Beware of inflation!

So you have saved some money and think about storing it or invest it in order to have some benefits in the future, is not it? Great! Now, you are aware about inflation, is not it? Know that there are risks when it begins to "swallow" part of their profits, do not you?

Yeah, every now and then the topic of inflation gains spotlight, since it may be responsible for the destruction of part of what you saved. Yes, my friend, under certain circumstances, save or invest your money can be a bad idea, and even better to spend it than do it! Want to see one?

Suppose you want to buy a TV that now costs USD 700.00, and lucky for you, you already have such money! But then you think: "I can do without this TV set for a while longer, leave my money in savings, and when I buy it, will still be left me some money!" and then you apply it in savings. After a year or more, you can check your savings account and realize that it earned USD 10.00 - not much, but as you do not need TV that immediately meant a profit, is not it? But then, when you go to the electronics store to buy it, discovers that she is now costing USD 750.00! Even with the income from the booklet, you can not buy it! What happened?

Simple for inflation was higher than the return from that investment option, which makes it totally ineffective - in this case, would much rather have bought the TV when you had the money. The problem is that you can not predict exactly what will be the values ​​of the inflation rate and the return of certain investments. However, you can estimate how much might be, and thus with some margin of safety, make certain decisions - and that's you, dear reader, to do!

I'm not saying here that you should buy everything you see today, on impulse, on the contrary, as you may find out tomorrow that does not need half of what we bought. Nor am I asking to discredit the possibility of investing thinking of future earnings. I'm telling you that should take care of inflation, achieve its projections and, based on them determine what should be your next actions!