How hard is inflation REALLY hitting you? Statistics for the entire country are one thing, but inflation hits everyone differently and in different ways. Fortunately for you, there’s a way to figure that out.
Here’s Five Fast Facts on Personal Inflation:
- 📊 What Is It? - Personal Inflation is different for everyone. For example, if you live in the city and rarely drive, you’re not hurt as badly by gas prices. Homeowners don’t have to deal with a landlord raising rent, but renters don’t have to deal with maintenance. Every situation and person is different.
- 📈 Step One - Let’s figure it out. Get your credit card bills, bank statements, and a list of day-to-day expenses for the most recent month. (Let’s say you’re using November 2023.) Next: add them up for a total for a single month.
- 📉 Step Two - Take that month and compare it to November 2022. Find the difference and divide it by your monthly expenses for the most recent month.
- 🏦 The Results - The result is your personal inflation rate. If it’s below the current rate of 3.2% (as of this writing), inflation isn’t hurting you as much as you might think.
- 🧮 Working For It - Bear in mind you’re probably making more than you were last year. In fact, the average wage is up 6.1%. If you’re paying more for the same items but your income isn’t keeping up, then your overall quality of life is going down.
🔥Bottom line: Our spending should always be seen through a lens. The media may have you worked up over inflation, but it may not hit you in the way it hits your neighbor. It’s easy to get mad about a vague statistic, but the reality may be completely different for you.
What’s your personal inflation rate?
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