Stuff generally gets more expensive over time.
I never really thought about this until recently, but it’s true. That’s just how it is.
Inflation makes it so important to grow your income – otherwise you’re actually going backwards. Develop your skills, progress your career, maybe start a business (and get a good accountant for the self-employed).
Inflation makes it so important to invest. Saving is great and necessary, but it will only get you so far. Investing is what really gets you ahead.
To me, inflation also matters when it comes to making decisions around housing. House prices keep climbing here, but so do rents. Hard as it was to get into the market, I believe it was the right choice for me and will continue to be years down the track. (Not to mention all the non-financial benefits to boot…)
Inflation is a fact of life. I feel like this would have been a really good lesson to learn in school!
You can’t avoid inflation – you can only try to beat it.
Glad you got a house at a good time for you. I agree that the power of inflation was lost on me for a time, too. It seems insignificant but certainly adds up over time.
So true! Housing/rents here in Toronto are astronomical and getting worse. My spendy partner refuses to downgrade to a cheaper place (feels like it downgrades our standard of living – which I’m okay with! – but he’s not) so my only choice is to make more money so my side of the rent doesn’t eat up such a chunk of my income. Due to this, I have gotten my a$$ in gear completing an industry course, and have been on 2 informal/information interviews to get my foot in the door with a higher earning job role. My climbing rent has genuinely been a huge motivator for me in doing so!