Everywhere i hear talking about how your money lose in value for the exact amount of current inflation (8%). But somehow nobody wants to admit that personal inflation of each household vary greatly and could be much less.
Inflation reports take into account gas, rent, housing prices, food etc etc. Each individual household use these in a different proportion. For example some live in their own house with no mortgage and no intentions to buy a new one. This right away cuts like 30% of personal inflation. Some might be living in the woods and gas is only like 5% of their spendings. This also will lower personal inflation.
So i’m saying that it’s somewhat wrong stating that cash is a worst place to be rn. It depend on where you will be spending it. Having 1000$ won’t lose you 8% to overall inflation if you spend it only on apples. Your 500k won’t lose anything to inflation if housing crashes this year and you buy a house for it’s 2020 price.
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