How Not To Handle Rising Prices

As you've no doubt noticed, the price of gasoline has soared recently. We're now beginning to see the trickle-down effects of this in other areas. Comparing prices from this time last year to now:

• A loaf of bread costs on average seventeen cents more.



• A gallon of milk costs on average thirty-one cents more.



• Twelve ounces of ground coffee from Starbucks? A dollar more.



• A half-gallon of orange juice costs on average sixteen cents more.



• A pound of ground beef costs on average forty-seven cents more.



• A five-pound sack of potatoes costs on average thirty-eight cents more.



• A pound of chicken breasts costs on average thirty-nine cents more.

It adds up fast. And for the record, nationwide a gallon of gas costs on average $1.03 more than at this time last week. In California it's $1.12 and nine-tenths.

Since not eating isn't an option, and since unlike the federal government's actions simply printing money isn't legal, the question becomes how to handle this additional strain on our individual budgets. Most of us can trim back here or there. But when you depend on your car for the job, making driving less not possible, you cut elsewhere. You don't go to that movie. You don't buy that new outfit. You skip that ballgame.

You don't get that insurance coverage.

It's easy to say "well, you're an insurance company; of course you're going to tell people not to skimp on their insurance." Which is true insofar as we are an insurance company. However, let's take a moment to look at who actually pays the cost for inadequate insurance, or none at all.

Let's say you're in a car accident in California. You have insurance. The other person doesn't, even though the law says it's mandatory. Hopefully you have UM (Uninsured Motorist) coverage as part of your auto policy. If not, good luck getting any kind of compensation, be it for repairing or if need be replacing your car. As well as repairing you and/or your passengers. No insurance carried by anyone can handle replacement of same.

Next, take a look at your bank account. Can you afford to replace your residence, and everything in it, out of pocket? If so, congratulations. If you're like the other 99 44/100% of us, the answer is no. Might want to think twice before low-balling yourself on coverage.

Yes, times are tough and money's too tight to mention. However, in trying to budget things so you don't come up short, don't short yourself.