Inflation is here and it is changing the way people manage and spend their money. This episode assists in listeners' better understanding of what inflation is and how they can discover how to navigate it throughout 2022 and beyond.
What is inflation? Inflation is the increase in the price of goods and services over time. Inflation causes your buying power to erode, meaning that the same dollar today buys less in the future. The bottom line to this story is too much money chasing too few goods and services.
What is causing the current challenge when it comes to inflation? The market power and the poor media coverage of this market power have provided corporate America with price-gouging that is fattening corporate profits, it's all about shareholders. Sadly, inflation is hurting American households, but the underlying cause of inflation is a lack of competition in addition to corporate greed.
Here are a few factors that cause inflation:
The financial takeaway: Inflation, generally around 2% per year, is a normal part of our economic system. Under normal financial circumstances, this means that your money is worthless each year unless it is gaining an interest rate greater than or equal to inflation. To ensure that your money is keeping pace with inflation, consider annual salary increases or cost of living adjustments by your employer.
Investing your money is also an effective tactic to beat inflation as well. The interest rates you earn on your savings accounts will not likely cover the rising prices. The only caveat is if you have funds invested that are earning a higher rate of return than the inflation rate,
Paul Lawrence Vann has one last thing to share and it is this, recommend Wealth Academy Podcast to your friends, family, and colleagues. Please go to Apple Podcasts and subscribe, rate, and review his podcasts, we thank you for being so amazing. Apple Podcasts link: https://apple.co/3hb6QyY