With sharp increases to the price of goods and services, where’s all this extra money I’m spending going?

Question

Don’t try to tell me my wages are sharply increasing either, because they’re not! Nor are my friends, family, or neighbors.

In: 113

Answer 1

Things aren’t just getting more “expensive” because if supply constraints . Your money is losing its worth too. Your money is worth less every month.

That’s essentially what inflation measures. The reduction in worth of a currency.

So when the fed announces that inflation for January 2022 is 7.5% which is the highest it’s been for forty years, it’s time to start learning a little about personal finance and be smart about it.