Inflation question

[Animorph]

The ratio of savings to spending is getting worse. That can't be good.

[pb4uski]

Quote:

Originally Posted by rayinpenn Point of order... If your income grows at the same rate as inflation you've neither gained or lost ground... $300k earning zero interest is a mistake...

Agree but you overlooked this part:

Quote:

Originally Posted by jqrz ....Hypothetical 2 yr scenario:....

[jqrz]

Thanks all for the feedback... It has given a better understanding of how inflation works. I perpetually find the issue confusing, particularly since the expenses haven't really gone up much - but it is true, i may not be spending it on some truly inflation-measured things. It is a hypothetical scenario - in actuality, I do have my money in investments that have earned around 4.5% (avg yearly) so far. With the amount that I have been spending for the past 2 years, I have nearly the same balance that I had 2 years ago which, i'm afraid, isn't good