The Hidden Costs of Modern Living – A Look Beyond the Surface And How To Plan For Them
The Hidden Costs of Modern Living – A Look Beyond the Surface And How To Plan For Them
How much money does a person need to earn to live comfortably? Apparently, a lot more than the average wages from four years ago. As the cost of living seems to be out of control these days. Food and housing costs have gone up. In Australia, it is estimated that the monthly cost of a family of four is around $5,818, and that’s without rent. With the majority of people struggling to keep up with rising prices. A lot of individuals are now dipping into their savings or getting side gigs just to get by.
While making a couple of adjustments can certainly help to stay on top of basic expenses, there are a few unforeseen costs of modern living that you may not have included in your budget. Knowing what these expenses are can help you prepare for them, and it prevents you from making financial mistakes in the future. Here’s what you need to know about the hidden costs of modern living and how to plan for them. The hidden costs of modern living – a look beyond the surface and how to plan for them.
Illnesses and Health Expenses
More people are actively trying to get healthy by eating the right foods and getting some exercise into their day. However, life has a way of throwing a curveball, and anyone can get sick or injured when they least expect it. Illnesses or injuries can be costly, as not only do you have to pay for medical checkups, tests, hospitalisations, and therapy, but it also translates to missed days at work. Those who aren’t entitled to paid sick leaves may feel pressured to turn up at work even if they aren’t feeling their best, and this leads to consequences such as poor performance, reduced productivity, and anxiety in workers. It is estimated that one-third of Australians don’t have access to paid leaves, and while the system does need to change, there is one thing that you can do to protect your financial health while recovering.
Getting life insurance and living insurance is a great way to prepare for unexpected illnesses. There are different types of insurance that you can get, but if your company doesn’t offer paid sick leave, it may be a good idea to get Income Protection Illness cover. This can provide funds for common expenses such as your mortgage payments, rent, and even groceries so you can completely focus on your recovery. Meanwhile, Serious Illness Trauma cover can provide you with adequate funds to cover lost income if you experience a severe health condition, such as a stroke or a heart attack, or if you get diagnosed with a serious condition such as cancer.
Online Purchases
We live in a time where everything can be bought online, and by using a couple of apps, anyone can buy food, clothing, leisure items, and even experiences with just a few taps and swipes on a mobile phone. Being able to shop for things online has certainly made life more convenient, however, it comes with hidden fees that could derail your monthly budget. With sellers becoming more Internet-savvy, some have started using shady pricing methods to conceal the actual cost of items and get more profits from their products.
You’re most likely to experience this if you plan to buy an airline ticket to go on a holiday abroad. Ticket prices today aren’t fixed, and they can be worth different amounts to different people. What’s more, algorithms are now being used to determine ticket prices, so things like current fuel prices and demand have become major pricing factors. And let’s not even talk about food delivery fees– things have gotten to a point where in the delivery service charge often exceeds the price of the food.
It may be difficult to stop online shopping altogether, especially if you live in an area that’s a few hours from the nearest grocery store or shopping center. However, you can stay ahead of the game by finding out which platforms are transparent about their pricing, and knowing the best times to buy certain items. For example, you can avoid buying your plane tickets at the very last minute to get lower prices, and buy them 21 to 74 days before your flight to get the cheapest rates. Check your online shopping apps too to see if they come with discount or free delivery vouchers, and use them whenever you make a purchase.
Car Maintenance
Car ownership comes with various expenses that go beyond fuel costs and the price of buying new tires. If you’re unaware of your car’s maintenance schedule, you may find yourself dealing with costly repairs or a complete vehicle breakdown sometime in the future. Plan on setting aside funds for maintenance costs, and stick to the schedule as much as possible to keep your vehicle in good condition. For instance, you should do an oil and oil filter change every 5,000 to 10,000 miles, then rotate the tires every 8,000 miles. You should also replace your fuel filter and air filter after 30,000 miles, and replace your brake fluid every 45,000 miles. It may be a bit daunting to keep paying for maintenance, but it’s highly worth it since having to deal with extensive repairs or a car replacement is sure to be more expensive in the end.
The price of modern living comes with hidden fees, so be prepared to avoid being in debt. Factor in these hidden costs into your budget, and make good financial decisions so you can take care of your and your family’s needs.
Featured photo by Anastasiya Gepp from Pexels
