Why Are Things So Expensive Nowadays?
100,000 dollars is the new 85,000 dollars.
Before, if you were making 100,000 dollars a year, you were set.
Nowadays, that’s not that much.
The money is still high, but the surroundings have caught up.
I recall a McDouble used to be a $1.07.
Nowadays, it’s more than 2 dollars.
The value menu is no more.
Why are things getting so freaking expensive?
We often talk about inflation.
Aka: things that have had a hard price increase.
Hard price increases are increases that we can perceive with our eyes.
But what people don’t talk about enough are the soft price increases…
I’m going to talk about hard & soft in this article.
The Reason for Hard Price Increases
An example of a hard price increase is the McDouble going from $1.07 to 2+ dollars.
I can see the change with my senses.
Companies can do a hard price increase out of greed or because they have to to make a profit and continue with their business.
I take pride in charging an affordable price for the ArmaniTalks books.
I want to make sure everyone can afford them.
Well, one day, I got a message from Amazon saying that the paper to print the books has gotten more expensive.
If I want to make a profit, then I need to increase the price of my paperback books by a little.
In this scenario, I was FORCED to increase the paperback prices because the price of paper increased.
We may be tempted to say people and companies are greedy when they increase their prices, but it’s not always like that.
Companies often want to charge what they were charging before, but unfortunately, they can’t.
They are the victims of expensive supplies, just like you.
The Rise of Soft Costs
Soft costs are the costs that are difficult to track.
However, it is still putting a hole in your wallet.
There are 3 types of soft costs people overlook:
- The mainstream-i-fication of the tip button.
- Contractors up charging.
- Aggressive homeless people.
1. The mainstream-i-fication of the tip button
The tip button used to be a niche concept.
You only had to pay tips in places like barbershops, valets, and fancy restaurants.
However, information technology made it easy to install a tip menu at the end of the checkout process.
Small businesses began installing this menu.
Once they installed a tip menu, they created a new income stream.
Imagine if you have a Sunday where you go to a coffee shop, get a haircut, & purchase a meal.
These are 3 spots where you are expected to tip!
Just like that, an extra 15-20 dollars gone.
2. Contractors Up Charging
There are a lot of these business gurus who teach their followers how to make more money.
They scream from the top of the mountain:
‘Raise your prices!’
Even contractors who barely have any skin in the game begin doubling their prices because they heard someone on Twitter tell them to.
A lot of contractors will give you a quote for a job.
Then when they begin the job, they upcharge you with a bunch of other services.
“I know I told you it was going to cost you 300 dollars to install the Ring security system… But since you don’t have an outlet in the front, you will have to pay 90 dollars more for me to install the solar panels.”
Blah blah blah.
They may be telling the truth, who knows?
You just know that 90 more dollars is leaving your pocket.
3. Aggressive Homeless People
It’s the worst time ever to be a homeless person.
Most people carry cards on them nowadays, not cash.
Imagine you’re a homeless person who has been asking for money all day in the scorching hot sun to only get rejected.
Eventually, you’re going to be pissed!
The next person the homeless person sees is going to get an aggressive version of them.
It’s because they’re hungry.
Imagine the next person they see is you!
You’ll get intimidated by their demeanor and give them a few bucks.
Imagine if you give a few homeless people a few bucks in a few interactions.
The “few” adds up.
Just like that, more money is leaving your wallet.
Do Your Best to Keep Making More Money
It’s tough to live life nowadays.
It’s a soul-crushing feeling when things become more expensive.
You have been investing in this promotion for the past 5 years.
You finally got it!
But once you get it, life feels the exact same…
Or it feels worse.
Your rent used to be $995.
Now, you’re paying $1500 for the same apartment.
What gives??
Just know that things getting more expensive is not a problem that you’re only facing.
We are all facing the struggle in the context of our lives.
Do your best to keep making more money.
- Do some Uber Eats or Door Dashing on the weekends, rather than just chill at home.
- Start a side hustle.
- Create a social media account, post content on your expertise, collect leads and sell them consulting calls.
- Find clients on Fiver.
- Flip products on Craigslist.
Do something!
Try to build some side income that gives you an extra cushion.
Things will Never Return Back to Normal
There are 2 groups of people in this world:
- Those who try to fight change.
- Those who thrive during change.
Be the latter.
Change is the only constant in life.
Things are never going to return back to normal.
The days of $1.07 McDoubles are gone.
The days of 33 cents per gallon of gasoline are gone.
We are living in a new era.
There will be tons of hard price increases as well as soft price increases.
Live in reality rather than Lala land.
Once you accept your position for what it is, it will be easier to find new income streams.
Each new income stream you add on, the less affected you will feel by the price increases of the economy.
For more insights into mindset and life, check out the Level Up Mentality Book:
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