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“Lifestyle Shrinkage” is a very real problem and it is going to get much worse in the coming years. What causes Lifestyle Shrinkage? A number of factors contribute to this growing epidemic, including:

• Rising Energy/Food Costs

• Stagnant Wage Growth

• Outsourcing

• Job Flight

• Globalization

• Rising Healthcare/Health Insurance Expenses

• High Debt on Personal, Business, and Government Levels

All of the problems listed above are conspiring to lower your purchasing power and ultimately diminish your standard of living. The symptoms of Lifestyle Shrinkage do not all appear at the same time and may include any or all of the following:

Insomnia: As debt begins to grow because our wage growth is not keeping pace with the cost of living, we start having problems sleeping through the night.

Endless Cycle of ‘Tightening Belt’: One of the most natural responses to Lifestyle Shrinkage is cutting back on purchases of so-called “luxury items”. Next, we will start buying cheaper cuts of meat at the grocery store, cutting coupons, scaling back on leisure activities and potentially even a reduction or end to health insurance coverage.

Depression: As we start to lose hope that we can ever escape our growing debt, depression begins to set in. Antidepressants are the number one prescribed drugs in the world with millions of prescriptions filled each and every month…

Clinging to “Bad Jobs”: We would all love to just “fire our boss” or quit that terrible job—but we can’t, can we? Even a terrible job working for an evil boss for $35,000 a year is better than taking a job at the local grocery store bagging groceries for $10 an hour! That's why we continue to tolerate crap like: reduced health insurance benefits or rising costs; a 1, 2, or 3% annual raise when we know it doesn't even keep pace with inflation; long commutes; and abusive bosses.

I'm not some Nobel Prize winning economist and I certainly don't have an MBA—but does anyone else think this globalization and free trade crap aren’t working? Between skyrocketing gas prices and rising interest rates—it is hard enough for two people to raise a family—so how on earth can a single parent hope to keep up?? I don’t care whether you call it Lifestyle Shrinkage or just plain scary—but something is going on out there and our world is changing before our very eyes!!

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