Inflation rises while many wages can't keep up; Michiganders feeling the pain

Inflation hit 7.5% in January
Posted at 10:17 AM, Mar 09, 2022
and last updated 2022-03-09 18:30:22-05

SOUTHFIELD, Mich. (WXYZ) — If you feel like you are spending more and more but aren't getting more, it is not your imagination. We are seeing the highest inflation in 40 years.

Then Russia’s war in Ukraine shook up the energy market, sending gas prices soaring and increasing costs even more.

It raises the question: How can we all deal with this?

LaGore says he is feeling the stress of increasing prices.

Michael Masserant is an instructor at the nonprofit Retirement Education Foundation. He says times of inflation are challenging because most people will find their wages don’t increase enough to keep up with costs.

Masserant says in January, the U.S. saw the highest level of inflation in about 40 years when we hit 7.5%.

He showed 7 Action News how he teaches his clients to budget, have an emergency fund and then invest in funds that can be accessed in different circumstances.

“Make sure we know what we are spending. We are making an emergency fund and don’t make drastic changes. Typically, drastic changes during these times are not the things we should be doing,” Masserant said.

Paula Swain said she's been cautious about where her money is going. Swain is a financial planner at the Financial Center for Women in Southfield.

For people who did not prepare for these tough times, Swain says the first step is creating a budget.

“When you start to work a budget, you will see where your spending can be cut,” Swain said. “If you have to, get a part time job in the meantime until things level out.”

There is no easy answer.

If you are hiring, Lagore says he is looking for a new job to help him take on inflation with a starting time after 7:30 a.m. to allow him to care for his son.

“Something in assembly or in a factory. Something close to home around Trenton that will work with me with my hours,” Lagore said of what he is looking for.

When times get tough, we can learn from each other.

If you have found an innovative way to get by in this shifting economy, 7 Action News reporter Kim Russell wants to hear your story. Email her at KRussell@wxyz.com.