1980 had to be the worst year for inflation rates in the last 100 years. They were over 10% and some months were over 14%. Home mortgages rates were over 18% for fixed and lots of home sellers were taking back a note at 12% -betting that rates would come down which they did a few years later. How do I know all this? I lived it.
It was extremely difficult to comparison shop before the internet and people would go from store to store with the coupons they gathered out of the newspaper to get a better deal on eggs, or beef or paper goods. You had to pay cash for everything, so if you didn’t have enough money to buy a full tank of gas, you would fill it up on payday.
We didn’t know to complain because our parents had experienced worse going through the depression and WWII. At least we could buy butter and although gas prices had gone way up, there were good Union jobs and even opportunity for women to get jobs other than as secretaries, teachers or nurses.
So, what can younger folks learn from the boomers?
You may never see interests rate go below 4% again. Yes, 2021 may be the good old days. If you have the cash, pay for the whole thing or wait until you can. If you must make a big purchase, put as much down as you can and get a loan you can refinance if the rates come down.
Pay off your credit cards every month. Credit card debt is extremely high.
Get rid of unnecessary subscriptions. Do you really need 5 streaming services?
Look at your monthly expenditures and see if there is anywhere else you can cut.
You get wealthier by living below your means and saving every month. Put your savings in higher yielding accounts. And, make your own coffee. Sorry Starbucks. Just a thought.