The cost of goods is continually rushing upward and onward in a dizzying blur, while the value of a dollar drops dramatically. Lacking a good system of balance to account for inflation, the purchasing power of the paper notes that we carry is constantly fluctuating, and not usually to our benefit. So, how are we expected to make ends meet when our dollars lose their elasticity?

For that matter, does putting money aside for a rainy day make sense anymore? Like many, I have had to rely on my savings from time to time, and it’s been a relief to have it to fall back on in those times of need. I do believe having some sort of savings is important for those emergency moments.

On the other hand, I’m not so sure putting money aside for retirement makes as much sense to me as it once did. I used to work in the banking industry and learned a lot about IRAs. As a banker, I believed having an IRA was extremely important for your future retirement. However, because a dollar spent today clearly doesn’t stretch as far as it did yesterday, we can follow the logic that a dollar saved today won’t get you as far when you retire and receive your IRA disbursements.

But you earn interest on those types of accounts and you can get a tax deduction with a traditional IRA, right? Doesn’t that count for something? Well, if you don’t pay taxes on your IRA contributions, you will on your disbursements. You will owe those taxes at some point, it’s just a matter of whether you choose to do it now (Roth IRA) or later (traditional IRA). And with the extremely low interest rates on savings and IRA accounts, you aren’t earning enough in interest to compensate for the loss of value on your hard-earned dollars. You could just as easily hide your money away under a loose floorboard and end up with nearly the same amount of money in the end, although valued at much less either way. Due to all of this, I’m beginning to second-guess the concept of having an IRA as my fallback for retirement.

Kind of depressing, isn’t it? If you’re anything like my husband and me, every dollar that we set aside for savings or retirement is a sacrifice we have to face in what we can afford today. Because of this, it’s painful to think that it won’t have as much purchasing power when we do begin relying on that money. How will we ever afford retirement if our money just keeps losing value?

So, what do we do instead? Fortunately for me, I had the honor of working with Martin Ramallo, author of Stacking Gold and Silver (you can also check out his website here). In his book, Martin talks about the lack of value that the dollar holds and shares his hard-earned knowledge of investing in actual gold and silver instead, which are considered real money. He breaks it down for people like me who are complete “newbs” to investing and terrified of making a bad investment or having poor timing. Unlike the paper dollar that is merely a representation of actual money, gold and silver are the basis of our monetary system and hold their value. Yes, their price per ounce (spot price) changes as the value of the dollar changes, but the value of the precious metals holds true. I highly recommend purchasing a copy of Martin’s book and learning about all of this for yourself!

The author/artist of “Keeping Up with the Joneses,” Pop, drew his inspiration for his comic strip from real life, but how did we get to this point where money equals happiness and debt is normal? Admittedly, it’s hard to avoid debt when inflation is out of our control, but we can try our best to live within our means and focus on the things that money can’t buy, like quality time with loved ones. Of course, it’s fun to go on elaborate vacations, eat at expensive restaurants, and buy whatever the latest gadget is, and giving in from time to time is perfectly okay! In fact, I encourage you to treat yourself on occasion.

But we’ve got to also be sure to balance it out and be aware of what we’re earning versus what we’re spending. Never underestimate the value of inexpensive/free activities and quality time. Pack a picnic and go to the park. Sit on the beach and read a good book (or write one!). Create a scavenger hunt and hike in the redwoods. Curl up at home with some homemade popcorn (simple recipe below!) and a movie. Dust off that board game or deck of cards. The possibilities are endless and only limited by your imagination.

I may not know the meaning of life, but I firmly believe the purpose lies in the pursuit of happiness. Rather than keeping up with the Joneses, you need to focus on keeping up with yourself (check out the movie The Joneses if you haven’t seen it yet). Whatever makes you happy, pursue it. Sometimes those hobbies cost money (horses aren’t cheap!), but strive to find a way to do it within your means even if it takes time to save up or requires sacrificing something else, like your satellite TV subscription or downgrading your phone service. You have to make a unique plan that fits your own lifestyle and budget, but with a little effort, you can find that balance.

And maybe most importantly, stop comparing yourself to the Joneses. Don’t rely on others to tell you what valuable. Appreciate what you already have and what you can afford to add to your collection. The bottom line is, don’t worry about what others are doing, have, or enjoy. Focus on yourself and what truly makes you happy. In the end, that’s what life is about: being happy. (If you need a lyrical reminder, click here.)