2021 Inflation rates!

Inflation, what is it and how does it affect me?

If you’re like me I am sure you have noticed the increase in just about everything. Homes, used vehicles, food, and everything else in between. For most Americans including myself the cost of everything has gone up, except my salary. Inflation is a general price-rise in the economy over a certain period of time. From 2020 to 2021 inflation in the United States has risen 5.3%.

With the rising cost of inflation my family has had to make a few drastic changes. We were determined to lower our debt to income ratio and kick it up a notch with our savings. Even with so many things happening in the economy we were still able to figure out what the best choices for our family were financially and were able to adjust accordingly.

At the beginning of this year my biggest personal financial goal was to save at least half of my income. Even though we still have three months left in this year I have already exceeded my goal. Another goal that I had was to increase my credit score. I cannot count how many times I’ve heard people say “Credit does not matter” I am here to tell you, it does. Not only is credit important but having access to cash while having good credit is just as important. According to the experts inflation will only go down about 2% over the course of the next two years.

In 1990 when I was born the average teacher salary in the United States was $33,000. In 2021 the average teacher salary in the United States is $63,000. in 1990 the average price of the home in the United States was $79,000. Can you guess what the average price of a home in the United States is in 2021? Around $269,000. Yes, you read that right. How can over the course of 31 years salary only increase $30,000 while the cost of an average home increased $189,000. Inflation affects everyone. Save what you can, invest what you can, and make smart money choices daily.

Families who spent the $79,000 in 1990 with 30 year mortgages For now finished paying for their homes and many are now selling those same homes for four times what they paid.