Understanding Inflation's Impact on Your Money
Whether you're planning for the future or navigating the present, economic factors like inflation play a significant role in shaping the value of your money...
What is Inflation?
​Inflation is a rise in the overall level of prices in an economy. This rise in prices can be caused by a number of factors, such as an increase in the cost of production, or a decrease in the currency's value.
Inflation can be good or bad for an economy, depending on the level of inflation and the health of the economy.
For example, a small amount of inflation can be good for an economy because it encourages spending and investment.
But too much inflation can be bad for an economy because it can lead to economic instability and higher unemployment.
How Inflation Affects Your Purchasing Power
Inflation reflects a rise in prices and as a result, each unit of currency buys fewer goods and services.
The value of investments may also be eroded by inflation.
How to Invest to Protect Your Money from Inflation
The best way to protect your money from inflation is to invest in assets that have the potential to increase in value at a rate greater than the rate of inflation.
Stocks, Real estate, Gold etc are some of the examples for inflation beating assets.