Accumulating wealth is a long-term process that requires a combination of smart financial planning, disciplined savings, and investments. The first million is often considered the hardest to accumulate due to a number of reasons, including inflation, lifestyle creep, and lack of investment experience.
Understanding Inflation
Inflation is the rate at which the general level of prices for goods and services is rising, resulting in a decrease in the purchasing power of money. Inflation erodes the value of your savings, making it harder to reach your financial goals. To counteract the effects of inflation, you need to have a diversified investment portfolio that can generate a return that exceeds the inflation rate.
