Just a reminder that inflation is a thing. $13,000 is the new $10,000.


Over the past 3 years, the government devalued our wages, but also our lifetimes of savings by more than 30%. That is you lost over 30% of your purchasing power on every dollar. If you bought a block of wood, a nugget of gold, a house, a car, a hammer, eggs, shares of a company, an I-bond, or even crypto just 3 years ago, and you want to trade it for dollars today, you need to get 30% more for it just to break even. Who in their right mind sells investments to break even? Especially useful and valuable investments.

However, it’s actually worse than that if you account for specific needs. For example, you’re going to need a much larger return if you were saving for a car or house. Again, JUST to break even. You see, inflation or rather the devaluation of your dollars is about purchasing power for the specific goods YOU are saving for.

submitted by /u/timeistheonlymoney