Our daily financial decisions and long-term financial planning are affected not only our personal values and life situations (i.e. stages in life), they are impacted by larger economic factors one of which is the greasy, mean factor of INFLATION.
Inflation, simply stated, is a rise in the general level of prices. In times of inflation, the purchasing or buying power of the dollar decreases. So, if prices increased 10% during the last year, an item that cost you $100 to buy then, would cost you $110 now. Similarly, with an inflation rate of 5%, something that cost you $100 last year, would cost you $105 today.
So when there is high inflation, your money is essentially worth less, more quickly because it takes more money to buy the same amount of goods and services.
For those of us on a fixed incomes or limited incomes, inflation is our enemy. Think of our retired relatives or our family members with little opportunity to increase their earning powers, their ability to buy the goods and services that they want is less likely, let alone the goods and services that they need.
If you need deeper work around healing your relationship with money or overcoming your blocks and fears, maybe it’s time for some money therapy.