What is Inflation????
By now would have heard about the term "Inflation"...Most of the people wondering about why the hell I/We should worry about Inflation..Yes,You should worry about Inflation.
Here it is why you should be worrying about "Inflation" --
First I would like to Define the Term Inflation :
What is Inflation??
Inflation : The rate at which the rate of the Goods and Services raises.
Who will be impacted by Inflation?
Inflation hurts your standard of living because you have to pay more and more for the same goods and services. If your income doesn't increase at the same rate as inflation, you will find your standard of living declining even though you are making more.
Your savings will buy less and less, so you will need to save more and more. However, everything you buy today costs more, so you have less left-over income available to save.Thus it will affect your retirement planning.
It is also important if you are holding bonds or Treasury notes. These fixed price assets only give a fixed return each year. As inflation spirals faster than the return on these assets, they become less valuable. As they become less valuable, people rush to sell them, further depreciating their value. As their value becomes lower, the US government is forced to offer higher interest rates to sell them at all.
Inflation will impact more on a person from a middle class family because wages creep upwards more slowly than do the prices .
Guys So spend less...........................
Posted byPrashanthNaik at 11:33 PM
Labels: Inflation, Market, Share, Society, Trade
Posts
