Our shopping carts could become a little less full when thinking about the future, and bank accounts a bit smaller in the next decade. Why? With increasing global inflation, even everyday essentials might start to feel like a splurge for most of us (even the average American). Rising costs will have us all re-thinking what we truly “need” versus what we merely want.
It’s about time we started considering inflation when planning our finances so that we don’t feel like we’re drowning in bills in years to come. Here are 20 things that will start to strain your budget in the next 10 years and make you rethink your lifestyle choices.
1. Medical care
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Healthcare is becoming inaccessible to many people (most in the US) because they can’t afford the high costs of insurance and/or treatments. Technological advancement in the medical field, expensive pharmaceuticals, and high administrative fees associated with healthcare insurance and healthcare delivery add up to the costs.
According to PwC, medical treatment costs are skyrocketing because of rising inflation. In 2024, medical costs are expected to increase by 7% each year, more than we saw in 2022 and 2023. What’s even worse? It does not look like this trend is going to reverse.
2. Homeownership
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As said in The American Economics Review, in the last 30 years, housing prices have been rising regularly. The average price for a used single-family house across the country increased by 3.5% compared to last year. Well, it’s bad news for buyers because wages might not increase enough to keep up with the rising cost of living, making it hard for people to afford a down payment or housing expenses in the next few years.
3. Transportation
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Traveling via car is already expensive, and it will become unaffordable in the coming years because of steady increases in fuel prices and high maintenance costs. Unfortunately, public transportation isn’t faring much better either. Frequent fare hikes will make the situation worse for the people who rely on public transport.
According to research, people worry because those with low incomes spend a disproportionately larger proportion of their total income on transportation.
4. Education
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Tuition fees are increasing at the fastest rate after medical care. Although financial aid often helps students pay less than the listed tuition price, the actual cost of attending public four-year colleges has more than doubled since the year 2000. Also, the basic expenses at American colleges are the highest among bigger developed countries.
This rise in tuition fees can make public and private education unaffordable for many families when they are already dealing with high living costs and stagnant salaries.
5. Exotic Travel
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With the increasing popularity of exotic destinations, there is an upsurge in demand for flights, accommodations, and tourist activities- driving up prices across the board. The dream of visiting far-off destinations may become more challenging to fulfill for a significant portion of the population.
6. Rare Wines and Spirits
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With economic changes and shifting consumer choices, rare wines and spirits are becoming even more exclusive, making it impossible to get for average people. Moreover, the rising demand for wine and spirits keeps prices high.
7. Designer Clothing
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As labor and marketing costs for designer clothes increase, these items’ price tags increase. Some people will still buy it after a decade to show off their wealth or because they think it makes them look more fashionable. But for many people, the high prices will be just too much to pay.
8. Life-saving Medications
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In the post-pandemic world, where every day we find a new COVID variant, as the healthcare industry is focusing more on developing treatments to deal with chronic diseases, the costs of research and development are expected to rise significantly.
Unfortunately, these increased expenses are often passed down to consumers, making life-saving drugs more pricey. As a result, many individuals may struggle to afford these essential drugs in the next 10 years. According to research, the rising cost of medicine has been a huge public health problem for nearly thirty years. Sadly, many people withhold their treatments because they can’t afford the medications.
9. Cars
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Owning a car means freedom and comfort, but it’s no secret that maintaining a vehicle can be expensive. In the next 10 years, most people might find it hard to afford cars because of government policies, everyday fuel price hikes, and advanced features. For reference, a recent report reveals that the price of new vehicles in January 2024 is 19.6% higher than in January 2021.
10. Home Air Quality Services
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Not every house has home air quality services installed yet because they are already expensive. But, with the harsh changes in climate and increasing pollution levels, the need for indoor air quality services has significantly increased. As the demand rises, soon these services will become out of reach for most households.
11. Gasoline
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Gasoline is necessary for many of us to get around, but that may no longer be the case. With the push towards electric and alternative fuel vehicles, gasoline prices are expected to rise significantly, making it impossible for most people to pay for gas and fill up their tanks.
12. Digital Privacy Services
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Digital privacy services like VPNs are in high demand. Unfortunately, the increased use of technology comes with extended cyber threats, indirectly increasing digital privacy services’ prices. According to research, the VPN industry is predicted to be very high in the coming years and almost unaffordable for the average income holder in the coming years.
13. Quality Mattress and Bedding
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Within the next 10 years, not everyone will be able to afford a good night’s sleep because the prices of a decent mattress might go up significantly. As demand for eco-friendly materials increases, so will their prices, making a peaceful sleep a far-fetched dream.
14. Electric Vehicles
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These cars run on electricity instead of gas, and while they’re good for the environment, they will be expensive to buy. Even though they will conserve money on fuel in the long run, the upfront cost of an electric car (EV) will be too high for many. A forecast states that it is expected that the market of EVs will demonstrate a steady annual growth rate of 9.82% in 2024-2028.
15. Childcare
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Childcare, such as daycare or babysitting, helps parents care for their children while they work or attend school. Some families might find it hard to pay for childcare, especially if they have low incomes or multiple children to take care of. Unfortunately, childcare is unaffordable almost everywhere across the country, and parents below the poverty line are mostly impacted.
The unaffordability will become intense. According to a report, childcare costs are increasing significantly because of global inflation. In 2023, average daycare fees increased by 9% in the US.
16. Food and Groceries
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The cost of food has always been a concern for many households, but in the next 10 years, it is expected to become even more expensive. According to CNN, food will become scarcer, grocery prices will spike, and crops will lose their nutritional value due to the climate crisis, natural disasters, and economic factors. Ouch.
17. Retirement Funds
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Retirement savings are a crucial part of financial planning, but with increasing life expectancy and the rising cost of living, the amount needed for retirement constantly increases. In 10 years, many people won’t be able to afford to retire at all.
18. Bottled Water
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The world’s water resources are becoming scarce each day, and bottled water will likely become a splurge in the next few years in some parts of the world. The cost of producing and transporting bottled water will rise, making it less affordable for the people.
19. Electricity
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With a shift towards renewable energy sources, the cost of power bills is expected to rise significantly. This will make it incredibly difficult for the average household to afford its energy needs.
20. Artisanal Goods
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Unique, high-quality items that are locally sourced, handmade, or produced in small batches are in trend now, pushing up the prices of craft and artisanal goods. These products, from delicious foods to clothing and cozy home decor, often involve extra time, effort, and skill, moving them beyond the reach of average consumers.
