+21 The money you already have doesn't adjust for inflation, amirite?

by Anonymous 2 weeks ago

This is why financially literate people will tell you to never just leave your money to sit in a basic savings account. Inflation will outpace your interest earned. You gotta make your money work for you.

by FlashyVegetable6552 2 weeks ago

Jokes on them. I don't have any money.

by Anonymous 2 weeks ago

That's why you have to leverage and invest in a low yield savings account.

by Anonymous 2 weeks ago

Take out loan, put money in a savings account that has more interest than the loan (somehow if youre lucky).

by Anonymous 2 weeks ago

If you're really lucky, you can try to be born into a rich family.

by Anonymous 2 weeks ago

If you're financially literate you'll choose to be born into a rich family.

by Anonymous 2 weeks ago

Yeah... those generally don't exist, otherwise that would be an infinite money glitch.

by Anonymous 2 weeks ago

They do exists* *Taking an incredible amount of risk while having to pay your loan or they're gonna take your house, your car and shoot your dog

by Anonymous 2 weeks ago

You're good. "Making your money work for you" is one of the most contempt, hateful phrases of our time aimed at thankless despite and this guy knows that.

by Anonymous 2 weeks ago

Unfortunately my money went on strike

by Marilou89 2 weeks ago

It had every reason to. You think your money fighting for what's best for it is your misfortune.

by Anonymous 2 weeks ago

Exactly. Like bro, your money can only "work for you" if you are starting with a significant enough amount for it to do so. If you mean, invest in a high-risk high-reward asset like crypto/stocks, then that phrase is as valuable as saying "Put all your money into scratch tickets".

by Anonymous 2 weeks ago

The fact that people who complain about people not working also try their best to make money without putting any labour into it is laughable. Nobody wants to work when they don't feel like it, and everyone thinks they would enjoy life better if they had a cushion to sit on. But not everyone is ready to play that game. I respect that. Life is NOT about money, and nobody CHOSE to live in a society with that unavoidable degree of monetization. Even all our financially literate bros here. They work cause they have to, they place their stash cause they don't really wanna work, or at least, not all the time. Kudos to them, and kudos to those who have other priorities too.

by Anonymous 2 weeks ago

There are things that exist in-between. I keep my emergency funds in Ally Bank. Currently get 4.2 percent interest. FDIC insured. You are limited to the number of transactions per month (I think it is around 3 or 4). If I need money I transfer it to my main checking account and you can get it in a couple of days for free. Costs a bit if you need it sooner. Probably not keeping up with inflation but certainly better than keeping it in a traditional bank savings account. Transfer is no more difficult than something like Venmo. Just do it in the app. Still quite liquid and at least cut down on inflation some.

by metzflorence 2 weeks ago

Everybody thinks they're a genius when the market is going up.

by Jonescleora 2 weeks ago

When you turn 15k into 80k - it has to come from somewhere. So someone else needs to lose as much.

by jnolan 2 weeks ago

Bro, the stock market returns 10% annually on average, sticking $100 in an index fund and leaving it alone for 30 years until you retire will leave you with about $1,750.

by Anonymous 2 weeks ago

And it's an attitude like this that will always keep you broke

by mollylindgren 2 weeks ago

My inability to prioritize money over anything else in life is what's going to keep me broke.

by Long-Sleep 2 weeks ago

The only thing you have was allowanced to you by someone who feels that exact same way about you.

by Anonymous 2 weeks ago

What do you do for a living?

by Afton20 2 weeks ago

Do? For a living?

by Ayana78 2 weeks ago

The person I replied to was being an asshole so I was just chattin a little bit. No need to get defensive for him.

by Afton20 2 weeks ago

What? It's as simple as buying one index fund every month for as long as you work and you'll have five times as much money as you put in after 35 years. That sounds insane but it's just compound interest. 500 per month for 35 years and you'll be a millionaire even after adjusting for inflation.

by Most_Classic3687 2 weeks ago

Yes, yes it is that simple. You ever think about that? How it is so simple? How come? Is everything in life so simple do you think? It's up to you to raise yourself these questions. Maybe there's something important in the answer... Something that needs urgent attention... Then again, you don't have to. After all, it is very simple.

by Anonymous 2 weeks ago

Lmao this is nonsensical af. You have a point to make?

by Anonymous 2 weeks ago

We're in a weird time now that the fed has raised interest rates. For the first time in a long time, savings interest rates are decent, like 4.5% and sometimes 5%. Sure you can get like 7% or 10% in index funds, but at a much higher risk than a guaranteed return from a savings account. But yeah, only keep the bare minimum in 0% accounts.

by Anonymous 2 weeks ago

Uhh a savings account interst is less than 1%. The fed raises interest in borrowing and lending. Aint no bank giving you 5% interest on a savings account

by Anonymous 2 weeks ago

You should definitely look into getting a high yield savings account. Can usually find something between 4-5% (I'm in the US)

by Anonymous 2 weeks ago

Ally, Marcus and Capital One 360 all pay over 4% right now.

by Anonymous 2 weeks ago

Depends on the country. Here they are around 5% or just shy.

by InternetFalse1662 2 weeks ago

The FED is a US thing so, no it does not depend on the country. This was specific to the US

by Anonymous 2 weeks ago

I didn't see they mentioned fed. My bad.

by InternetFalse1662 2 weeks ago

My plain old PNC savings account jumped from like 0.1% up to 5%. No action from me. Just a good ol' savings account increasing its interest rate.

by Anonymous 2 weeks ago

Mine gives 5.25%

by virginie60 2 weeks ago

Standard savings? What bank?

by Anonymous 2 weeks ago

Sofi

by CommonAd3013 2 weeks ago

Standard savings? No. You either need to have direct deposit or make large deposits. This is not what i am talking about. These accounts are not regular savings accounts and most people dont have the ability to qualify for this rate. .5% just like everywhere else if you dont have a couple extra grand to deposit

by Anonymous 2 weeks ago

No. Wealthfront is 5% as well.

by Anonymous 2 weeks ago

Anyone with direct deposit from a job has access to this lol

by CommonAd3013 2 weeks ago

Quit digging in your heels and go see for yourself. Literally every major HYSA is >4% with no direct deposit or minimum balance. Ally, Apple, Capital One, Wealthfront, Sofi, the list goes on.

by Anonymous 2 weeks ago

Yeah I don't have time for that when I also have to work

by Nannie75 2 weeks ago

While those are easy to set up, it requires money to invest. With about 80% of the nation living paycheck to paycheck, they may not have the means to actually invest without possibly putting other things at risk in the immediate.

by NoPineapple4530 2 weeks ago

True, but learning to invest even $10 a week can change your life if you do it consistently. You won't miss that small amount, but it starts a lifestyle, which is the real key.

by Akihn 2 weeks ago

10 a week is hard to come by when you are already in debt from: School, medicine, rent, car repairs, children, etc. The middle class is shrinking by the day last I checked, and I don't imagine it's getting any better. And let's not forget the whole Gamestonks thing, where when normal ppl started getting the upper hand, the rich just outright took their ball and went home. I bet dollars to donuts if enough people started doing this, the rich would just change the game again. Political activism is the real key. Everything else is playing Calvinball (or revolution, but most ppl would prefer to give up liberty than life)

by Anonymous 2 weeks ago

It really isn't. I make less than 30k a year and so does my wife. I have all those expenses and still find a way to tuck money away every week.

by Anonymous 2 weeks ago

Yes two incomes are nice, but we also have twins so they cancel each other out. Point still stands, it is possible to squirrel away a little money each week it might not be much but soon you can have a little emergency fund built up which will help prevent going into even more debt.

by Anonymous 2 weeks ago

Well if you don't have a savings account then you don't need to worry about the money in your non existent savings account growing with inflation. The problem this solves only exists if you have savings already. Like the value lost to inflation of the course of a week on the amount of money the typical person makes in a week is inconsequential, if you're living paycheck to paycheck you need to be more focused on insuring your pay tracks with inflation as a minimum with growing your income faster than inflation being the bigger goal so that you can get to the point where you are worried about money sitting around losing value.

by landenyost 2 weeks ago

Well this advice specifically says that IF you have money saved up, it's worse to have it just sit in your bank. It's not for those who live paycheck to paycheck.

by Anonymous 2 weeks ago

No it doesn't require "money" to invest. You could literally consistently buy one less latte a week and invest that money, and you would be surprised at what you would end up with in 10yrs time.

by Hahnadrianna 2 weeks ago

I don't buy any lattes. Even if I did, they're like 3 bucks. Not sure how $12 a month is gonna get me anywhere.

by Anonymous 2 weeks ago

13 bucks. Or 156 bucks every year, but growing exponentially.

by Zealousideal_Two9593 2 weeks ago

5-10% is exponential growth now?

by Anonymous 2 weeks ago

You hit the nail on the head. It's an education problem.

by Hahnadrianna 2 weeks ago

80% of the people in this country are not loving paycheck to paycheck in the way that you mean. Not even close.

by CookieEducational404 2 weeks ago

Most people have the means, they just don't know how to prioritize "I need a haircut" against "If I skip a haircut and invest this money now, it will grow to cover a whole-ass month of rent when I'm retirement age."

by Anonymous 2 weeks ago

Can you specify a risk level to this please?

by Zealousideal_Two9593 2 weeks ago

To give an idea of historical returns, over all 10 year periods since 1928, the S&P 500 has returned between 3.4% and 11% per year (adjusted for inflation) in half of scenarios. A quarter of them returned less than 3.4% and another quarter returned over 11%. Over 20 years, the middle half of scenarios returned between 4.1% and 9.2%. After 30 years, it's between 6.0% and 8.0% Make of that what you will as it relates to risk.

by Anonymous 2 weeks ago

...aaaaAAAAND It's gone. 🤷‍♂️

by LeaveDecent 2 weeks ago

South Park and its consequences have been a disaster for the financially illiterate

by Anonymous 2 weeks ago

You have no idea what you're talking about lmao sit down

by Top-Rip-5124 2 weeks ago

It's a joke from south park

by Anonymous 2 weeks ago

Too many people have that sentiment unironically. It is bad, and the advice the other guy is giving is good.

by Top-Rip-5124 2 weeks ago

Scared money don't make money.

by Anonymous 2 weeks ago

I don't think you understand how stable and low-risk long term investing is

by Anonymous 2 weeks ago

What are you talking about?

by Anonymous 2 weeks ago

Time for what? Pressing a couple buttons on a website?

by AccurateLoad 2 weeks ago

You don't have time not to.

by Bcasper 2 weeks ago

You say that as if it's anyone's loss but yours.

by Past-Lynx 2 weeks ago

You don't have time to passively invest your money?

by deewisozk 2 weeks ago

You don't have to put in any time to make it work, just open a high yield savings account which is always higher than interest rates.

by Anonymous 2 weeks ago

401k?

by Anonymous 2 weeks ago

Not every country has that

by Anonymous 2 weeks ago

That's why I put a question mark you didn't specify which country you are from.

by Anonymous 2 weeks ago

Makes sense. To answer your question, I have 401 thousand of some things yes

by Anonymous 2 weeks ago

Not always, my savings account is higher than inflation

by Cassandreglover 2 weeks ago

Thats why this isn't original.

by Particular-Bag5695 1 week ago

It took me way too long but I finally moved all my savings to a money market account, I net about $30/month in interest

by Striking-Scholar2725 1 week ago

HYSAs usually match the federal rate of inflation. Only problem is you still need to pay taxes. The biggest problem with inflation is how businesses judge growth by how much more money they can earn. This is flawed because how much money they earn is literally splitting hairs.

by Amiralindgren 1 week ago

Unless you need to be able to access said money right now at any given moment. If you're saving for a house for instance, it's very hard to get money OUT of whatever you tie it up in in order to make the down payment.

by Anonymous 1 week ago

What does that mean?

by ahmedthiel 1 week ago

One of the key reasons for inflation is to drive people to invest. Banks make huge profits off your investment accounts. Most people lack the knowledge to invest on their own, and financial institutions know it. They then take that money and invest in things that go up in value because of inflation, like houses. Inflation is a scam, always has been.

by Anonymous 1 week ago

Isn't that literally just the whole concept of inflation? Am I missing something?

by Anonymous 1 week ago

I think they are refering to your savings account does not have an interest rate adjusted to inflation rate, or something, that's all I can see into it, other than this it's just a fact

by Anonymous 1 week ago

It's called interest 😂 most HYSA do in fact have rates that are higher than the inflation rate.

by Anonymous 1 week ago

Hysa's had like a 1-2% rate for the preceding decade when inflation was way higher Historical Savings Account Interest Rates Between 2009 and 2021 In the years following the Great Recession, saving rates continued to fall to historic lows. In 2009, savings rates averaged 0.21% APY but fell to 0.17% in 2010 and 0.11% in 2011. Interest declined year over year until 2013, then remained steady at 0.06% APY through 2017. From 2018 and 2021, national average savings rates fluctuated between 0.01% to 0.10%, making savings a guaranteed financial loss. Even with the 2010s' relatively low inflation rates of 1% to 2%, money held in savings was a depreciating asset. In 2021, inflation jumped to 4.7%, while savings account interest rates hovered between 0.06% and 0.07%. Because the Federal Reserve kept interest rates low to stimulate growth, savings rates remained at historical lows for over a decade. So you're describing a very recent phenomenon 😂

by Anonymous 1 week ago

Inflation rates were about 1-2% on average during the 2010s…that's not "way higher"…it's keeping pace, and higher than inflation most years.

by Anonymous 1 week ago

Unless you were living in Venezuela or something, inflation in 2010 to 2020 was very low, sometimes negative.

by Anonymous 1 week ago

Those rates listed are all standard savings rates. No HYSA account hovered between 0.06%-0.07% in 2021. But thanks for reiterating my point about historic low inflation rates during the 2010s…

by Anonymous 1 week ago

Currently. I would not expect them to stay that way forever.

by lavonnecarter 1 week ago

That's objectively not true. It is true occasionally, but certainly isn't something you could rely on.

by Anonymous 1 week ago

HYSA have 4-5% right now, and the inflation rate is much, much higher than the government claims it is.

by Anonymous 1 week ago

I think people generally associate inflation with prices going up, which is different, but maybe the same.

by Anonymous 1 week ago

i mean...thats literally what inflation is....its how your money loses value

by Anonymous 1 week ago

Inflation is loss of purchasing power. It does not require that the cause be an increase in supply.

by Anonymous 1 week ago

yeah inflation is a sustained increase in the price of goods and services which can also be said as lost purchasing power

by Anonymous 1 week ago

Ain't no way!!

by Anonymous 1 week ago

Thankfully, I never have any money left over after I pay my bills so this doesn't affect me. If you really want to avoid this happening, just be broke all the time.

by Anonymous 1 week ago

Yes. Put your cash into investments. Cash, like milk, doesn't age well. Assets, like investments, grow with time. Cash stands still.

by Impressive_Tie_4003 1 week ago

I tried to invest once. It didn't end well lol

by Anonymous 1 week ago

Lol, that's literally what investing is. Attempting to keep your current money aligned with inflation. Or if you're skilled at it, make gains.

by Anonymous 1 week ago

Or if you're skilled at it, make gains. No skill involved in buying a passive index ETF. And much less skill involved in active Investors than active Investors believe they have.

by Anonymous 1 week ago

sure it does. Downwise.

by Anonymous 1 week ago

Maybe yours doesn't Speak for yourself lmao

by Anonymous 1 week ago

Yes, that's what inflation is.

by Anonymous 1 week ago

Well, if that's true, people with money would be putting it all into assets that grow with inflation, like housing. That way, when fast food workers pay goes from $12 to $20 with inflation, their rent can be raised from $1200/mo to $2000/mo Oh, wait…

by ImpressiveOrdinary74 1 week ago

Jokes on you, I keep all my money as a hoard of precious metals and gemstones under my bed

by Anonymous 1 week ago

I have barrels of crude oil in my garage.

by zhamill 1 week ago

you're just now realizing this?

by Content-Heat 1 week ago

You dont know how old they are.

by Particular-Bag5695 1 week ago

Put it into a vessel to accrue value. If you choose not to do this, then that is on you.

by Substantial-Gur 1 week ago

OP just found out what investing is

by Anonymous 1 week ago

Only if you keep it in cash or a Big Bank savings account that pays 0.1% interest.

by Anonymous 1 week ago

Wait until you realize that if you don't get a pay raise each year that is more than inflation then you're taking a pay cut each year. And then realize unless you're getting a pay raise of more than about 4%… it's not an actual raise

by Cortneyparisian 1 week ago

I see you have a keen eye for the obvious

by Ednapouros 1 week ago

it's called inflationary taxes

by Anonymous 1 week ago

Unless you invest it.

by Anonymous 1 week ago

So you just learned what inflation is. Congrats.

by Kosselyse 1 week ago

That's not at all what interest is.

by Anonymous 1 week ago

In some way, as it's losing some trade money. For 1$, you can't buy as much as you could a few year ago

by Anonymous 1 week ago

That's why you should avoid leaving it in cash if possible.

by Anonymous 1 week ago

Only if you're dumb with it.

by Anonymous 1 week ago

Get those Benjamins in an interest bearing account.

by britneymcglynn 1 week ago

thats why I buy I Bonds.

by Anonymous 1 week ago

For many people, not even the money they will get adjusts for inflation.

by Anonymous 1 week ago

It does, though. Nobody stuffs currency under the mattress or burries it in a treasure chest. . It's all out there earning... unless you're a dumbass... which just might (and seems to) nr the case here ... Are you 12 with a full piggy bank, Scooter ?

by Anonymous 1 week ago

Invest invest invest. At least put it in a high yield savings account

by Anonymous 1 week ago

It does if you invest it.

by Anonymous 1 week ago

Dude just discovered what investing is

by Clear-Profession-903 1 week ago

Every single person with middle range financial knowledge here just living their best life like black swans aren't a thing and unironically rubbin' it into slightly poorer people's faces.

by Anonymous 1 week ago

Which is why while inflation is bad, deflation is worse. Why would you buy stuff if your money is worth more tomorrow?

by Anonymous 1 week ago

This is the entire reason inflation is bad

by Anonymous 1 week ago

You realize inflation doesn't mean a dollar gets more valuable right?

by No_Secret9405 1 week ago

This is what the economist Henry Hazlitt called the "assault on saving."

by FitSundae7078 1 week ago

I have saved most of my money and I am more rich than everyone else who said to invest. If you know how to save you are going to be rich.

by Fuzzy-Highlight 1 week ago

Just now realizing how the economy works I see

by Anonymous 1 week ago

But you can hedge for inflation by investing your money, and by switching your fiat to Bitcoin.

by annabelle05 1 week ago

Yes... that's kinda the point The powers that be want it that way, because it encourages you - the average joe - to put money into investments

by Altenwertharden 1 week ago

My CDs paying 5% disagree

by dkihn 1 week ago

I don't have enough money for this to matter to me.

by Anonymous 1 week ago

What about the debt you already have

by Anonymous 1 week ago

Maybe investments help, but I know my spending habits adjust with inflation.

by Anonymous 1 week ago

You have to invest your money, because interest rates on a CD will not keep up with inflation. You are actually taking more risk by NOT investing your money, because you lose purchasing power.

by Marcelo55 1 week ago

Deflation would be criticized just as well. Housing market crash, bad. Housing price rise, bad. People love to complain.

by Anonymous 1 week ago

That's why you should responsibly invest it but whenever you say that everyone's minds always go to the worst possible extremes and it's not worth the hassle because they want you to handhold them through it and then hold you responsible for anything that happens.

by Alone_Hunter 1 week ago

It wouldn't adjust for DEflation either. One more reason we need deflation

by Anonymous 1 week ago

Never keep cash - put it in real estate

by Davisoliver 1 week ago

That why they say to put it into the investments they pitch to you

by Hesterwaters 1 week ago