Inflation erodes the value of money over time from "summary" of PSYCHOLOGY OF MONEY. by MORGAN. HOUSEL
Inflation is the silent killer of wealth. It's the reason why a dollar saved 50 years ago is worth a fraction of a dollar today. The relentless march of inflation gradually eats away at the value of money over time. What cost a dollar yesterday may cost two dollars tomorrow, making it harder to save and invest for the future. Even though inflation may seem like a small, inconsequential force, its impact can be significant over the long term. A 3% annual inflation rate may not sound like much, but over 30 years, it can cut the purchasing power of your money in half. This means that the money you've worked hard to save and accumulate will buy you less and less as time goes on. One of the challenges of inflation is that it's often imperceptible in the short term. Prices may rise gradually, so you may not notice the erosion of your purchasing power until it's too late. By the time y...
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