Puffery – Inflation

52 Simple Ways to Manage Your Money – 31. Puffery – Inflation

What it is …

The erosion of your principal through increased cost of goods and services.

How it hurts…

It is difficult to see concretely and difficult to understand.

Forces you to save larger amounts in order to equal the same buying power in future years.

Some items, such as medical costs and education costs, increase faster than the rate of inflation.

Gives you fewer goods/services for the same money.

Key items to look for…

The annual figure, often called the Consumer Price Index.

Time …

Ongoing attention to inflation reports.

Key to action …

Be alert to information on the rate of inflation.

Monitor investments regularly to make sure the returns are higher.

SET IT UP

Inflation is an external influence on your plan, over which you have little control.

STEP ON IT

Be aware that others will be suffering the same disadvantage as you.

STEP ON IT +

There are steps you can take to minimize the effect. Planning ahead for extra savings is one.

Notice…

Your willingness to pay attention to financial news.

But what if …

Inflation increases?

Adjust your investments accordingly.

Thought primers …

The good thing about listening to financial news…

The bad thing about listening to financial news…

When things seem beyond my control, I…

If I have to think about investments and inflation…

Sometimes I feel.. .

Puffery - Inflation
Puffery – Inflation

“There are plenty of good five-cent cigars in the country. The trouble IS they cost a quarter, what the country really needs is a good five-cent nickel” –Franklin Pierce Adams

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