I've received a constant stream of emails advising of price increases this year. My bank, multiple insurers, electricity, gas and water, my drivers and firearms license, vehicle registrations, prescriptions, doctors fees, my professional licensing, PayTV, Spotify, Netflix, home internet, and Amazon Prime have all increased in cost. The latest is my monthly mobile phone plan as below. It's a small increase, $4 taking it to $72 per month, but that's $864 a year just for my mobile phone plan. It's a lot.
Is there an end in sight? No I don't think so. Market forces cause increase costs so businesses and companies have little choice but to react. Sure, they can accept lower profits but many have shareholders to report to and with non-listed businesses...would you accept lower profits if it was your business? No is the answer, and if the answer was yes, you'd not be in business for long when costs around it rise and you don't adjust accordingly.
I live comfortably, my partner and I work very hard to make it so and we're sensible with expenditure.
We don't live extravagantly but have a few things that help make our lives more comfortable or enjoyable. We travel abroad and domestically, go out from time to time and don't really go without the things we need, just a few we want. We're far from wealthy, but strive to be comfortable.
We are fairly careful with money, think before we spend, take care of what we have so it lasts longer and buy on a need over want basis. We are not impulse buyers which helps and are pretty simple folk, we don't need to furnish our lives with loads of things all the time, it's the experiences we seek...but costs are still climbing and there seems no let up.
I don't want to go into my personal costs or income but my cost of living now, when compared against this time last year, means I have t find over $500AUD more per month, that's $6,0000 annually, and it's still climbing. That's a significant rise and has implications on life in general.
Everything is up. I'm talking about groceries, toiletries and cleaning products, fuel and vehicle costs, insurances, services and utilities, recreation costs and everything else besides which leaves me wondering how people manage with lesser incomes than I have; it's beginning to exert some pressure. Are there areas in which I could cut back? Yeah of course...I don't need Spotify, Netflix, PayTV, Amazon Prime and a few other things but haven't I worked hard all my life, from the age of thirteen, to have a better life and a few things that make my life more enjoyable? Fuck yeah I have! I fucken deserve it y'all. We all do...but financial pressure builds month by month.
The duress caused by the rising cost of living, and that it is going to climb higher and higher, will break people, financially and emotionally. It'll cause suicides, immense stress and suffering and cause people to cut corners to their detriment; it'll also see an increase in the rise of crime be it jumping fences and into windows to steal things to sell or use themselves or cyber crimes - My partners credit card was attacked only a few weeks ago. It's not heading to a happy ending for many...although there'll be many who get rich too: millionaires will become billionaires and so on.
Have you seen increases across the goods and services you purchase and use? Have you stopped buying or using something because it is too costly or adjusted your way of life to account for rising costs? Do you run a business and have had to adjust for the costs that increase around it? How about service, do you feel it's declined as the costs rise? Where do you feel it will all go from here, what does life look like in say, two years?
Feel free to comment below if you have any thoughts on the topic or examples of rising costs in your area. Maybe you have some cost-saving tips to share? Please comment on this topic if you're inclined, it effects us all.
Design and create your ideal life, don't live it by default; tomorrow isn't promised so be humble and kind - galenkp
[All original and proudly AI free.]
Any images in this post are my own.
I see everything going up. I truly can't believe the cost of food right now. I don't know how people on lesser incomes that have children manage to feed them and pay all the higher costs of everything else too.
I am in a financial moment in life where I am bringing in enough that it is not causing an issue for me. I am debt free and I make more that what is required for my necessities. I have also just begun to draw my social security in addition to my work income as well. I say a "financial moment" because I haven't lost sight of the fact that in the blink of an eye everything could change. You truly just never know.
I watch "antenna" TV, which is annoying sometimes with all the awful commercials I admit and I have a firestick with Amazon which was a one time payment purchase that lets me choose movies or other programs with no additional costs. I have a cable bill of course for the internet, but it also allows me to work at home, so it has a dual function now. My phone is with an economy phone company called Cricket and the plan I have is priced at $40 (USD of course) a month, but because I let them automatically take my payment monthly from my bank (something I don't normally do), they deduct $5 off that plan, so $35. I don't like to give any company access to deduct their own payment, but if they discounted my bill to this percentage, I'd reconsider. About the only other extra I have is that I also pay for Amazon Prime. I hesitated this year on it, but decided to let it fly at least one more year. I don't normally need the things I order that fast and shipping is free as long as you spend a certain amount, which isn't too high. The Prime does give my firestick additional offerings, but that is not why I have it and I also pay for Amazon unlimited music which I stream through my Alexa products. I do enjoy access to the music a lot. I will decide at the end of the year whether I will continue with prime or not, but I don't have to have it for the firestick or the music. We'll see if it makes the cut in January.
I don't see it getting better. I have hoped it would start leveling out at least. In my lifetime, for whatever reasons pricing on anything has had to go up, I have never seen them come back down once the issue was over, so I don't have much hope on it getting a lot better. I also wonder frequently how many companies are gouging the people and taking advantage of the situation. I believe some are going up much more than they have too, to keep their same profits.
I've always found it almost laughable, but a bit offensive too for companies to say they are "only going up this little bit" as if that won't hurt you, when they know everything else you touch or need is going up too, so it DOES make a difference, especially for those that are having to stretch every penny just to get by.
Working to get yourself into the position you are in is good, admirable, however as you suggest, it can change quickly. Be vigilant.
You have a good approach and are sensible I think, having some things you would like, but not too many, and I agree that things won't come back down, not as much as they went up anyway, it at all.
Price gouging is a reality and a lot are doing it, also price fixing, the big corporations forcing suppliers into lower prices so the corporation's make billions...it'll force places to close though, and that affects everything through unemployment and lack of competition...it'll change the face of business and that changes things for everyone.
I think a person needs to apply some sense to their situation, and whilst saying things like, I'm not affected much, might seem cool, that sort of bravado will crash down upon many people's heads if they don't make changes.
Yes, making changes while it's voluntary helps keep a better mindset about doing with less than waiting till you are forced too. It is always helpful to take care of yourself that way. Saving most of the extra too "just in case" is a good thing too. I have two bigger ticket items that really need to be replaced and one that I "think" I need. After those are updated, All of the second income will be put away for the day when that may be the only income.
A little preparation is easily done and can make a big difference down the track. You're on the right path I think, I like to think I am too.
Yes, we are seeing it here as well. While I certainly don't have any issue with some of the small businesses who were truly impacted raise a bit to help their recovery, I do take issue with the local governments wanting to raise their taxes and costs to "recover from covid". The whole "recover from covid" debacle is their fault for making the poor decisions to shut down the small businesses, to use government funds for fake vaccine scams, etc. etc. I take great issue with those increases. And then there of course are the bogus businesses that conducted their price gouging during the shortages, and now the ones charging extra just because they can join the bandwagon, even though their costs may have actually gone down do to remote working, site closure, layoffs, etc. Feels a little better to complain, but doubt we'll see much change. I encourage folks to pay attention and spend your money elsewhere than the scammers, and perhaps some healthy competition will brings things back down. Or on second thought slow the increases, I doubt we'll see much lowering again from here in our lifetimes.. Where the Star Trek replicators so everything is just free? lol
It all sounds very familiar Kris, it's the same here, exactly. So much nutbaggery.
The pandemic is used as an excuse for many things and prices go up, with service standards on the decline...it's fast becoming a very unpleasant environment. No one cares about anything at all except themselves and customer service is almost a thing of the past, quality declines also. It's all out if control and people don't seem worried. (Generally)
I agree, prices will go up, wages/salaries will not keep up and all that's left to do is reduce ones standard of living. It's not affecting me just yet, but with more increases adjustments will become more prevalent. It's a little disconcerting to think I worked so hard to get into a good position only to se it whittled away in this manner.
And interest rates will continue soaring for a while, then only come down slightly. The way of the world I suppose. Luckily, we got locked in at an incredibly low fixed rate on our house when we moved 2 years ago near the prime drop.. Now we having to take an equity Heloc LOC to pay down some of the cards we had to put house improvements and such on to avoid the climbing interest.. I hate paying interest, lol, but it was a decision on timing to get the things we "needed" to make the house comfortable, garage, mower, etc... Anyway, we'll get that high interest Ccard debt into a more reasonable consolidated interest loan where we can knock it down without paying 23%.. That's another rant... in my eyes, anything over 15-20% should be considered usury and illegal for "legit" companies.. Just got done paying on the buggers, so in a bit of mood about it.. lol Have a great weekend.
Credit is a slippery slope and getting rid of it as quickly as possible is the smart way to go, as is your method. I'm fortunate to have worked on any credit I had, which was very small anyway, and now feel a little more secure through not having any. Credit has its place, but unfortunately it's give to people who cannot repay it, or treat it responsibly and therein lies the issue.
Here! Here!
The situation is really complicated, things have been going up for a long time, food, goods, services and so on.
Of course I am still in better conditions than in Argentina, there they are seriously complicated, the situation is intolerable. Latin American countries are suffering terrible inflation.
To give you a fact and equating the dollar to the euro (it is an assumption) when I arrived in Spain 1 euro was equivalent to 40 Argentinean pesos, today after almost 5 years, 1 euro is equivalent to 460 Argentinean pesos.
Being here, an example is the electricity, it was going up a lot... what did I do? change company, one that offers me a fixed rate.
As for food, I look at prices in various supermarkets.
Internet and telephone, I chose a local company which is cheaper and works very well. That allows me to more or less continue with the same lifestyle.
I'm not afraid of the crisis, I was born in it and lived 40 years like this, but as you say ... it's not fair for anyone.
How do I see this in 2 years? A difficult situation, whoever makes investments will probably make a profit.
I study a lot the economic and political background.... poor people are wanted for many reasons... maybe control. It will depend on all of us. It is a subject to talk about for a long time and for a long time.
I agree with everything you say, there are not exactly good times ahead.
Thank you Galenkp!
It's a race to the bottom though right?
Prices are up so people make adjustments, cheaper internet, cheaper/inferior products, less spent on personal health care, people drop insurances...but there's only so much of that people can do. When that bottoms out, but prices and costs still rise? Where does a person go to then, what do they do? You know what I mean?
There will be shortages, food, water and so on. Businesses will fail, corporations and governments and then...Anarchy. I know this sounds depressing but I just can't see that enough will change to prevent it. I live in a first world country that is slowly failing...yes, far better than some I could mention, the third world countries, but it's on a steady decline, those who say otherwise are delusional.
Bad times ahead.
That's right, although many don't want to believe it, the decline is coming... if this continues, anarchy and conflict will follow.
Everyone is making adjustments, some more, some less, but that is the reality.
We will see what happens... the future looks dark. As positive as I am, I cannot deny the undeniable.
It has been 2 days since this publication and I come to give my opinion.
Sometimes I think if that is for countries like Australia what will be left for Venezuela?
Some time ago you advertised the high cost of living, which was starting with the transportation problems, this was going to affect the cost of goods and food. It seemed incredible to me that other countries were also facing this type of situation.
Sorry, I missed this comment earlier. No excuses.
I know what you mean. Most here have no clue how bad things are in V and, in fact, no clue how bad things are here (or will get) either.
Almost everything is more costly now than it was a year ago and it's accelerating. The cost of transport is one element (I'll give you points for remembering that post I did) and that will exert pressure on everything else; ultimately, the consumer pays. The government gives handouts as if its made of money and less people want to work because of it.
Just for perspective, an unemployed (single person) gets $670AUD every fortnight (two weeks) from the government for doing nothing. Why would a person work? Of course, the average annual salary in Australia is $90,800 AUD (USD $60,355) so those on unemployment earn far less and live a lot differently, but when compared to what some in Venezuela live on it's a lot.
It's all relative I guess, but either way we look at it, costs are going up and incomes are not keeping up with inflation. I think things will get very bad before (and if) they get any better.
Yes, there has been a significan increase in the cost of goods and services on our side of the world. We have stopped buying and using a few different things because of this increase in costs. Some of this probably good for us, like cutting different foods from our diet.
Luckily I do not run a business, but have discussed it with some small business owners in the area on occasion in passing. This increase in goods and services is killing them, and not slowly either. Many have had to raise their prices to compensate, and it has priced them out of being able to compete with bigger companies who can do it cheaper because they can get goods and services cheaper in bulk than smaller business.
Service has been getting worse for the last few years. I think it follows the fall of our societies ability to be polite and respectful.
I think the costs of goods and services maybe drop some in a couple years, but service itself just gets worse.
I think cutting down or out when it comes to food and beverages is one of the easiest ways to save some money, especially if those things are not all that good for the health. Of course, this is subjective.
Your point about smaller businesses not being able to compete wit the nationals and multi-nationals is the same here, they just don't have the buying power of those bigger groups...and so the smaller businesses go under and consumers loose as there's a lack of valid competition to keep pricing down. And you also mention service...it's declining rapidly here, so much so that we'd often prefer not to go out to eat...but it's not just with restaurants...it's everywhere.
I'd like to think so too, but I think there's a lot of pain coming before then and hoping it will change could very well be false hope. And yep, service will continue to get worse...but then, with all the automated shops now...no one will be in them...or have jobs...a whole other issue.
Yep, I am afraid you are right about the pain coming, but like to be the optimist as much as possible in this fucked up world.
That's fair enough, I guess I'm more pragmatic about what's happening around me and work to mitigate its effect on me, having a little pessimism is good for that I think as it forces action.
Yeah I have enough pessimism to ensure survival for when shit hits the fan😀
Yep, that's what I was getting at. I figured you would. There's nothing wrong with optimism though, like hope, it's needed.
That was awful! Increasing the payment for the same mobile plan without any improvement. Bet they do it not because they are on a profit loss but because they can and want to further extract from people.
At the very least, capitalism is still working in my country so there were still competition between companies between services and regulates their price to some extent buy inflation goes really hard on food specially when we lack supply like chilly pepper that got more than 600% increase due to lack of supply so what we did was to convert some part of our garden and plat chilly pepper then we recently added garlic and onions so it will take some time for them to bear fruit.
They have shareholders to keep happy I guess, infrastructure to build, and they like to make massive profits too, which they do. It's the way if the world. What more do I get for the additional cost? Nothing. Doesn't seem very balanced right?
Inflation is going to increase sharply I think, probably in every country, and people will have to learn to get by with less, I think that's pretty clear. I hope it's not too terrible a time, but I suspect it will be for many people.
Yeah shareholders too and I don't even know how much this corporations lobby so that they can keep doing this while and the government doesn't do anything to stop them.
It's all a shambles and getting worse.
Over here everything has jumped up double in price, when I say everything I mean EVERYTHING. Sadly, non of our incomes or wages have gone up in doubles.
By now me and my family have adapted to all these hikes though. The recent hit during Covid, those 2 to 3 years we lost quite a bit of money in investments, and nor was our business generating money. So, that led us towards a big revamp, to adapt and survive.
Now that Covid is gone, we can now feel the recoil, the aftereffect; which is the worldwide crisis in the economy.
At present as things are slowly "getting better", as we are starting to generate a stable income from our business again, now the price tags have all doubled. From food to transportation, everything that falls under the " necessary" category, even these are now out of reach for the common man and family.
Funny thing, they say Bangladesh is a poor country, and I guess it is, but the prices of goods and cost of living is one of the highest in the South East Asia region.
A familiar story and one that is replicated here and in other countries. There are very tough times ahead for millions and millions of people and it'll destroy some of them, and not just in the poorer countries...it'll happen in the US, UK, EU and NZ, Canada and Australia also and it may be that those places (the people there) feel it the worst as we are used to such affluence and prosperity.
I wish this wasn't the case, that I saw a way for it to turn around, but I think we're on the brink of a situation far worse than the GFC in 2009/10.
I've been thinking about the same matter for quite a few months now. If something does happen, a similar situation like 2008, then this time it'll be double the damage. And it'll go on for 5 years at least, for things to calm down.
2008 was different though, I was in my early teens, too young to understand what was going on. But now I see it, and I feel it creeping on me and my family already.
Well, let's buckle up for now and hope for the best, hope for a "soft landing" maybe...
Soft landings are good, I think a lot of people won't have such a landing though.
Expecting a soft landing right now is me being a bit too optimistic, but you never know.
End of the day, big crisis or no crisis, people are already suffering, so if it does get worse than what it currently is, then I don't really know what to expect. There's just going to be a lot of pain, max pain.
It's all a little shrouded in mystery at the moment, I mean what exactly will come and how it will look, but that it's coming is in no doubt.
I think so, for now I'm trying to figure out when, it will hit...
I feel that price hikes are kinda expected these days - with the news of inflation going round for a year or so? For me, I think if it something is necessary, then I will just accept the price increase. Haven't really had to cut back on stuff since my expenses are mostly "needs" and not "wants".
Yeah, there's some who may not be affected, but more will be than are not. The pain will come, and it'll destroy many.
I am definitely feeling the pinch. I have also changed my spending habits, buying bigger-ticket items I have had my eye on before the price hikes can hit them. To anyone reading this comment thread, I would strongly suggest diversifying your financial planning out of government fiat. Stock markets and commodities are likely to be volatile, but good investment will likely protect and grow real value even if some markets flop and businesses fail. Of course, I'm also bullish on crypto in the long term regardless of current prices.
As for day-to-day, I have seen food, gasoline, and other essentials spiking. Lots of influences are in play, but the COVID money pump is still causing a lot of big ripple effects.
This began to happen four years ago for me and I've said a little about it in that time, although talking much about my true financial position here isn't something I'll get into.
There's so many moving parts to this situation and I don't think anyone could say they're across them all however looking at one's own situation, finances and costs, is a good starting point. Many don't do that though, I guess the head in the sand and hope strategy will still bring a result, just not one most would like.
That was meant as a more general "you" as opposed to giving my sage advice to a novice, LOL! And no, don't divulge that stuff here. As Gandalf warned Frodo, "Keep it secret. Keep it safe."
Ah ok, sorry, my bad.
You, (and I mean you) are one hundred percent correct though...the sad truth is so many just don't think about it. I get it, it's negative, sorrowful, frightening and all...but not planning ahead won't make those things go away. I suppose that's human nature though...I know people who do the same with their health.\
Gandalf always has such good advice.
'I wish it need not have happened in my time,' said Frodo.
'So do I,' said Gandalf, 'and so do all who live to see such times. But that is not for them to decide. All we have to decide is what to do with the time that is given us.'
'Many that live deserve death. And some that die deserve life. Can you give it to them? Then do not be too eager to deal out death in judgement. For even the very wise cannot see all ends.'
‘But in the meantime what course am I to take?’
‘Towards danger; but not too rashly, nor too straight,’ answered the wizard.
Almost all of the prices are increasing. You mentioned a lot and yes we do experienced it here too.
The minimum charge for water consumption is about to increased too, electricity already increased and even to the food we eat and services we need also increase.
Even the load I sell increase and I planned to increase my charge too.
It's out of control and with no end in sight I think many many people will suffer. I mange well enough, others I know also, but as things increase those who struggle to make ends meet will increase.
Sad but true.
Yes we can't see it's end, I remember our economics subject back then it said that the price will be going high and high.
Mostly I jokingly said that only my height didn't increase, lol.
Yes, my height doesn't either, or my IQ. Lol
Hahaha high five for that.
I recently wondered the same thing, since I live in the #Philippines and there are people who have to live on much less than me.
Part of that encourages me to build more, and serve more, since there is untapped potential in the promising youth of Davao City, Philippines.
Yeah, there's plenty of people who have less than others for many reasons.
Yes, and although lack of money is not necessarily a negative thing, all of our experiences are the result of the decisions we individually made.
And I consider the 2nd statement to be one of the most empowering ideas there is.. especially when it’s applied inward.
Posted via D.Buzz
working harder doesn't mean that we can achieve all what we want. We just have to pray for God intervention in our life
I don't believe in praying for things to happen, I go out and make them happen personally.
Lol... Working without pray is in vain
Do you think the cost of living that has increased generally is due to the inflation rise?
Yes, of course, the better question is why is inflation out of control?
The government really need to answer that
Spending $864 on your mobile phone each year is quite expensive
I don't spend more than a $100 here...
There's a big difference between your country and mine, your income and mine it's all subjective.
Congratulations @galenkp! You have completed the following achievement on the Hive blockchain And have been rewarded with New badge(s)
You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOPCheck out our last posts: