A Reddit user reveals concern over declining buying power, citing salary raises that fail to match inflation rates. Commentary supports the user's worry, indicating that without sufficient income increases, he's effectively facing a pay cut. With inflation at 2.9% in 2024 and a salary raise of only 1%, the Redditor struggles to cover expenses, save adequately, and risks falling into debt. Suggestions for him include raising income or reducing spending to counter the financial strain.
Losing buying power makes it harder for you to make ends meet. You won't have as much money left over after your discretionary spending is done, so you may not have as much to save.
When your salary increase is lower than the rate of inflation, you effectively lose buying power. If costs rise by 2.9% and your salary goes up by 1%, you can't buy as much.
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