Inflation reduces the purchasing power of money over time. When inflation rises, the cost of goods and services increases, eroding savings. Investing in inflation-protected assets like stocks, real estate, and Treasury Inflation-Protected Securities (TIPS) helps counteract inflation’s effects. Understanding inflation helps individuals plan their finances better by adjusting savings strategies and ensuring investments outpace inflation. Maintaining a well-balanced investment portfolio protects financial security during inflationary periods.
How Inflation Affects Your Money
