I was visiting a close friend up in Burbank a few weeks ago and we got to talking about his professional success, how he is moving up in the company and surviving the L.A commute to and from work. He is commuting 15 miles each way but it takes him an hour to get from point A to point B, and another for the trip home. We started chatting the price of oil per barrel and hitting that 100$ mark and how that was going to effect the economy and how that impacts his next big purchase — a condo in downtown L.A.
While these two factors aren’t directly related, the price of oil per barrel hitting 100$ and housing costs, they are linked by our economy. As one area slumps, so does the other. The cost to fill up the ol’ gas tank hurts in many ways, including transportation costs and processing of building goods which effects the overall profit a company makes in producing and developing a project. This ends up effecting you the buyer.
Gas prices in California are high, the cost of living is down right exorbitant and surviving is getting tough, but there is a light at the end of the tunnel — While thinking about the great depression and periods of recession within the last 100 years in the United States it is evident that relief can come from many subtle changes in governing infrastructure and international trading changes. The key to success may lie in accepting that this is a hard period for our economy and making smart adjustments with our finances will get us through this downward sloping trend.