Inflation is hurting your savings now more than at any time in living memory. The major factors that affect your savings are food, housing and energy. Currently inflation in housing and energy are high – and these costs are affecting you every day. Wage growth is also at all-time lows which means your take home pay is also not keeping up with cost of living increases.

The cost of living is increasing faster than your savings are growing. This means you’re losing out on the value of your hard-earned money. Inflation is a silent, unseen force that affects everyone, whether you are aware of it or not.

If you were to talk to someone about inflation, they’d probably ask what exactly it is. That’s because it’s not something that you can physically see or touch, but you feel the effects every day. It’s the rising cost of living that makes your paychecks go further and further each year—or maybe not at all!

Inflation is often confused with rising prices. Both things might be happening at once, but they’re different forces. Inflation is an increase in general prices due to an increase in aggregate demand for goods and services throughout an economy. When this happens, everything goes up in price—not just specific products or industries.

Inflation can be caused by a number of factors like:

Central bank monetary policy – when central banks like the Federal Reserve increase interest rates or print money to buy bonds, those actions tend to raise prices. The federal reserve pumped more than $8 trillion into the system, which flowed into the economy and assets such as real estate, stock market, and etc.

Supply and demand – when supply falls short of demand for goods and services, price increases often follow. With Covid-19 there has been a huge supply constraint, which pushed a lot of commodity prices higher and caused many goods around the world to be more expensive.

Inflationary expectations – If people begin to expect higher prices, then this will have a psychological effect where businesses and people will start to push prices as the expectation is for higher prices.

Employment Shortages – Due to employment shortages during Covid-19, this causes many companies to increase their wages to attract talent. By pushing wages, this creates sticky inflation, which will push inflation higher overall.

Inflation is like a silent thief; it sneaks into your life when you’re not looking and steals away your purchasing power. If you want to see the real impact of inflation on your money, take a look at the increase in food prices since 1957: Bread: +814% Coffee: +892% Milk: +795% Meat: +679% Vegetables: +626% Fruits: +309%

If you want to protect yourself from inflation, then investing in the stock market is a great way to do so. The stock market has historically kept pace with inflation over the long term. If you invest in the stock market for the next 10 years or more, then your money should grow at least enough to keep up with inflation, if not more than enough.

The stock market has been a great place to invest money over the years. For example, if you invested $10,000 in the stock market in 1975, it would be worth around $200,000 today. That is a 200X return on your investment.

Ultimately, inflation is not only something you can’t control, it’s something you can’t do anything about. And if you really want to protect your savings there are steps you can take to keep them safe. While this is a long-term fix that won’t put any money in your pocket next week we suggest taking a look at how your spending habits compare against the wage increases in your respective countries – and then readjusting those behaviors. In addition, the only way to fight inflation is to invest in the markets that beat inflation year over year.