What Is Inflation?
Inflation is the rate at which prices rise over time, reducing your purchasing power. At 3% inflation, $100 today buys only $74 worth of goods in 10 years.
See how inflation affects your savings with our Inflation Calculator.
The Real Cost on Your Savings
$100,000 at 1% interest loses purchasing power every year if inflation exceeds 1%. After 20 years at 3% inflation, it buys only ~$55,370 worth of goods.
6 Strategies to Beat Inflation
- Invest in stocks: Historical ~10% annual returns (7% after inflation). Use our Investment Return Calculator
- TIPS: Treasury bonds that adjust with CPI
- Own real estate: Values and rents rise with inflation. Try our Mortgage Calculator
- I Bonds: Up to $10,000/year, adjusts with CPI
- Negotiate your salary: Use our Salary Calculator to know your numbers
- Avoid holding too much cash beyond your emergency fund
Start by understanding your exposure with our Inflation Calculator.