Unexpected places inflation rears its ugly head
No doubt we’ve all felt the effects of inflation on our everyday spending. We are all feeling it at the grocery store, restaurants, retail stores and more.
In my case, I used to buy a 12 pack of sparkling water for $2.99 every week. During my most recent visit to the store, I noticed the price increased to $4.39. That is a 47% increase. For me, that price change isn’t worth it, so I had to change my behavior and I no longer buy that item.
All of us are having to make choices like that during our weekly grocery store visits. The example above is a glaringly obvious effect of inflation. The trip to the grocery store is full of examples like mine, such as eggs and other items that we are paying way more for now than we used to. It is in plain sight for all to see.
Look Out for the Unexpected
What I’ve learned very recently is that there are some unexpected places where inflation has reared its ugly head. For example, my homeowner’s insurance company recently reached out to me to let me know that due to inflationary pressure on construction costs and materials, the reconstruction cost of my house has increased dramatically by 34%! So, when my insurance renews, my cost will also increase dramatically.
As the cost of everything continues to rise, more examples like this will rear their ugly head. Here are some other areas hardest hit by inflation that you may see less frequently than on your grocery store bill.
Auto & Home Insurance
If you have a mortgage, you will most likely receive an escrow statement soon. In that escrow statement, you will likely notice such an increase. Prepare now by adjusting your budget. Auto insurance isn’t immune from this same type of increase either, especially since auto repair costs have surged.
Make sure that when the time comes to renew your insurance, you are shopping for a lower rate. You can receive a quick quote online by clicking here.
Airfare has seen a dramatic rise. Not something most of us consider until we try to book that spring break or summer vacation. Using tools like Google Flights or Skyscanner can help you find the cheapest flights available (Note: Many of these free resources don’t include Southwest, so be sure to check their website as well).
Utilities have been rising, which you may not pay attention to if you are in a fixed rate contract. You certainly will when it comes time to renew your contract. If you have a variable rate plan, you’ve most likely already felt the increase.
For energy costs, you can search powertochoose.org for the best rates in your area. If you would rather someone else do the work for you, you can use programs such as Energy Ogre, who find the best plan for you and handle all the switching (there is a monthly fee associated).
Again, this is an item that we tend to renew yearly, so if your renewal date is coming soon, you may notice an increase.
In addition, if you have an HSA or FSA plan, make sure you are using it to it’s full potential. The money put into these accounts have several tax advantages which save you money, and can be used towards commonly purchased items. View eligible items here.
These are just a few examples. There are likely many more that all of us will discover at some point in the coming year. This year will be an important one to shop all of your yearly renewed services, such as homeowner’s and auto insurance, utilities, and travel plans.
Post author: Jamieson Mackay, CCUFC