Inflation | Has No Effect On Your Buying Power

Wages are often "sticky." They tend to lag behind inflation. Even if you get a 3% raise, if inflation is 6%, you have effectively taken a 3% pay cut in terms of what you can actually buy.

There is one specific scenario where inflation "helps" your buying power: If you have a $2,000 monthly mortgage payment, and inflation causes wages and prices to rise, that $2,000 represents a smaller percentage of your total income and a smaller "real" value to the bank. In this case, you are paying back the bank with "cheaper" dollars. inflation has no effect on your buying power

Inflation is the enemy of for savers and consumers. Unless your assets are invested in vehicles that outperform the inflation rate (like certain stocks, real estate, or inflation-protected bonds), your ability to buy goods and services will inevitably decline as prices rise. Wages are often "sticky