While only tangentially related to couples finance – as it affects our spending – I thought I’d get on my soapbox about the price increases in Kabul.

After six weeks out of the country, I’d have to say that it has gone a bit overboard. Prices in Kabul are outrageous.

Back in May, while I was in Vietnam, the price of bread rose 300% in two weeks. It got so bad that there was an attack in broad daylight of gunmen taking over a market to steal flour in Kandahar. Here is a posting on my personal website about the situation.

Well, that was only the beginning. The price of a round trip ticket to Kabul on the discount Afghan airline is now $750 – the UN flight is $1,000. This means that everything is hiked substantially.

Last night at a restaurant we were expecting the $8 well drink at happy hour – that is typical for Kabul. But with the $8 hummus, $10 garlic bread, $17 cheese board – just for the appetizer prices – we ended up skipping dinner altogether and came home hungry and sober after four hours at the bar (watching a documentary about Afghanistan as well).

Basically you can’t go out to dinner in Kabul – even without drinks – for under $20.

While I can feel the sticker shock in my own wallet, I’m even more concerned with local Afghanistan. From what I’ve heard from locals, a family of nine that was previously doing fine on $300-$400 a month in living expenses is now having a hard time keeping their budget to $800.

Now you can imagine that in a stable and orderly place like the states, there would be mad chaos with that kind of price hikes – I know it is feeling like things are headed in that direction – but here in Kabul I don’t know how much longer it will be before there is a backlash.

While there is discussion of increasing troop levels in Afghanistan there is the sinking feeling among Afghans – even those that once supported the US – that we’ve done enough damage already.

Curious where things will go from here. I’m not expecting any bargains around here though.

Best,

Miel

MANAGE YOUR MONEY TOGETHER

Here are some simple guidelines for DINKS to build wealth:

1) Collaborate: Meet regularly to talk about money, set goals together, track and monitor them.

2) Understand and respect your partner. Take time to understand your partners values about money.

3) Watch the numbers. Get a budget, monitor your spending and track your net worth.

4) Max your retirement. Maximize contributions to your tax deferred retirement accounts.

5) Invest in stock. Stocks perform better than bonds or cash.

6) Avoid high interest debt. Credit cards and title loans are financial cancer.

7) Diversify. Don't put all your eggs in one basket.

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