Summary:
In the 14th episode of the Confident Wealth Podcast, Bill Bush and Pete Bush talk about what inflation is, what its effects are on the economy, and how inflation impacts the overall spending power of consumers.
Time Stamped Show Notes:
- 01:14 – When bubble gum went from $0.01 to $0.02 taught Bill about the effect of inflation as a kid.
- 02:04 – In 1985 a first-class postage stamp cost $0.22, by 2014 it is $0.49, and could be $0.76 in 2025.
- 03:06 – Everything gets more expensive annually
- 04:01 – At an inflation rate of 3%, in 25 years $100,000 will be worth the equivalentbof $47,000.
- 07:01 – Inflation effects are daily lives, on our savings, on bonds, on the overall economy, on unemployment, and energy prices
- 10:24 – Inflation rising is good on savers abut bad on borrowers.
- 11:43 – Things to pay attention to in a rising inflation environment: owning bonds,
- 13:02 – Stand by your financial plan if your goals are the same.
3 Key Points:
- Inflation is the rising cost of goods and services.
- $100,000 will be worth the equivalent of $47,000 in 25 years.
- All money is, is what it can buy.
Tweetable Quotes:
- “Inflation, it’s an invisible tax I like to call it.” – Pete Bush
- “What is inflation…of course it is the rising cost of goods and services.” – Bill Bush
- “Everything you purchase gets more expensive every year.” – Pete Bush
Resources Mentioned:
