The cost of living is forcing people to make choices
It's getting crazy out there.
Life is getting expensive out there.
From the cost of petrol to the cost of groceries it's all on the way up.
The only two things that haven't gone up are wages and crypto.
Hive being the only exception to the rule this week.
IT's getting hard to stretch the money out all of the way to the end of the week.
Especially for the poor souls who were living off crypto where everything has gone up but their budget has gone down.
That has really tightened the budget.
But it's not just me. It's across the board.
I can see it with all of my friends and family who are now having to make choices that they thought were a thing of the past.
People earning 50k a year that are reverting to student life styles trying to make it to the next paycheck.
I though that the days of predinking in the house were long gone but we are gone back to it. When going out for dinner and drinks costs €300 it's gone too far.
You can buy a bottle of wine and a pizza for twenty bucks and turn up to the pub happy. After that it's a cheap night.
but in all seriousness it's bigger than that.
We tried to book a family holiday for the summer in a decent resort and they wanted almost 3K. Just for the accommodation before we had a bite to eat. that's crazy money for a family of four. Instead we booked an airbnb apartment by the beach for €500.
The whole trip will cost under €1500 and a lot cheaper than the branded chalet.
It's not just me.
My friends are all telling us the same stories.
Cutting down on driving.
Driving home form weddings.
Skipping a lot of events.
Focusing on priorities.
Cancelling tickets.
We are going up to Dublin on the weekend and couldn't even afford a hotel for the night. Your looking at €500 for one night.
Just one night, where you will fall in from the pub. Rest your head for a few hours. Have the breakfast and leave again. It's madness.
Luckily we have some friends up there who will put us up for the night but we are going back to college living.
I have other friends who are going to weddings and driving home at 2 in the morning to avoid paying for a room.
It's just too much on top of everything else.
Decisions have to be made.
My biggest fear is for those people who have paid way too much for houses over the past couple of years that were way above the odds.
They made the choice to take on huge mortgages when everything was closed and did the math on repayments but that was before everything went up.
My fear is that they don't have the margins to afford all of the extra cost and will fall behind on repayments. Then houses get seized and the markets crash as bad debts pile up.
I think that we will see it happen over the next twelve months as cost continue to spiral and kick of another crash.
I might be wrong but i doubt it.
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The economy is in a bad state rn, we can only hope for the best and have it in mind that tough times don't last, tough people do. For me it's about surviving no matter what.
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Interest rates are rising and the residential market is teetering. But rental prices are nuts. No idea about Ireland, but in the US very, very little affordable housing has been built for years now. McMansions everywhere.
I feel lucky that we refinanced our mortgage a while back at near the bottom of the interest rate cycle. Not much we can do about gasoline and food prices, other than expand our garden.
Paying $500 for a night is absolutely outrageous by the way and I'm saying so because the risk of also driving all night to avoid paying for a hotel is also crazy. What people do to prevent the rising costs is absolutely crazy.
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Im seeing the same things and actually thinking about them. I realized that my "normal" lunch in the restaurant didnt need the drink anymore and all travel plans are cancelled.
I did notice that Delta Airlines offered $10,000 to people to get off an overbooked flight so travel might actually make some money!
But you are exactly right about everything you've said and people are mad about it. But in general people really arent mad at what they think they are. Maybe it is a positive moment and people will start understanding the drawbacks of our system.
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The economy has never really fixed the supply chain issues and the governments suck at fixing the problems. It is really tough for everyone and choices are only going to get harder in the short-term.
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What you mention is true, we all in the crypto world (at least, everyone I know) are adjusting our budgets as much as possible to withstand the current market situation.
Speaking only about my personal case, I have had to strongly lower my level of expenses in all senses, from outings to bars and restaurants to entertainment trips (to the beach and to tourist sites of interest). And regarding my personal and family living expenses, I've also had to adjust some specific things.
Lets hope that the current market cycle ends soon, and also letss hope that we have learned the necessary lessons so that the next time the bearish scenario arrives, we will be better positioned and not have to modify our lifestyles so much.
Good post. Thanks for sharing. Greetings.
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Thanks to governments for engineering such a terrible global phenomenon
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