Monday, September 2, 2013

Learn to consider inflation

Please use this calculator to better understand how you are getting poorer every day.
http://www.bankofcanada.ca/rates/related/inflation-calculator/
One of my friend is working since 13 years at the same place but now with much more responsibilities. She was happy with her salary until she realised that she didn't get any salary increase since 13 years once you've considered inflation.
Inflation is based on consumer prices so if you include house increase, taxes increase and all the other increase, the inflation number you will is are lower bound number which means your are even more poorer. Don't become pessimist, just be realist.

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