Money Burning Inflation Concept
Fig 1.0: The Invisible Tax

The Inflation Decay Engine

Executive Summary
  • The Problem: Cash sitting in a savings account loses ~3-4% of its value annually.
  • The Reality: $100,000 today will only buy $50,000 worth of goods in 20 years.
  • The Solution: You must calculate your "Real Rate of Return" to survive.

Inflation is the silent killer of wealth. It is a tax that no one voted for, but everyone pays. If your money is not earning at least 3%, you are technically losing money every single day.

Use the engine below to simulate the Decay Rate of your savings over time.

SIMULATE WEALTH DECAY
*Historical average is ~3%. Recent rates vary.
Future Purchasing Power:
$0.00

The "Rule of 72" in Reverse

You may know the Rule of 72 for doubling your money. But it works in reverse for halving your money. At 3.5% inflation, your money loses half its value in 20 years.

This is why "saving your way to wealth" is mathematically impossible. You must become an investor. Assets (Real Estate, Stocks, Bitcoin) tend to rise with inflation. Cash dies.

"Inflation is when you pay fifteen dollars for the ten-dollar haircut you used to get for five dollars when you had hair." — Sam Ewing

Economic FAQ

What is Purchasing Power?

It is the amount of goods or services that one unit of money can buy. Inflation decreases purchasing power.

How do I beat inflation?

You need assets that yield >4%. Check your "Freedom Number" to see how much you need invested to outrun this decay.

Need to offset this loss by earning more?

>> USE THE COMPOUND VELOCITY ACCELERATOR