What now?

People lived high on the hog for far too long. Now that markets have dropped and are staying low, the only the bankers and brokers are really making any money. Everyone else is wondering what will happen to them next week, because this week they avoided being 'laid-off.'

Now that things are tough, everyone is more concerned about money. The cost of living is on people's mind, even if they wont say it out loud. So, what exactly is the cost of living?

I guess that depends on who you ask. The government figures it one way while news outlets, well I can't say where they get their data, but they say another thing. Here are some categories I have used:

• --Rent/mortgage (got to live somewhere)


• --Transportation (got to get around, at least to work and home again)


• --Phone (one with basic service only-it's a must to get a job)


• --Education (to keep a job or get a new one, can't do without)


• --Food (if people eat more at home the cost is lower, but I figure 50/50-home/eat out)


• --Clothing (or you get arrested and need nice cloths for the job)


• --Toiletries (I think you know why this one)


• --Utilities (the basics, nothing fancy)


• --Home furnishings (again the basics-someplace to sit, tables, bookshelf, etc. - nothing fancy no kitsch)


• --Appliances (can't cook without a stove and can't keep food without a fridge)


• --Electronics (only those that are needed, no extras or fun things-no game boy)


• --Vacation (can't live without some R&R, it makes people more productive and reduces stress and less medical costs! - some employers are stupid when it comes to giving people time off, they just don't get it value or purpose.)


• --Medicine (all the things not covered or have to pay extra for)


• --Retirement funding (since employers are pushing it onto employees to do their own doesn't mean they shouldn't cover it)

Yeah, a lot of categories, but as you can see, I am only looking at what is needed, no extras or wants. I figure cost of living in two ways: 1) what it actually costs plus 15%, or 2) if minimum wage if had kept up with the cost of living. Either way, both numbers are very close. Ready? It costs an individual $68,000 to $75,000 a year to pay for everything, and I am not talking extravagances here or in any way with a lot of extras, like cable TV or fancy clothes. That's right, around $70,000 a year!

People making less are not only struggling, but not making it. If they get sick, they are more likely to get the worst care, or none at all, and poor people are more likely to die because no one will treat them. As for retirement, maybe some people would still remember the news stories of some elderly eating cat food, living without heat and a lot of other things. Well that's what happens when there is no retirement planning and no money to fund it. You've got to thank God we live in the U.S. where we are all told we have a chance at the “American Dream” but few actually realize it.