David Daniels Babble

How Inflation Affects the Economy & Your Life

By Rory Singh

Article published by The Transition Companies

Inflation affects you directly when you go to the grocery store but find that a hundred dollars doesn’t get you the same amount as it did last year. The same thing applies to the gas station pumps. Inflation is directly affecting not only you but the economy too.

When people feel that a recession is coming on due to severe inflation a domino effect begins to take place:

1. Many people hang on to their money & stop spending on many non-essential items because of fear.

2. Houses & Cars begin to depreciate.

3. Business starts to dry up & employers find themselves cutting down on staff.

4. Our fixed income gets depleted & we find ourselves having to survive on even less.

5. The quality or standard of life that many have grown accustom downgrades as a direct result of inflation.

Inflation can impact your retirement plans.

Nowadays if you look around you will see many senior citizens still working. Most of them are still working because they can not afford to retire on the pension or retirement plan that was set up for them many years ago. The retirement plans were set up long ago when they monetary value could be considered sufficient to retire but unfortunately many seniors find themselves unable to live on such scarce fixed retirement incomes today.

There you have it, inflation directly affects you, the economy, your future & even your retirement.

Can we do anything about inflation?

No not really. Inflation is about as certain as death & taxes. It is just part of life. The economy will always experience good & bad cycles. Some years will be good for business & you will get more for less. Some years will be bad & you will be just barely surviving.

The key is to not only survive but learn how to thrive. Get the financial education that you need & learn how to build wealth so that unstable times will never again have a bearing on your standard of living.

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