Let’s talk about something that might sound boring at first but has a big impact on our lives: INFLATION. Yep, that’s right – the sneaky invisible thief that quietly bites away at the purchasing power of our hard-earned cash. No matter how many Ring cameras you have installed in your home, catching this thief is utterly impossible. But fear not! Let’s break down what inflation is all about by looking at a delicious slice of cheese pizza.
Pizza Is Life
Who doesn’t love pizza? Pizza comes in all different shapes, sizes, tastes and styles. From your classic New York slice, Chicago Deep Dish, Detroit style, margherita pizza, Hawaiian pizza, and tandoori paneer pizza are just a few. Which one is your favorite? But for me the classic cheese pizza just sits differently when it hits the palate. The right amount cheese bubbles, crispy outer crust with a simple basil and tomato sauce is the perfect canvas because you can add any toppings of your choice.
Hungry yet? I certainly am. Pause here. Call your local pizzeria and order your favorite pie so by the time you are done reading you can enjoy a good slice. As abundant as pizzerias are in the world, it’s so popular that if you wait too long someone else will take your slice. After all, who likes a pizza thief? I’m just kidding there is no such thing as a pizza thief.
But did you know that we are all being robbed by a sneaky invisible thief in broad daylight? Yes, that is right. All thanks to our good friend Mr. Inflation. Mr. Inflation is such a seasoned mastermind that he robs us all at once, even after giving us a warning.
What Is Inflation Anyway?
So, what exactly is inflation? Simply put, it’s the rise in the prices of goods and services over time. You know that feeling when you go to your nearest pizza place and suddenly it costs more than it did last year? That’s inflation at work! That is Mr. Inflation stealing from your hard earned income. Whether it’s the price of groceries, clothes, or concert tickets, inflation means your money doesn’t stretch as far as it used to.
In 1990 at the time of the first Home Alone movie, the average price of a large pizza was $12. Today, the average price for a large pizza is nearly $20. This means with $120 in 1990 you could buy 10 pies, while today you can only get 6. That’s 32 slices that have been gobbled up by Mr. Inflation!
Why Should I Care?
You might be wondering, “Why should I care about some boring money concept?” Well, here’s the deal: inflation affects everything. From how much you pay for everyday stuff to the value of your savings. Let’s say you’ve been saving up for that dream vacation or for a down payment on a home. If inflation keeps rising, the cost of those things could go up faster than you can save for them, putting your goals further out of reach. So, in simple terms, you will have to wait longer to get what you want or sacrifice and get less of what you want.
Become a Savvy Investor
Beating Inflation at Its Own Game: There are ways to beat inflation and make sure your money keeps working for you. There is no escaping Mr. Inflation, but there is a way to put up a fight against him. By becoming a savvy investor you can protect what is yours and not have less pizza to enjoy.
- Invest in Yourself: One of the best ways to stay ahead of inflation is by investing in yourself. Whether it’s through education, skills development or pursuing your passions, investing in yourself can lead to higher earning potential and better job opportunities. Aim at getting better and better at what you do.
- Start Investing Early: Time is your best friend when it comes to investing. By starting early and letting your investments grow over time, you can harness the power of compounding to outpace inflation building wealth for the future. Also, you don’t need hundreds or even thousands of spare dollars to start. Start with $1.
- Diversify Your Investments: Don’t put all your eggs in one basket! Diversifying your investment portfolio across different assets, such as stocks, bonds, and real estate, can help spread risk and protect against the erosive effects of inflation. Remember, it’s all about balance and finding the right mix of investments that align with your goals and risk tolerance.
- Stay Informed: Knowledge is power when it comes to managing your finances. Stay informed about economic trends, monetary policy decisions, and market developments that could impact inflation and your purchasing power. By staying ahead of the curve, you can make informed financial decisions and adjust your strategy as needed to navigate changing economic conditions.
More Pizza & More Joy
It’s time to look into the horizon. We want to be able to buy the same amount of what we bought in the past, today and even in the future. The trick is to stay ahead of the game. Mr. Inflation will always be there trying to rob us in broad daylight. But if we play the game right inflation can even work in our favor instead of against us. Which ultimately means more pizza and more joy….and no skimping on the toppings 🙂