Inflation and how to protect your financial future.

Traditional thinking has indoctrinated society with the concept that in a perfect world, kids growing up must attend school to get good grades and get into a good college to get their degrees.

Once they get a degree, they can pursue their chosen career path by working at a firm or job where they’ll earn a paycheck and make more money for someone else (their boss).

With enough goodwill and fortune, you could get a 401k account or pension plan, allowing you to retire successfully. Yet, there is no such thing as a perfect world.

Yet, people naturally tend to focus on their present expenses and not so much on their financial future.

But what about your financial future? People must learn to educate themselves about inflation to have a sound financial future.

What is Inflation?

Inflation is when there is a general increase in prices while there is a simultaneous fall in the purchasing value of money. Inflation is not just limited to the United States; it is a worldwide phenomenon.

Major influencers

Oil: Oil prices affect inflation by a considerable margin. Gas and fuel specifically come from crude oil itself. In the present world, many commodities depend on oil usage. Without it, humanity is forced to look into alternative ways, such as natural gas and solar power; still, oil’s impact is significant enough. Nowadays, the countries that produce the most oil tend to be the ones that control the world; companies make millions of dollars from oil. So, the answer is simple: oil is not losing much value anytime soon.

Health Care: Rising medical costs, including vaccines, equipment, and staff staying healthy, become expensive. Some states have laws requiring all companies operating in said state to offer their employees health insurance and sick pay. One can argue that mandated health insurance is a good thing. However, it does not help offset the rising costs associated with inflation. Thus, it only keeps people insured. The United States’ health care system is essentially a business, unlike other nations.

Cost of goods: The cost of goods tends to rise every year. Due to these rising expenses, workers often ask for higher wages to help pay their medical bills, interests, and overall cost of living.

Those aren’t all the influencers; there are plenty more. Just understand that your financial future is at stake here, and educating yourself is the best way to combat it.

Conclusion

It is universally agreed that saving money will help you tomorrow, and indeed, that may be true, but let me ask you: Is your definition of tomorrow the same as that of your neighbor?

By better understanding the negatives of inflation, employees can be expected to make wiser financial decisions as they manage their money. Allowing for a better financial future.

For more, click here.

Other

This article is based on a previous college essay; its information is relevant enough that I felt compelled to share some of it with you, my dear reader.