Lesson 02 — Inflation

The slow leak in your wallet.

— a tax nobody voted for

§ 01

What inflation actually is

is the rate at which the price of things — coffee, rent, a haircut — goes up. The number in your bank account stays the same, but it buys less. A €50 grocery run in 1995 costs about €100 today. The euros didn't shrink. The world around them got more expensive.

§ 02

See it for yourself

Drag the sliders. The flat line is the money in your account — unchanged. The curve below is what it actually buys. The widening gap between them is the cost of doing nothing.

§ 03

The real return trap

A savings account paying a 1% sounds positive — until you realize is running at 3%. Your real is negative two percent a year. You are getting poorer in slow motion. This is why patient investing isn't about getting rich. It's about not getting quietly poorer.

★ Worth memorizing

Doing nothing is not safe

€10,000 left in cash for 30 years at 3% is worth €4,120 in today's purchasing power. You didn't lose money on paper. You lost more than half of it in real life.