Saving for Retirement
Consider Your Personal Inflation Rate
A major component in retirement planning is determining how much you will need in savings. How much you need depends on how much you will spend. How much you spend is affected by inflation rates, but your inflation rate may be different than the national average. A lot depends on what you tend to purchase. If you want to lower your personal inflation rate:
- Re-finance your mortgage instead of purchasing a new home.
- Buy a used car that gets great gas mileage.
- Eat more at home instead of at restaurants.
- Choose generic drugs when you fill prescriptions.
- Put off purchases for durable items like refrigerators, since prices on average have trended lower.
Inflation rates only impact you when you make a purchase; work hard to keep your personal inflation rate low and your retirement savings will go a lot farther.