Almost always when I give an example of saving and investing, some commenters chime in with a message like “But a million dollars won’t be anything in 30 years!”

First, I’d like to acknowledge that no one knows anything about what will be true in 30 years. An asteroid could hit the planet tomorrow and I would have wasted a lot of effort typing this.

BUT, if history is any guide, we can certainly expect inflation to continue to be a nefarious force that will drain value from our hard earned dollars. So to that end, the commenters kind of have a point. A million bucks in the future will buy less than it buys now. Ok, so now what? If a million bucks will buy less, does that mean you won’t want to have a million bucks? I can promise you will.

And when you think about your other options, I don’t know of a better way to combat the impact of inflation outside of investing early and often. I don’t hold much cash. I don’t invest in gold. I own my primary home, but that’s for livin’ not for investin’. All my investing dollars are in either index funds in the stock market or investment real estate (note that investment real estate differs dramatically from your primary home, because it generates income).

So it’s good to be aware of inflation, but to combat it, don’t give up and say it’s hopeless, rather attack it with a plan to build wealth through appreciating and income generating assets!

As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.

-Jeremy