40 Years Of Inflation, Explained Through Ferraris
Saving money was once a great habit to have. But it won’t be too helpful in 2020 and beyond.
If you put $45,000 in a savings account for 40 years, you’d make less than $1,000 in interest
That’s not a great return. Savings accounts are nowhere near as lucrative as they once were. Today’s interest rates provide such a slow trickle you’re not exactly “growing” your wealth. Very much the contrary — you might actually be shrinking your wealth by leaving too much of it in savings for too long.
Three months ago, I read a post by Tim Denning warning us about the dangers of inflation and highlighting the importance of investing instead. Particularly as the drama of 2020 reaches its climactic ending. Tim is not alone on this. Lots of people are poking at the bubble we currently live in. And one piece of advice seems consistent: beware of inflation.
But inflation is a hard thing to fully wrap your head around. Purchasing power is abstract. I don’t know what “a lot” of money was back in the 80s — how much did a trip to the grocery store cost? What was my rent or mortgage payment? How much did I have to earn to be “rich”?!?
