Last week I ran out to get milk, eggs, and orange juice. I noticed my tank was running a little low, but I decided to  hit the gas station on my way home. By the time I got to the pump, gas was .05 higher than when I first passed by—seriously!

Sound like a familiar story?

Unfortunately, it seems that our days of low—or at least reasonable—gas prices may be over. Crude oil reached a new record high of over $125 a barrel last week.  That is an increase of 150% over the last five years; it is also higher than the oil spike in the late 1970’s that followed the Iranian revolution.

Of course, we are all feeling a painful bite in our checkbooks. The dollar is weakening, wages are relatively stagnant, and the price of everything around us is constantly rising. 

To make matters worse, go ahead and take a look at your immediate surroundings. Almost everything you see is petroleum based, from your carpet….to your fence…to your car’s tires. And unless you’re closet is exclusively stuffed with rarely found U.S-made garments, most of the clothes you own burned through a fair amount of oil to reach you. It’s fair to say that oil directly affects pretty much everything we do. Are you eating a hot dog? Oil was involved! Are you doing your laundry? Yep—oil touched everything there too.

Although I’d love to think otherwise, our oil dependence isn’t going anywhere. Even if we develop alternative energy sources (which will inevitably pose thier own set of problems), oil will  most likely continue to have a large bearing on our everyday lives.

The recent spike in oil prices has caused harsh consequences both at home and abroad. As prices continue to rise (we can’t have the oil companies’ cutting back on profits), those consequences will have considerably far-reaching effects.

Luckily, the U.S. hasn’t experienced any major food shortages yet. But don’t get too relaxed; our oil dependence has caused damage in many other areas of our lives. For example, record-breaking prices have resulted in job cutbacks and delayed construction projects.  

 As discussed earlier, petroleum is a part of almost everything. Because of severely high production costs, a record number of manufacturing plants have recently announced cutbacks and layoffs. Many loyal, lifelong employees have been kindly invited to vacate the premises and start over. My question is: How do you start from scratch after decades of service?  

 Many local and state governments have also started to cut back or delay construction projects because asphalt is—you guessed it—petroleum based. Remember last’s years Mississippi Bridge collapse? I wonder if cutbacks in construction will cause similar problems. And what of those pesky potholes we all swerve to avoid? Well, watch out! They might be around for a while.

 ****************************************

 If you think things seem bad here, remember the pain we’re feeling is nothing compared to the trials many of our brothers and sisters are facing around the globe.

 Oil has contributed to skyrocketing food prices worldwide. Of course, oil alone is not responsible for shortages. It does, however, play a large role in the harvest, cultivation, and transport of staple foods. The demand for these foods has done nothing but rise with the population and economic growth of other countries. With shortages already underway, the amount of people who have access and the means to obtain basic foods has started to dwindle. To make matters worse, livestock, who also eat a large amount of grain, have been affected as well.

 The riots we’ve been hearing about at a rising rate are a bit more understandable when the potential consequences of severe food shortages are realized.  

****************************************

 The political effects of oil are producing red flags all over the world, too.

Take Saudi Arabia, for example. While many of us are hoping to be able to afford our next trip to the gas station, the Arabian Peninsula is flowing with oil money. And, as we all know, he who has the money has the power. This means the Arabs will begin to have a large global influence in the political realm.  While nobody can know for sure what they will do with this influence, if the past is any indication, they may start to buy the loyalties of dissidents and scattered tribes.

For us, a large rise in Saudi power will result in even more dependence on the Saudi’s, their oil, and their money. The latter may be the most concerning because if the Saudi’s start to invest in global real estate markets and equity firms, many of us will have no choice but to answer to big power half a world away.

****************************************

 I can’t help but feel a little depressed every time I make a purchase of any kind. Sticking to a budget is hard enough without having to worry about prices rising hourly. Our family’s moderate grocery and gas budgets have almost doubled in the past few months. And since we don’t have a choice on these two items, other parts of our budget have been gobbled up. No more luxury purchases for us…..

Perhaps the most depressing thing about all of this is we are all helpless when it comes to oil and food prices. And it’s not like we can trade a good attitude for lower gas prices. We are being forced to roll with the punches….and there’s no end in sight. 

Perhaps the only good thing about this is we have the opportunity to prepare for worsening conditions. We haven’t been dealt such a huge blow that we can’t recover at this point. We can grow our own gardens, build up a large supply of food, and preserve oil and gas by staying in more often.

We still have the ability to plan for the future, but the time to do this is now. If we wait until food and oil prices are so high that we have to choose between heating our houses and feeding our children, it may be too late to create a good preparedness plan.

 My best advice is:

· Don’t panic! Create a plan that works for your family and stick to it.

· Start small. YOUR EMERGENCY PLAN SHOUL NOT INVOLVE GOING INTO DEBT.

· Keep your debts at a minimum, and, if possible, save something every month.

· Use your food storage as much as possible. This will keep your food and gas costs down.  

 NOTE:  Although the subject is not directly related to this entry, I can’t ignore my urge to include the following information.  

The three largest U.S. oil companies reported another record profit year for 2007. ExxonMobil announced a profit margin of $40.6 billion, Chevron’s profits totaled $18.7 billion, and Conoco took a profit of $11.9 billion. These companies have also been using much of this profit to buy back their own stock, which, of course, jacks prices up even more.

Once upon a time, in a land far far away, harsh weather conditions caused a crop shortage. The crops that were left were in short supply, and with growing demand, prices began to increase. This left many people wondering how they were going to afford many basic foods.

On the other side of the world…

Media-induced panic no longer comes as a shock to me. In their quest for viewers and readers, the media often irresponsibly incites mass hysteria.  You may recall the epidemic of Bird Flu that was rumored to kill us all and the SARS scare that kept so many people indoors…  

Did you know that Bird Flu has killed less than 250 people in the last five years? And that SARS is responsible for less than 800 deaths? Malaria, on the other hand, is responsible for approximately 3 million deaths per year, as are diarrheal diseases.  The simple truth is that you are more at risk of a getting hit by a car or being struck by lightening than you are of contracting either one of these diseases.

I’m not saying we shouldn’t worry about bad things happening. Worry keeps us in check; it helps improve our judgment in the face of danger.  But raw panic without reason makes every situation worse. 

Since the media is always looking for the next best scare, I would like to announce:  The Food Storage Panic of 2008

The background story

Australia, one of the largest worldwide distributors of wheat and rice, has been suffering through a seemingly never-ending drought.  Where rice and wheat fields once flourished, only dry dirt remains. Over the past few years, this has caused a decrease in 98% of Australia’s rice and wheat.

As exports have lessened, demand has significantly increased.  Coupled with rising oil and commodity prices, the amount of available grains has caused quite a stir in several countries.

Fortunately for the U.S., wheat, rice, and other staples are thriving.  Our market has had no problem keeping up with demand—until the mass hysteria started.

The problem

When the media equated Australia’s problems with a worldwide epidemic, we all started rushing to the grocery store to fill our shelves with the things the media told us we need most. Distributors, not planning on such a high demand, have become backed up on outstanding orders. In the spirit of keeping a loyal customer base, retailers have begun to place purchase limits on certain grains, not because of a food shortage, but because of a distribution deficiency and an inability to predict the sudden increase in demand. 

Luckily, our outlook is bright. Grain manufacturers are working double-time and limits on food are certain to be short lived.

Let’s take this a step further

Even though we are not actually in a state where food is scarce, what would happen to you if the situation we have been recently scared into believing was true? What if there was a worldwide drought and wheat, rice, oats, and other staples were unavailable to the masses?

Would you be prepared?  Would your cupboards be full, or would you find yourself looking into the eyes your hungry children trying to explain how the last bag of rice was clawed out of your hands at the empty grocery store?

Like I mentioned earlier, worrying can be good, but having knowledge and information is better.  Are you prepared for hard times?  Are you aware of your preparation options?  Panic is never the right answer, so take a deep breath and create a good plan. 

Lately it seems like the more money our family makes the less we have at the end of the month.  I know this defies logic, but I’m pretty sure I’m not alone in this boat. I remember the good old days when we were poor and yet able to save a lot of money. Most unfortunately, our savings trend has decreased as our income has increased.

In my current state of acknowledging the need to save more and spend less—much less—I have decided to utilize a few highly recommended money-saving resources.

Luckily, it seems there are many others out there just like me. We all want to save money, but we need an injection of know-how. Even luckier, there are a few treasured people out there who are willing to share their money saving tips for free!

To date, the most comprehensive money saving resource I’ve found is Pinching Your Pennies. At www.pinchingyourpennies.com you can find a myriad of money saving tools like coupon lists, grocery deals, and online discount codes.

The thing I love most about this site is that much of it functions in a member-helping-member way. There are countless postings from members that advertise the best deals around town.  Everyone on this site is happy to share their best coupon and money saving advice, which is nice for those of us who are just beginning to venture into the world of coupon clipping and bargain shopping.

If you are anything like me, saving more equals a happier household. As I turn toward the world of penny pinching, I urge anyone else in need of a spending overhaul to do the same. I would also like to thank the gold-hearted members of Pinching Your Pennies for sharing their saving advice so liberally.

Take a minute and ask yourself whether or not you feel completely comfortable dropping your child off at school…or a friend’s house….or the mall….

Although my child is only three and not yet running around town on his own, I feel a tinge of unrest every time I drop him off at school. I fear that something might happen while we are apart and he may not know what’s going on or how to deal with his surrounding circumstances.  This line of thought often leads me into somewhat of a “fear tailspin” in which I start to consider never letting my child leave my sight—ever.

I would love to stand over my child’s shoulder forever and protect him.  Realizing this is quite impossible and somewhat creepy, I have decided to equip him with the knowledge and resources he may need in an emergency. You may be thinking “Your kid is only three…what good can this possibly do now?”  To which I would answer, “A day seldom goes by when I am not amazed by the vast amount of knowledge young children soak up. They are pretty sponge-like in that way. Also, if I start teaching my baby about emergency preparedness while he is young, he has a much better chance of surviving a severe disaster.”

Children spend approximately 25% of their time away from home. As they grow older and become more interested in their friends—and less interested in you—this percentage grows. So what would your child do if he/she went to the store with his/her friends and an earthquake erupted? Would your child know what was going on or where to go for safety?

Starting an emergency plan is important for all families and age groups. The younger a child is when he/she is taught about emergency planning, the better things will go in the event of a disaster.  Please keep in mind that emergency planning is not exclusive to giant attacking monsters or the earth freezing over. Make sure you include minor calamities in your emergency plan such as cuts, power outages, bug bites, CPR, etc…

 I realize emergency planning is an extremely broad topic and that starting an emergency plan can be very stressful. My best advice is to start small; cover the basics and work up to more critical subjects.

Read the list below for ideas on what to include in your child’s emergency plan. In the event of an emergency, make sure he/she isn’t left stranded.

 ·Make sure your child knows to dial 911 in an emergency

·If an emergency occurs, where will you meet if separated?  Who will you trust? 

·Cover topics like stranger danger, bug bites, and cuts

·Discuss what to do in major disasters  like earthquakes or floods

· Provide your child with a 72-hour kit, change, and a phone card

·Make sure your child knows your contact information and consider providing him/her with an emergency cell phone with alternative contact numbers

·Pre-arrange to have an alternate care-taker who is willing to care for your child if you are not available

·Have your child keep a small emergency supply kit at school. This kit should include a flashlight, a radio, bottled water, and a poncho or mylar blanket. 

Knowing your child is safe and cared for will allow you to keep a clear head so you can make responsible, intelligent decisions in a time of crisis.  Prepare your child to understand what to do if you are not around. Teaching your child a broad range of emergency preparedness techniques will prepare him/her for greatest emergency of all—the one he/she is forced to face alone. 

 Did you know the average American adult spends over 30% of his or her time at work?  My first thought was, “I wish I could only work 6 hours a day!” But seriously, whether you are a full-time hero or a part-time student, emergencies have a good chance of striking while you are away from your primary emergency supply — assuming you have a primary emergency supply.

An emergency kit is not just about giant monsters wreaking havoc through the city or floods reaching your 4^th story window, they are about everyday incidents ranging from minor scrapes and bruises to a lightning storm that knocks out the power for 45 minutes.  Make sure you don’t end up being the only one without a poncho in that torrential downpour or finding your way through the pitch dark halls of your building without a flashlight by taking the following steps toward emergency preparedness:

Store emergency contact information in your workspace.  If something happens to you at work, your co-workers will need to know who to call. Make sure your emergency contact information is clearly written and easy to find. Keep this list in your phone as well. Many companies have an ICE (in case of emergency) section built into their phones. If your phone doesn’t have this function, create your own ICE contact.

Keep a duffel bag or backpack full of emergency supplies in your office.  Don’t get caught off guard in a less-than-stellar situation. Make sure your backpack or duffel bag has plenty of water, a flashlight with extra batteries, a pocket knife, a first aid kit, and a radio. These items will keep you safer and provide you with a sense of security. 

Keep an auto emergency kit.  This will not only ensure your safety on the road, it will also provide a backup to your home or office emergency supplies.

Get acquainted with your company’s first aid kit and emergency supply area. Every company should have a first aid kit and a fire extinguisher.  Make sure you know where these items are located and how to use them. 

Research your company’s evacuation plan. Although most businesses do not hold emergency drills, every company should have an evacuation plan. Acquaint yourself with the details of this plan and discuss emergency preparedness with your supervisor and co-workers.