Investopedia defines “inflation” as “the rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.” Perhaps you already know what inflation is, but have you ever considered its effect on your financial life — both in the present and the future?
As inflation builds over the years, you may find it more difficult to meet your financial needs and goals. Not only will your money lose its purchasing power, but your savings will lose its value, too: the interest rates of traditional savings accounts are currently lower than inflation rates.
While investing has its share of risks, not investing all but guarantees you will lose money over time due to inflation. And as the above infographic from Jemstep shows, even though inflation affects investments, investing can still produce a positive return.
For more information, including investment tips on beating inflation, check out the full infographic here.