While some people who believe global warming isn’t a legitimate issue to be concerned about, most economic and geologic signs point towards global warming. Many people believe that global warming only impacts the weather, but it actually will impact the economy as well. In one way or another, much of this impact may end up having a negative effect on your personal finances. Here are a few things to watch out for:
1. Cost of Food
Global warming means a significant change in the weather patterns across the world which, in turn, will also have an affect on agriculture. As such, this means it will be harder and more expensive to produce food. This will cause the price of food to drastically rise and may have a fairly large impact on your weekly grocery bill.
2. Extreme Weather Disasters
We’ve seen a startling amount of natural disasters around the world in the last decade or two, and a lot of them have been attributed to global warming. If a tornado, hurricane, earthquake, or other natural disaster has happened where you live, you already know how devastating it can be emotionally, physically, and financially. If more natural disasters continue to occur, it can seriously hinder the economy of those areas. In some cases this means a stoppage of goods productions which could drive up prices and accessibility.
Global warming can also cause a rise in the spread of diseases. Many of these infectious diseases are affected by climate change or the contamination of food, water, and air. An increased risk of disease means more medical bills and vaccinations.
4. Healthcare Costs
In addition to an increased risk of diseases caused by climate change, there are other associated healthcare costs which may hurt your finances as well. For instance, you may need to start paying more money for access to vaccinations and medications. Sudden climate changes can also cause issues with your immune system and make you more susceptible to getting sick.
5. Cost of Utilities
Just as global warming may impact agriculture and the cost of food, it may also have an impact on the coal, oil, and natural gas. Many of the areas where these resources are found are prone to natural disasters, which may end up making coal, oil, or natural gas scarce, thus increasing the price. If you’ve noticed your utility bills slowly increasing in price over the years, this may be one of the reasons why.
6. Insurance Costs
One of the biggest risks associated with global warming is how it will impact insurance costs for businesses, real estate, and home ownership. With the increased occurrence of natural disasters, home and real estate insurance has risen. Many areas that currently have flood or earthquake insurance may see an increase in insurance costs. In fact, some areas of the country have already seen insurance plans increase in cost.
7. Real Estate
With the possibility of coastal cities eroding or other areas being destroyed by natural disasters, the cost of real estate will most likely rise. Global warming is predicted to increase migration to more stable areas, and this will most likely cause a severe increase in price for houses or rental units as well as real estate tax and insurance.
8. Increased Cost of Transportation
Anyone who has experienced a natural disaster or onslaught of bad weather knows that transportation infrastructure is often one of the first things impacted. With so much climate change and potential for natural disasters or disturbances, there’s a chance that many cities’ infrastructure will crumble or be badly in need of repairs. On a broader level, this may mean an increase of taxes in order to fix roads or transit systems, but on a smaller, more personal level, this may mean having to buy new tires for your car that much more often or having your vehicle undergo significant repairs.
9. Home Repair and Upkeep
Global warming may also cause you to spend more repairing your home. If your city or town experiences significant weather changes, you may have to update your house accordingly. This may mean ensuring that your house is weatherproof or making sure that you have the right type equipment to deal with severe summer or winter weather.
10. Economic Issues
The impact global warming has on the overall economy is a big issue many people are worried about. Global warming may mean a decrease in production of certain goods or industries, which could mean job loss and even more economic hardship. This results in shifting market prices for goods and services, and those prices will more than likely be increased instead of decreased. On a local economic level, any natural disaster or huge shift in the economy will probably affect your personal spending.