is register at their websites and you will receive daily notifications of great deals with you in mind. There is no cost or commitment involved to join. Join us in the battle against inflation.
Keep those letters coming, folks. Send your ideas to: The Frugal Forum, P.O. Box 693, Huntley, IL 60142 or by email to: thefrugalforum@gmail.com.
