I love to talk about money.
I love it because I understand money is literally a necessity to our lives. We need money to pay our bills such as rent, hydro and entertainment. Furthermore, we need money to pay for our education. More importantly, we need money to pay for the kind of life we always dream of.
I think most people would agree with me. Whenever people talk about money, they would talk about where to invest their money, how to get a salary raise or where to get the best deal for their next vacation. But one thing people seems to ignore (or pretend they do not care) is…
According to Investopedia, inflation is the rate at which the general level of prices for goods and services is rising. Of course! Paying $1.50 for a cup of coffee does not look like a lot, but little things add up overtime and you would notice you are wasting a lot of money on stupid things in the long run. As a result, it is crucial that the return of investment on whatever investment you are in are higher than inflation so that your purchasing power does not change much overtime.
Today I happened to read an article on the Toronto Star on prices on good and services in Canada and saw this chart:
This chart shows the average retail prices of some of the essential goods in Canada in 2016 and 2017. With the exception of mushrooms and frozen french fried potatoes, EVERYTHING WENT UP IN PRICE IN 2017. The food with the greatest increase was instant coffee (10.64%) while the food with the lowest increase was carrots (1.69%).
If you also look at the data on January 2018, some food products’ prices increase already:
Pursuing this further, let’s look at regular unleaded gasoline prices per litre in Toronto from 2015 to 2017:
Although there were monthly fluctuations, price of gas still increase on a yearly basis. From 2015 to 2016, gas price increased by 4.28%. Furthermore, gas price increased by 15.57% from 2016 to 2017. As the average gas price in Toronto already hit $124.5 per litre on January 2018, we could expect gas price would not decrease anytime soon.
I know some of you guys do not like to talk about money either because you do not care or there are other reasons you do not wish to share, but remember this:
While money cannot solve every problem, our lives would be screwed if we are broke.
Do you feel you spend more money on groceries and drinks than before? What is your average monthly bill on food and gas? Please leave your comment below! Catch you on the flip side!