Money Mail 169 - Your purchasing power decreased 15% in 3 years
Keep The Change
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How to Calculate Your Income in 2020
If you can't remember what you got paid in 2020, I taught you how to find this. But as a general rule this exercise is designed to really get you thinking about inflation and how pay rises get impacted by taxes and inflation. A $250,000 salary in 2020 now needs to be $308,000 in 2023 to buy the same amount of goods and services. Now that would be a small percentage of the population but more people will move towards that as we have more inflation. So if you were earning $150,000 in 2020, if you're not earning $178,000 today you basically haven't gone ahead in real terms.
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