The inflation illusion is something that our mind is not to accept easily. Inflation is the biggest factor that acts like a silent destroyer of our wealth. We hardly visualize it mainly because it’s a slow poison to our wealth.
Inflation ILLUSION!!
Let me explain the same with few simple examples like how our mind is not ready to accept. Here, I am taking two scenarios. One is of the past and another is of the future.
# Past
Let us assume that currently, your age is around 40 years. When I say 20 years back, our household expenses used to be around Rs.20,000, then you accept it. Because you might also go through the same budgetary household spending.
If we include 8% of inflation to this Rs.20,000, then in today’s value it is around Rs.86,000. To lead the comfortable with the basics, one may need this much in the current scenario. As we were aware of Rs.20,000 expenses 20 years back and as our current expenses are also true of around Rs.86,000 to Rs.1…