We all know that money comes and money goes. But money's value decreases over time. Right now money's value isn't based on anything. It used to be based on gold, but right now it just has an imaginary value that we give to it. Money's value decreases because of a phenomen called inflation. It is on average about 3% every year. This means that your $1 today will be worth $0.97 a year from now. This is because money keeps getting printed. Also prices keep going up. And basic Economics says that if there's more of a product it's value decreases and vice-versa. $0.03 may not seem like much, but it adds up. In fact $100 in 1975 has the same buying power as $475.75 in 2018. Now the difference is huge.
In the next blog post I'm going to show you what to do instead of saving money.
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