While saving money by putting off purchases or just not buying certain items is always a great idea, if the cost of something is going to dramatically increase, you may want to consider buying while the price is low. Spending now to save later is a technique that many couponers use, and the tactic makes sense if you are sure that prices will rise.
Unfortunately, there are always items that increase in price every year and 2013 will be no exception. Read on to discover 6 things that will cost you more in the new year.
New fuel efficiency technology is going to drive the cost of cars up. While new technology always creates higher prices, 2013 will see a more dramatic increase than other years. The Obama administration has recently passed new legislation requiring auto makers to change the engines in their designs to meet tougher fuel efficiency standards.
These new standards are causing the price of almost every vehicle to rise. The Toyota Camry, for example, will increase a modest $175 while the luxury Lexus CT 200h will see a price hike of more than $3,000.
Grocery staples such as milk, eggs, bread and ground beef will all see an increase of roughly 4% across the board. The reason is the record summer droughts that caused farm outputs to be at record lows. Even feed grains and grass were hurt by the drought making it difficult for farmers to feed their livestock, reducing the output of dairy products and meat as well as other grocery items.
Another result of the drought was a reduction in herd sizes for meat farmers. The reduction in herd size will translate into higher meat prices in the coming year as a result of less living animals. A higher percentage of each herd will need to be kept for breeding stock to increase numbers when the drought ends, further decreasing the food supply.
3. Health Care Premiums
The Obama administration passed a universal healthcare law that will soon begin taking effect. The new rules on record keeping and the mandatory coverage for pre-existing conditions will cause premiums to rise. At the same time the number of doctors is expected to decrease, leaving many American’s without adequate healthcare despite the rising costs. Expect your premiums to rise a minimum of 6%.
Beer distilleries use a lot of copper equipment. Copper is becoming more scare causing prices to rise. As copper prices rise the cost of maintaining and operating a beer distillery increases. The increase in production costs translates into a higher price for a pint of your favorite brew.
5. Shipping Costs
If you’ve ever mailed a package you already know that shipping costs are high. However, don’t expect to see any price decreases in 2013. In fact, you should expect the cost to send a package to rise 4.5% to 4.9% with FedEx and UPS. Since a lot of online merchants that offer free shipping use these services, you can expect the minimum order amounts to increase in order to qualify.
While rising tuition costs might not seem like something new, you can expect rates to increase dramatically in 2013. Lower subsidies from states will cause tuition rates to skyrocket 4.8% with fees increasing 3.7% on average.
While costs are rising in 2013, few people are expecting their pay to increase enough to match the increased cost of living. Because of this, it’s going to be more important than ever to carefully plan and budget to make ends meet.