Sunday, January 13, 2013
Determining Annual Savings
Watching Asset Growth and Gauging Investment Returns
Knowing Inflation and Our Inflation
I know what the government reports to us as our national inflation rate, but that doesn’t mean that this rate correlates exactly with our personal inflation rate. Since I’ve been gauging expenses for some time now, I can get a better feel for what our own family’s true rate of inflation is upon the products that we pay for and the things that we utilize regularly.
Over time, this rate runs at about 3 percent, but more recently it has been higher compared to where the government is quoting inflation at around 2 to 2.5 percent in 2012 due to things like tax hikes and health insurance premium increases.
Knowing this rate helps provide us with a more exact picture of what our future expenses will be when it comes to our personal situation as opposed to just using a national average that may incorporate or leave out critical elements of our regular spending.