I get that the value of money depreciates over time hence why they tell you that the best time to invest is now. But i don’t get how exactly investing now helps you in the future if the cost of living increases with time too anyway. So like let’s say you invested $1000 today and then in the future that’s equivalent to $4250, but then the price of things have also increased so how much richer are you really if you have to spend a lot more in the future anyway?
In: 64
Yup that’s the rat race. If inflation outpaces your investment growth, you get poorer. As your money sits in the bank, you get poorer. If you’re lucky enough to get a raise, but it does not keep pace with rise in cost of living, you are effectively making less money each year.
Have fun!
Latest Answers