Straits Times just published a very good article yesterday on inflation corroding the value of money. It gave suggestions on how to stop our money from shrinking. Click on news-article below to zoom up for reading. The article highlighted that if inflation is at 5%p.a., it will take just 10 years for the money to be reduced to $5,987 only. Huge sums of money in ordinary savings accounts will be affected most.
The gist of the article and towards financial independence is to ensure our value of monies will not reduce overtime...Imagine someone earning $3,000 monthly, and inflation is 5%p.a, meaning the actual pay is only $2,850 monthly. Calculate this, and you will find a loss in the money value of $150/mth, multipy that by 12 months...and the money loss is $1,800 yearly.! And this salary/money will keep on depreciating in value if there's no income increment and inflation keeps on maintaining the pace.
Singapore CPI was at 6.6% in Jan 2008, below is a new article for your reference.
Singapore's inflation hits 25-year high of 6.6%
By Margaret Perry, Channel NewsAsia | Posted: 25 February 2008 1328 hrs
By Margaret Perry, Channel NewsAsia | Posted: 25 February 2008 1328 hrs
All of us, from low to high income, need to protect our hard earned monies from corroding due to inflation , and price hikes (e.g. recent articles on rice being sold out and prices going up). Inflation is part and parcel of our life, it grows as our economy, Asia, China and India grows, we really need to ensure that we stay ahead of this race
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