You might have noticed that I’ve recently talked quite a bit about inflation, and that’s because I know firsthand how big of an impact it can have on your lifestyle in retirement.
But, one thing I haven’t mentioned is that everybody has their own personal inflation rate.
Yep – you read that correctly.
Our national inflation rate may have been between 1.2-2.4% over the last few years. However, your inflation rate may be much higher.
So what can affect that number?
The simple answer is… whatever you spend your money on!
If you spend money on things that inflate higher than the average rate, your rate will obviously be higher.
If you want to keep yours as low as possible, watch out for the cost of:
- Major household appliances
- Used vehicles
On the flip side, the cost of clothing, electronics, and loans has been declining – the trick is to balance out your spending habits. That takes looking at the entire puzzle and putting all the pieces together to make your money last as long as possible without sacrificing your lifestyle.
Of course, that requires planning. If you’d like to discuss how you can lower your inflation rate as much as possible, book 15 minutes with me by calling 513-563-PLAN (7526) or using my online calendar.
Nikki Earley, CFP®