Many goods are slated to increase in price in 2011, such as gasoline, grains, chocolate, and even fast food! It has been frustrating and a little depressing to read these economic predictions.
However, there is good news: some things are actually expected to decrease in price. This is especially useful if you are one of the many people who made the New Year’s resolutions to spend less and save in 2011.
3 Things that May Cost Less in 2011
1. Electronics
Due to the rapid growth of the technology sector, prices of electronics are expected to decrease this year. Of course, this has been the trend throughout the history of technology. As we develop more and more complex technology, what was previously considered cutting edge quickly becomes outdated. Remember a year or two ago when the Amazon Kindle was several hundred dollars? Now you can get one for only $139. I recently saw an ad for a 32-inch LCD HDTV for a little over $200 – we bought one only four years ago for $1,000 more than that. And chances are the hottest televisions with LED TV technology that cost $1,200 today will likely be sold for about $200 four years from now.
So if you didn’t get that iPad that you wanted for Christmas, maybe you’ll be able to get it at an amazing price in 2011!
2. Homes
Depending on what side of the deal you are on, this could be a positive or a negative. According to S&P analysts, residential home prices are expected to drop somewhere between 7% and 10% before they finally stabilize. The reason behind this logic is that winter tends to be slow for the real estate market. The inventory of homes will increase but the demand will not over the next few months. Additionally, there are still a large number of homes in foreclosure, which is driving down home prices.
Since interest rates are still low, this would be a great time to buy a house if you are in a place financially to do so or begin investing in real estate. However, it may not be a great time to refinance your home mortgage since banks are tacking on more and more fees.
3. Concert Tickets
Concert attendance fell 16% in the summer of 2010 compared to the summer of 2009, despite the fact that many promoters were running special deals on tickets. Additionally, since album sales have been poor due to the economy, many musicians are hitting the road for tours in order to increase their revenue. This will also drive prices down. If you have been missing out on events that you would have liked to attend, go in 2011 while the price is right.
3 Ways to Save Money in 2011
1. Group Buying
Yes, chocolate prices are expected to go up in 2011, so if you are a chocolate addict like me, keep an eye out for deals on Groupon, Living Social, or one of the other group buying daily deals sites. Many of these sites offer great deals on various “luxury” items that you may have bought in previous years at full price, but now the full price is above what you are willing or able to spend.
2. Consume Less
If you have to commute to work, consider carpooling benefits. If you are a coffee drinker, order a smaller size cup (or make your own homemade coffee drink recipes). Fortunately, some of the things that are increasing in price (like fast food) you are better off consuming less. The increase in prices can actually be a positive thing if you do reduce your consumption and that results in you getting in better shape, losing weight fast, and helping out the environment.
3. Use Coupons
Many consumer goods are expected to increase in price because the cost of packaging is expected to increase. So now is the time to learn how to effectively use discount grocery store coupons. It is possible to save up to 60% of your grocery bill with extreme couponing!
Final Thoughts
The predicted increase in prices is a reality of the world we are living in, and unfortunately, there is not much we can do as individuals to change the situation. Therefore, we must change our attitudes and habits and not worry over the news of price increases. Focus on the positives and consider the many things that you can do to save money. You will be happier and healthier – and more financially sound – if you do!
