Money Mail 169 - Your purchasing power decreased 15% in 3 years
Keep The Change
00:00
The Importance of Understanding Inflation
I've had multiple messages after this saying shit, now that I've gone and done this calculation, it makes sense to me why I feel like I've had such a big pay rise. But one thing you need to understand too is that even if inflation does come down, it's compounding over time. You will basically need $1,800 today to buy the same amount of shit that you would have brought in 2000. 2.5% compound average annual rate over 23 years, creating a 43.8% decrease in purchasing power. If you don't understand this, you will be at a detriment to other people who do.
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