Inflation
The gradual rise in prices that shrinks what each dollar buys. Cash sitting still is not standing still — it is losing purchasing power every year.
By Findley's Finance · Last reviewed: September 2026
Why it matters
Inflation is the quiet tax on doing nothing. At 3% a year, prices nearly double in 25 years, which is why stuffing retirement savings in a savings account is a slow-motion loss. Investing exists largely to outrun it: stocks and real estate have historically beaten inflation over long periods, while cash has not. Any return worth chasing is the return after inflation.
Concrete example
At 3% annual inflation, something costing $100 today costs about $181 in 20 years — and a dollar saved under the mattress buys roughly 55 cents' worth.