Mel Abraham explains how inflation quietly destroys your money's value. At 3% annual inflation and under 1% savings returns, $100 becomes worth $74 in ten years. You lose about 2% of purchasing power yearly by keeping cash in low-interest accounts, so you need assets that outpace inflation.
Here's a leak you can't see happening. $100 today is only worth $74 in 10 years. That's not you losing money. That's you losing purchasing power. See, if your savings account pays under 1% and inflation runs around 3%, you're losing 2% a year just sitting there feeling like it's safe. See, saving alone will never get you there. Inflation happens whether you plan for it or not. The fix isn't complicated, though. Money needs to be in things that outpace inflation, not just parked somewhere that feels safe.
