Wow... Times Are Toughby Debbie Vasen | More from this Blogger 12 May 2008 05:47 PM You simply cannot pick up a paper without some headline about the real estate market's bursting bubble, the failing economy, gas price increases or worse. Basically, as the media presents it, our nation's finances are in the pits. No wonder so many of us are also feeling squeezed. Maybe you are worried about your job security if the company you work for is struggling in this economy. Maybe you have your house on the market for less than the amount you owe on your mortgage. Or, maybe you simply feel like you don't have enough to make ends meet. Given the current economic recession, this is no surprise. Combine our nation's woes with the rising costs of health care, child care, housing, gas and groceries, and anyone will feel the pinch. One of the main problems is that the cost of our goods and services are increasing much faster than our incomes. I know some companies that give a "raise" each year of 3 or 4 percent. However, when the cost of living goes up that same percentage (or higher) each year... then that is not a true raise. Many employees are working harder for simply a cost of living increase. Because, if you don't get that raise... then you are actually getting a decrease in salary. Knowing this, you probably cannot directly change the cost of living increases or your company's pay scale. Nevertheless, you can begin to understand how this affects you and your budget. Don't assume that raise or bonus can be used to a fun vacation. It most likely will need to be saved for the increase in your expenses down the road. Take into consideration the larger picture. How does all of this trickle down to your own household's budget? Related Articles: Learn more about Debbie Vasen  Debbie Vasen is a published web content editor and writer, as well as a freelance writer for various print publications. In addition to blogging at Families. Relevantmoney tags User Comments No comments on this article yet. Be the first to comment! Community Tags economy, falling income, recession Discuss this article
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