The general price level in Finland rose by 7.8 percent year-on-year during the month of July. The last time Finland's inflation rate was at a similar level was during the 1980s. The latest increase follows a general trend of inflation being accelerated by the lasting economic effects of Russia's invasion of Ukraine. source
Sure, the inflation rate is being accelerated by the war in Ukraine, but I am yet to see any adequate mentions of the cause of inflation - economic mismanagement at the grandest of scales.
In July, according to Statistics Finland, the biggest increase in consumer prices compared to a year ago was the increase in the cost of electricity, petrol, diesel and renovations of single-family homes.
I don't drive much, but that last one is definitely having an impact. For example, the cost of the ceiling panels that we bought last year and will finish the kitchen and office with, have increased by a "paltry" 65%. The cost of basic structural wood has increased even more, as to has gyproc sheeting, in some cases, by 200%.
I am glad these are the last two rooms for now.
Next "house" thing would be the basement, but in order to heat and finish that, it is likely going to take around €100K - so it is not on the near-term agenda.
Come on crypto.
While we are sinking a fair amount into this house, we are doing our best not to over capitalize on it and, we are trying our best not to take on any more debt burden. With such large amounts at specific times, it has been hard, but we have managed to spread the purchasing out over the last year and contain our lifestyle somewhat in order to enable it. While a lot of people don't mind holding debt (especially when the interest was lower), I am still a bit "old school" and don't like the risk of it. It frustrates me that I still have a credit card debt, but it is quite small now, so I will be glad when it is soon paid off.
"Financial mismanagement"
Yes, the governments are guilty of it, as are the central banks, but at least for me, I am not innocent in the part I have played in my own economic circumstances. If I could go back in time, I would do a million things differently and have several million euros to show for it, but my own naivety, incompetence, financial illiteracy, impulse control and instant gratification mentality also may have played a "minor" role in the outcomes.
I definitely don't come from a family that led by example on financial hygiene and best practices and instead, it was quite the opposite. So, while I knew that I needed to do differently, I didn't know what that "different" would be and I didn't have the right internal motivation to find out for myself. While I might have been a victim of poor economic conditions in the home, I was a victim of my own actions outside of it too.
Self-inflicted financial pain
These patterns aren't elementary to change. At least in practice. For me, the pathway has been long and the struggle constant, as my own behaviors are engrained and feel very much "right" to me, since they have been habits for so long. It is similar to my diet, where I struggle with a sweet tooth and breaking that sugar addiction takes intention and energy - and once an addict, always an addict.
Looking at financial behavior as a type of addiction might actually be useful, as it can help us acknowledge there is a problem, identify causes and triggers and then start "stepping" along the path to recovery. Along the road, slips are to be expected and accepted and as long as there is forward momentum and progress, the changes will start to compound positively, realigning practices for better outcomes.
In my case, reallocating funds by replacing the target with something more useful has been beneficial. What this means is redefining what I value, swapping out what has a negative return with something that either could be seen as needed or an investment that generates an ROI. I like to shop, but instead of buying useless, I spend it on needed and the "luxury" doesn't mean disposable, it is items like nice lights, or a better worktop counter for the kitchen. The lights even have a decent second-hand resell value, and we will likely buy secondhand to begin with.
By doing this, it means that I can still feed my addiction, but what I am filling it with has more value and, it has a "higher value" also, so it takes longer to collect the funds between purchases, slowly eroding my instant gratification desires.
This might not work for everyone, but my point is that pretty much all of us, can do something to start improving our lot in life and even if it doesn't seem like it will do much in the early days, long-term, a lot can happen. We aren't geared to look long though, as we are programmed to want what we want now and fill our bellies when we can, even if it is going to cost us a lack of food later.
Evaluating where we are now, what got us here and planning what we can do about it might not sound like fun (it isn't), but what I have found for me is, once on the path of improvement, it is the same feeling as improving any other skill also. There is the feedback loop of trial and error, evaluation, reattempt and improvement. And, there is the flow experience on offer too, because as I improve, I keep pushing out the boundaries of the challenge. Hopefully, I will be able to say,
I'm competent.
I will never be an expert at this, but if I can significantly improve my own processes, I can at least start to benefit from the benefits over time and perhaps, it will make a difference down the track to the outcomes for both me and my family. And this is the other part of the buying for value, as rather than only meeting my own desires, refocusing what I buy and when, also adds value to those around me, as they will use these things too. This essentially "cost averages" the purchase.
What I do know right now though is, I have a lot more to learn.
At least though, it isn't quite as "back to the drawing board" as it once was.
Taraz
[ Gen1: Hive ]
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High prices everywhere, we are seeing petrol at almost $2 a liter here and food is creeping up as well, at least hive has moved up too.
I'd be happy with 2 dollars. The most I have paid is around €2.60
At the moment, it is "cheap" at about €2.20
That’s crazy, how about a loaf of good quality sourdough bread? It’s gone up to $6 here
It’s good to be able to admit that we have a lot to learn. I think some of peoples biggest issues is their ego in that they know how to do such and such, and don’t need to learn more. Even the people who have untold millions or billions of dollars need to continue learning, their luck worked once to get them that much, they have to keep it up otherwise they will fail and failing from that height is a lot worse than it is from where you and I would fall from lol.
I find it interesting that we’ve been in these places before economically and people will say “the worst since 1980” or something but then fail to look into what happened back in 1980, like poor money management and all that.
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I am glad some of them don't - if they did, there is no hope of distribution!
History repeats - especially economic history. There are laws in place, yet so many times a government or central bank will believe they can beat them.
First and most important requirement to personal and financial transformation is the will. Once we can take steps, no matter how little, things quickly fall into place
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I get the sense that while we get more stubborn in some ways, we are becoming far weaker willed when it comes to our ability to control ourselves.
I wish we had %7.8 inflation rate as well. Formally it is %80, informally perhaps %200.
It seems it is going to be like that;
We will be able to just feed our stomach. You are in profit with what you have bought before such as house, car, laptop, smart phone. I can add cheese and beef to this list as they have been constantly increasing in my country.
Yeah, it is insane there!
If it continues much longer, many people won't even be able to feed themselves.
You Got a mindset of dealing with hard situations like a gentleman.
You ain't old school being in debt or taking risk is something not Good tho inflation is really a big mess everywhere i go, I see record breaking inflation.
Good thing's you are aware of it and willing to make better decisions which will be a Good thing in near future.
I'm still learning more from you and really inspired with the way you think!
Let's see how it goes. Hopefully I survive long enough that it matters :)
My best wishes for you 🥰.
I agree so much with your addiction explanation. Our spending habits are also addictions. We cannot stand up to change it until we realise that the problem exist. After realizing, determination is important. After determination it is crucial to keep on progressing on the chosen path. They speed may be slow. We at times may fall but we shouldn't stop and keep on improving.
I heard somewhere Wealthy is the person who keeps his expenses within his earning. That's the truth. I have seen people who increase their expenses as soon as their income increases. Then they are always crying for difficult financial conditions.
About debt, I have the similar view. I think being in debt is the burden that never let us be free.
It is the only way to accumulate, isn't it? Do it for long enough and expand it consistently, it should work.
True. It is the only way. Consistency matters
Inflation is everyday and things are been hike by the moment.
Once and addict is always an addict, i may not totally agree with you,but i love the part where you channel your addiction into something valuable, that a lesson for everyone to learn what you see you can't stop, try replacing it with things of value.
Thanks, you have enlighten me today
Have you ever been addicted to something?
Yes
Only one thing I really wished I did differently: mine the shit out of Bitcoin since the genesis block.
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lol - You would only have to do it for a few days and then....hold.
Petrol price 1.6 $ltr
Where is that?
Indeed things are becoming unbearable as we noticed inflation in prices of items but we believe everything will be fine soon. Greetings
What is this?
Wow. It's surprising to see that inflation is not only in Nigeria. Honestly, it's best we brace up ourselves and find our own way to get an income. Find out ways to manage our finances by budgeting and weighing our expenses with our income. We have to survive anyway. That's the goal. Adjust quickly and survive!. @taraz @i love your choice of words. It amazes me
If I could go back in time, I would do a million things differently and have several million euros to show for it, but my own naivety, incompetence, financial illiteracy, impulse control and instant gratification mentality also may have played a "minor" role in the outcomes. — everyone one way or the other , at a particular point in time feel this way . It’s just normal to err as humans in the financial world which is normal , it becomes a big problem when one doesn’t learn from the already made mistakes..