How Does Inflation Affect Me

Inflation is something that affects everybody in different degrees. It depends on what currency you do your transactions in, and it involves what country you live in. But for some people, it affects them quite a little amount.

I have the majority of my money in gold bullion, and gold is remarkable in the way it preserves its value. So while the Canadian dollar and US dollar continue to lose value, gold will generally be able to buy the same things in five years as it can today. But even though my “worth” is not being devalued by inflation to the degree that it does to most people, it affects me in the way of what I can buy. Many things are more expensive than others as inflation rises. The largest reason for inflation is governments printing money, and therefore devaluing the currency. And the way that the money is distributed into the economy is through government spending. The fields that government spends in, will receive money far quicker than companies that compete with the government, and the prices will rise in those fields much earlier, than the others. So in some fields, we will get “less bang for our buck”, until the others catch up, and we will get less bang for our buck in all fields, and that will be considered the new standard.

So in conclusion, Inflation does affect me, but not as much in the way of my money being devalued.

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