As from April 2013 my Journey in Investing is to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

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This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

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Sunday, 25 November 2018

Have We truly Understand How Inflation Affects Us And Our Retirement Planning?

Read? How Inflation Affects Your Cost of Living

When the Going Gets Expensive

It’s easy for most people to feel the effects of cost-of-living increases in their daily life. But rising prices hit the lower and middle classes especially hard. Higher food, gasoline and utility costs mean less money remains once these necessities are paid for, leaving little for savings or discretionary spending. To compensate for the rise in prices, consumers tend to buy less, switch to less-expensive substitutes or drive farther to find bargains.

Uncle8888 is still trying hard to understand how (1) past inflationary rate has actually affected his household living expenses as compared to theoretical extrapolation based on 2.5% yearly inflationary rate; and (2) future yearly 2.5% inflationary rate starting from 2019.

1 comment:

  1. When you discover the secret, then please let us know.

    Like you I have personal expenditure going back a decade. There is no clear pattern to it. The only item that shows a constant climb is my health insurance and rent, which increase each year. All the rest just bump around.

    Going forward I take the maximum spend in each group, food, rent, fuel, internet etc and use that number to plan the future. This makes it very conservative, as there is then a lot of discretionary expenditure which I can fine tune on a yearly basis.

    That is about the best solution I have come up with.


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