#FinancialPlanning #WealthManagement #Inflation #Investing #RandomThoughts
Have you ever stopped to think about the future value of money? 💭 Imagine this scenario: You receive a lump sum of 1 million dollars in 2088. Sounds like a dream come true, right? 💰💸 But what if I told you that 1 million dollars in 2088 will be worth only $100,000 in 2024 dollars? 😱 Let’s break it down and explore the impact of inflation on your wealth and financial planning.
The Impact of Inflation:
Inflation is the gradual increase in the prices of goods and services over time. This means that the value of money decreases as time goes on. In other words, what you can buy with $1 today may cost more in the future due to inflation. The purchasing power of your money diminishes over time, making it essential to consider inflation when planning for your financial future.
Real-Life Example:
Let’s say you have $100,000 saved up in 2024. Fast forward to 2088, and that same amount will only have the purchasing power equivalent to $1,000 in today’s dollars. This illustrates how inflation erodes the value of money over time and why it’s crucial to factor inflation into your financial planning.
Strategies to Combat Inflation:
1. Invest in assets that historically outpace inflation, such as stocks, real estate, or commodities.
2. Consider investing in Treasury Inflation-Protected Securities (TIPS) to protect your investments from inflation.
3. Diversify your portfolio to mitigate the impact of inflation on your overall wealth.
4. Regularly review and adjust your financial plan to adapt to changing economic conditions.
Plan for the Future:
By understanding the impact of inflation on the future value of money, you can make informed decisions about your financial planning. Remember that $1 million in 2088 may not be as valuable as it seems in today’s terms. Take steps to combat inflation and secure your financial future for generations to come. 💪💵
In conclusion, the value of money is not set in stone and can fluctuate over time due to inflation. It’s essential to consider inflation when making financial decisions to ensure that your wealth retains its purchasing power. Start planning for the future today and make your money work for you in the long run. 🚀📈 #FinancialFreedom #InflationProtection #MoneyMatters
Looking at actual buying power though that $1 went a longer way. [https://youtu.be/Xlx8hbFaoJk?si=Yxvptyidbg3g_hr9](https://youtu.be/Xlx8hbFaoJk?si=Yxvptyidbg3g_hr9)
It’ll be a lot sooner than that
Oh so this money thing is not so old after all
And minimum wage will still be $7.25.
Better buy a house now then. That million dollar pos will be worth 10 million then.
the saddest part about this is 100k today was basically the same as 80k just 4 years ago.
Ah yes, extrapolation. The most accurate way to estimate things ever created (/s)
Fuck I still won’t be a millionaire
Hopefully I’ll be long dead by then
If you made 5000 a day since Christopher Columbus landed you still wouldn’t be a billionaire.
Dude has a marker and whiteboard in their shower
Nah, if I live anywhere near that long I’d be 104. And at some point having exhausted all options I’ll just go steal a Lamborghini and go on a high speed chase through 15 states So I get free room and board for the remainder of my life.
Sounds like the rule of thumb of “have a million to retire comfortably” is wrong now
Make sure to invest your money and you won’t need to worry. This has always been the same story since the 1800’s. A penny use yo go a long ways. Now Canada 🇨🇦doesn’t even have pennies
In 2088, we’ll be trading bottle caps
So 10 million becomes the new baseline (and even still probably would wanna be closer to 20 million lmao)
So, stuffing your money in the mattress isn’t the best investment strategy.
$1,000,000 invested for 56 years, at 10%, will grow to $208,000,000
It feels like I’ve seen this already or at least 5x. When I was a kid millionaire was wealthy. Now it’s just well off and you probably have a nice house. You probably need $10m to be wealthy now.
Not like I’m going to have either one of those.
If you stick $100k under your pillow, it will still be $100k though. You need it to earn income to match or beat inflation otherwise you’re going backwards.
If inflation stays the same rate then I agree with you. However as inflation increases, the chances of a economy crash increases and the higher the coin value is determines how bad the crash is.
There’s a higher likely chance that we will experience the great depression before then. Which will more than reset the inflation rate oh and probably all our livelihoods too since we don’t know how to grow food properly anymore
So 2088 millionaires are basically poor fucks
Will probably be some kind of world currency by then but the way it’s going 300-400k will probably be the average amount needed for basic necessities.
Keep voting the two party system folks…this is your future.
I don’t like this math
Americans don’t know how good they have it, the USA is literally one of the countries with Less inflation in the world
At some point kids are gonna be making jokes about how granddad says soup used to only cost $10k a can.
Fortunately I’ll be dead.
Minimum wage still won’t be $20 lmao
Good thing I’ll be dead by then.
Hopefully that will be our retirement money at work.
Wow, a post that breaks 3 of this subs rules simultaneously!