Ronald Reagan said in 1982:
“Inflation is a virus in the economic bloodstream, sometimes dormant and sometimes active, but leaving the patient weaker after every new attack.”
Much is said about inflation, but no one seems to know exactly what the rate of inflation is, so I thought I’d just clarify:
The rate of inflation for the last 35 years has been 4.07%.
What does this mean for you?
Well, for you to stay even with your living costs, you must double your income every 18 years. Are you prepared to do that? If the average couple reaching age 65 will have one spouse who will still be alive at age 94, that means that they will have lived 30 years after they retired, but more than likely on a fixed income. How will that person deal with an almost 5 percent inflation rate (and possibly higher) for 30 years? Living longer allows inflation to creep in and disrupt all your income plans.
I hope you will feel comfortable contacting me for a no-cost discussion about your personal finances. Call or email me: (801) 292-1099, firstname.lastname@example.org. In that conversation I can talk to you personally about your spending and borrowing habits and help you learn how to immediately get in control of both of them. If you’re not ready to talk to me just yet, you can learn more about what I teach by visiting www.moneymastery.com.
What if 2017 were the year that you could obtain all the following?
- Create a spending plan that helped you get in control of your spending within one month.
- Find an extra $300 you have been wasting that can be applied to debt and savings?
- Create a debt elimination plan that will have you out of all consumer debt within 1 to 3 years and your mortgage within 10?
- Start saving at least 1 percent of your income every month for emergencies and for emotional needs.
- Stop arguing with your partner about money and putting the fun back in your family life.
You can do all of this in 2017, which will be very empowering and get you on the road to actually creating a cash surplus that will allow you to have a wonderful retirement while staying ahead of inflation. Commit to getting on track today!