Inflation Can Be Deflating
Long gone are the days of piggy banks, and stuffing money under your mattress for safekeeping. There is an invisible force working to take that money away from you. Just because you can’t see it doesn’t mean you won’t feel it (especially in your wallet). That force is inflation. Inflation? Inflation.
Now what exactly is inflation? Basically inflation means prices go up, and the value of your money goes down.
Now let’s go over a little scenario.
Say that you currently have a lifestyle that you need $50,000 a year to maintain. Get ready for a cold reality check on the power of inflation. The average rate of inflation is about 3%, so let’s see what that entails…..
As you can see, in 25 years, you’ll need over 2x the amount of income you currently have, just to maintain your same lifestyle. In 40, that number goes up to 3x your current needs.
Inflation is a powerful force that needs to be accounted for. You can’t combat it by putting your savings away in something that won’t start earning interest for you. You need to INVEST! Invest in stocks, invest in bonds, invest in real estate, invest in yourself. Whatever you want to do, and whatever you feel comfortable with. But, before you jump into anything make sure you do your research. YOU can beat inflation, all you have to do is DO IT!