Real Purchasing Power Tracker
"See how inflation changes the real value of your money year after year."
Inflation quietly reduces the buying power of your income and savings. Even if your salary or investment balance grows, higher prices can mean you're actually losing ground in real terms. Use this tracker to visualize how your money's purchasing power changes over time, whether you're planning for retirement, budgeting for the future, or evaluating salary growth against inflation.
Income, savings, or portfolio value
Salary raise or investment return
Expected inflation over time
Time period to analyze
What Is Purchasing Power?
Purchasing power measures how much goods or services your money can buy. Inflation reduces purchasing power, meaning the same $100 buys less over time.
Why It Matters
Tracking real value helps you plan smarter. Whether it's wages, savings, or investments, knowing your inflation-adjusted worth is key to building financial security.
Example Scenario
If your salary grows 3% annually but inflation averages 4%, your real income actually falls 1% per year, losing 10% of purchasing power over a decade.
Ways to Protect Your Purchasing Power
- • Invest in inflation-indexed securities
- • Rebalance toward real assets (real estate, commodities)
- • Increase income faster than inflation
- • Diversify across global markets
Historical Context
US inflation has averaged 2-4% annually over the long term, with periods of high inflation in the 1970s-80s.
Rule of Thumb
Aim for returns at least 2-3% above inflation to build meaningful wealth over time.
Power of Tracking
Regular monitoring helps you adjust your strategy before inflation significantly impacts your goals.