Inflation is a lot higher than you think and your purchasing power is declining.
from My Budget 360
The cost of living in the US is getting more expensive and the way our banking system is setup, we are primed for continued inflation. Our major purchases are financed with debt and low interest rates so the true cost of many things in our lives are understated by the “monthly payment” mentality that many people live under. Yet there is a major catch since we are addicted to low interest rates and we really can’t go much lower so that silver bullet has now been maxed out. This impacts college tuition, housing prices, automobile costs, and practically all items that we utilize and purchase in our lives. Inflation catches up on you in a slow and sneaky way. Little by little you start to realize that your money isn’t going as far as it once did. We typically see reports showing that inflation is moving along nicely through the Consumer Price Index (CPI) but in reality, things are very much different. Let us compare the cost of living between 2000 and 2020.