You know your expenses have been inflated and your income has been deflated. Did you know that inflation has also shrunk your investments? Thanks to the media, everybody is an economist and knows all about inflation. Or so they’d like to think.
The fact is that most of us have only a tenuous grasp of this complex concept. Because we understand that high inflation affects our expenses, we try to curtail spending. But we do nothing about our investments, which have been as badly hit by rising inflation rates. A high rate of inflation seems inescapable in the foreseeable future, so it might be a good idea to understand how it affects anything to do with money—earning, investing and spending. That’s what we’ve tried to show you in this comprehensive package which attempts to make an intricate subject as understandable and interactive as possible.
There’s no particular order in which to read the following pages; it doesn’t matter if you start in the middle, move to the end and finally read this—you won’t be lost. And if, after reading all of this, you realise that there’s something you can do to protect your finances from the ravages of inflation, it will a step in the right direction.
There is more to inflation than its record spike to 11.6%. Do you know which one of the 5 inflation measures is the most appropriate? Did you know that the inflation in your city is very different from that of the country? Here are some quick nuggets of wisdom:
