Learn How to Build Wealth Volume 1–With Inflating Costs
As time goes on the cost of goods and services usually increase. The rate in which they increase is called the inflation rate. When planning to meet future financial goals it is important to take into consideration that the rate at which goods and services increase over time.
The Bank of Canada tries to keep the inflation rate around 2%. However, there are some goods and services that increase more than 2%. This is important in our planning, because as costs increase over time we will need to save more now to pay later.