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A couple of weeks ago in this newsletter, I talked about inflation and the contribution “taste inflation” makes to the increasing expense of life. But there’s another side we need to acknowledge as well.
And that’s realizing how many things are cheaper than they used to be.
Great leaders are not all made out of the same stuff. They just know to lean into their strengths.
And we must also lean into what’s working, what’s better, to ultimately find success. In that spirit, let’s see what we have in our lives nowadays for way less than it used to cost.
First, there’s the more obvious stuff, like technology goodies. I remember paying $4,000 for my first computer set up, a laptop and accessories to take to college in 2001. Now I could get a good enough college laptop for 1/10th of that cost. I think I paid around $50 for a USB drive for my dad one Christmas; now they’re given away for free as swag.
Next, let’s talk about technology services. Home internet, home phone (VOIP, in particular), and cell service have all been ticking down over the past decade or two. Anyone paying per minute for internet or cellular anymore?
Even cable is coming down after all the cord cutting and proliferation of competing streaming services. It’s also worth mentioning that contracts have been largely dropped, adding another layer of greater cost control.
The cost of green energy options has also plummeted, with solar panels for your home becoming less than half the cost they were a decade ago. Likewise, electric and hybrid cars have become increasingly accessible. After adjusting for inflation, the sticker price on a new Toyota Prius is about 20% less than 20 years ago. Plus, with 20 years of availability, getting a used Prius (obviously a less expensive choice) is a much easier deal than it used to be.
Gas prices are always up and down, but if you look back at when they spiked in 2008, our prices today are no worse… and that’s saying something for a comparison to 16 years ago.
Last but certainly not least… mortgage rates. Yep, that’s right. While they’re no longer rock bottom as they were a few years ago, mortgage interest rates are still a very good deal. Through the 1980’s they were double. digits. Soak that in – mortgage interest on par with credit card interest.
The time with mortgage interest rates below 5% just happened for the first time around 2009 (post housing-induced financial crisis). So, yes, it was a good decade-long run having dirt cheap mortgages, but they’re still a very good deal when you take a longer historical perspective.
Perception is reality, so soak these factoids in a bit and embrace that a lot of life is getting cheaper. That’s worth celebrating!
And, for what it’s worth, I saw $7 raspberries at Safeway last weekend… but they were only $1.50 at Aldi. Just sayin.
If you change the way you look at things, the things you look at change.
Wayne Dyer
You have an ideal in your mind, and you’re measuring
Adapted from Dan Sullivan in The Gap and The Gain: The High Achievers’ Guide to Happiness, Confidence, and Successyourself[prices] against your ideal, rather than against the actual progressyou’ve[prices have] made. This is why you’re unhappy…
I hope you enjoyed this edition of Under 2, an email series designed to share quick bites of wisdom to empower your financial journey (while keeping it short). Be sure to sign-up below to get these messages in your inbox.
All for now,
Lindsey