The nominal rate we earn is printed in the bank’s
The Intelligent Investor
ads and posted in its window, where a high number makes us feel
good. But inflation eats away at that high number in secret. Instead of
taking out ads, inflation just takes away our wealth. That’s why inflation
is so easy to overlook—and why it’s so important to measure your
investing success not just by what you make, but by how much you
keep after inflation.
Having money is great, but what if the dollar you have today is worth 50 cents tomorrow. You didnt do a thing but the prices of everything went up. That right there is inflation. And the scary part of it is that your salary most of the times does not increase to catch up with inflation. Instead you’re left to fend for yourself. Most of us arent ready to fend for ourselves financially just yet. Thats why investing is a secret method to help you prevent the worst case scenario.
