Inflation is still WAY too high. Compared to this time last year, inflation is up 6.0%, which is slightly lower than last month’s reading of 6.4%.
Even though inflation is “going down” it doesn’t mean that the price you’re paying for things is lower today than a year ago. It’s actually HIGHER. Inflation going down just means that prices are rising at a slightly slower pace than they were, but they are still way higher than the past.
What’s been driving inflation to stay this high? Unfortunately, it’s a lot of the essential stuff that all of us have to buy. Grocery prices are up over 10% since the last year. Utilities, like gas and electric are both up double digits too.
Where does this leave you? The same rules apply to you as always. Focus on what is in your control. Stick with your investment plan. Spend less money than you make. Keep enough cash to cover an emergency. Invest the rest! If you do those things you’ll become very wealthy over time, despite whatever is happening with inflation.
As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.
-Vivi & Shane
