Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power.
To excel in achieving financial freedom, it is crucial to understand inflation, as it affects the value of money over time. Inflation reduces the purchasing power of your money, meaning that as prices increase, you can buy less with the same amount of money. This highlights the importance of investing; by investing wisely, you can grow your wealth at a rate that outpaces inflation. It's essential to factor in inflation when making financial decisions, especially long-term savings and retirement planning.
Inflation is taxation without legislation.
