Catching up with Inflation

Cash is the riskiest asset to own in an inflationary economy.

While we must set aside adequate money for living needs and emergencies, having too much money means that our wealth will deteriorate over time.

Let's take a look at this calculator

I was having a discussion and explaining to my mum about inflation over dinner last week and I chance upon the easiest way to explain to her in lay-man terms, with the help of

MAS Inflation calculator.

So a "basket" worth of goods and services that cost $100 in the food category in 1961 would cost $464.64 in 2019.

However, it's also true that during my parent's era. Financial literacy wasn't that readily known, or how to invest with a trusted broker to grow their wealth with different asset classes but that shouldn't be the case now.

And I suppose you would also agree, if there is no growth to our assets, it also guarantees a loss to the value of our cash savings for the future. What is alarming is the

Purchase Power with the same dollar note that we hold.

As the saying goes: "Production is the only answer to inflation - Chester Bowles"

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#JustinInCase: The above information is provided for general information only and does not constitute financial advice. While we have taken care to check the source of the information, we cannot guarantee that the information is accurate, complete or will suit your individual financial needs. Please refer to the original source for more details.