It’s interesting in the last while I’m actually experienced some personal inflation that I noticed. Typically inflation changes are so slow that you don’t really notice them. Yet strangely enough most of the changes were from our choices and not just energy costs.
I recently had to start paying for a bus pass to get to work ($57/month), I had increased expenses for our second child ($15/month life insurance for my wife and I, and $60/month diapers, wipes, etc). Then my natural gas provider gave notice they are increasing rates in the fall by 40% so I estimate that will cost me about an extra $15/month (rather than the predicted average of $35). I love my new furnace and my previous spending on caulking and insulation!
All told these changes represent about a 5% increase to my baseline spending. Bad for saving when my wife is off, but all in all not too bad in the long run (unless 5% personal inflation continues every year). The good news is I’m getting a raise today, I don’t think it will be 5% so I’m likely losing ground for the year. So all told unless the markets go up hugely I could see us falling short on my 2008 net worth goals.
So rather than getting depressed about not making my goals. I’m going to keep working at it and see how close I can get. After all in my mind there is a big difference for trying hard and not making a goal versus giving up on a goal because you think it is going to be too hard.