Salary is not making people poor.... Inflation is

[Antonixx]

A lot of people are working harder every single year, earning more on paper yet somehow life still feels more expensive and heavier for them, The problem isn’t always low salary.... sometimes it’s inflation quietly stealing the real value of that income. Imagine you get a 20% salary increase, but food, rent, transport, and basic living jump by 40%… so are you really progressing? The numbers look bigger, yes, but the purchasing power keeps shrinking, that’s why the informed people are now looking beyond normal savings and considering Bitcoin, not because they want to gamble, but because holding weak currency can feel like guaranteed loss. For people thinking long term, DCA into Bitcoin with spare income starts looking less like speculatin and more like protecting future value.

In my opinion the biggest financial trap is believing salary growth alone creates wealth… while inflation is quietly eating everything behind the scenes. We have a lot of unseen battles folks

[BIT-BENDER]

https://bitcointalk.org/index.php?topic=5576804.msg66487811#msg66487811
https://bitcointalk.org/index.php?topic=5579339.msg66580197#msg66580197
https://bitcointalk.org/index.php?topic=5582729.0
https://bitcointalk.org/index.php?topic=5567824.msg66149059#msg66149059

Just like I have done it is easy to fetch inflation linked post, inflation is discussed already on the economic board in a Mega manner and except you are bringing in a fresh perspective of inflation maybe news about a country experiencing inflation, making policies against Inflation, making bad policies that caused or could cause inflation, the effects of inflation in a direct country or something concrete not just teaching the topic inflation or lecturing on the concept of inflation.

[Coyster]

Human Resource do consider inflation when recommending salary adjustments, but in countries were inflation level rises very high, employers can hardly make any suitable adjustments. It is what it is, and the companies themselves are also affected by the same inflation, so it is more a reflection of the economic situation more than anything else.

In my opinion the biggest financial trap is believing salary growth alone creates wealth…

People who create wealth are usually very innovative entrepreneurs and they create and build things that people around the world make use of. That said, to become rich, you'd have to buy appreciating assets that can generate passive income for you through compound interest.

[Dreadboost]

Neither salary nor inflation is making people poor, but people are making themselves poor. The people making other people are those who contribute to the high rise of inflation. Inflation in a country is a normal thing because, as the world continues to progress, population increases, and there is scarcity of some natural resources, but when inflation starts increasing rapidly, it is no longer a result of the scarcity of resources but as a result of human greed and lack of contentment. Those with the power to influence the rise of goods and services do so without good reason. Their aim is to make a quick profit and a massive gain.

[Findingnemo]

Wealth generation requires huge income stream that is not possible with a salary, even if inflation is not a part, someone will not become rich in their lifetime unless they add multiple revenue streams. On the other hand the inflation keeps the people in a trap they are just surviving so even saving anything after paying bills is not possible unless they give up on something else.

[Finestream]

Even if we want to get rid of inflation, I think that will never happen because inflation will probably stay longer, let's just think it this way that its part of the challenges in life and we have no other solution but to face it smart-wise.

Personally, I think what's making us poor is not our low income nor high inflation, but its the behavior and attitudes we have, and how we approach this kind of life's challenges. In addition, what's making us poor is our poor mindset, if we can adopt the rich people mindset, I guess we will no longer suffer from being poor in life.

[Stepstowealth]

In my opinion the biggest financial trap is believing salary growth alone creates wealth… while inflation is quietly eating everything behind the scenes. We have a lot of unseen battles folks

Because salary from a job is fixed, It may be hard to cope with just a salary in an economy where the prices of things are constantly changing. To really handle and cope with inflation you have to either have multiple sources of income such that your income always surpasses whatever price adjustments that the market makes or you have to position yourself in a manner where your singular income is one that can be adjustable easily depending on the prices of things outside that is for example a position like someone who owns a wholesale store for household commodities, they can easily be able to adjust the prices of their goods to ensure that they keep their profits stable.

[tabas]

In my opinion the biggest financial trap is believing salary growth alone creates wealth… while inflation is quietly eating everything behind the scenes. We have a lot of unseen battles folks

That's the battle of everyone who's working hard and we know that due to the inflation, the value of our salaries are shrinking from time to time and there's no other way to combat it either by more salary increase which can only happen in a timely manner. Or by the best way is to have more source of income and that will increase the actual salary household that we earn. It's a hard thing to do especially when you're a family man and no one is there for you at those hard times. But we gotta man up and do the things we have to or else the inflation will continue to shrink our purchasing power.

[Davidvictorson]

In my opinion the biggest financial trap is believing salary growth alone creates wealth… while inflation is quietly eating everything behind the scenes. We have a lot of unseen battles folks

I want to come at this from a slightly different angle and that is social capital. Aside your income, your social capital will also determine how much wealth you create. in my estimation we will always have inflation. Things will never go down rather they will continue to go up. I can argue that it is your social capital that will sustain you more than your income. Who are your group of friends, what do the economic gatekeepers know that you don't? You cannot read these things on social media, in a textbook or learn it in college but through your network. Once you find it, you become "inflation-proof".

[uneng]

To be aware about this fact is only the first step towards solution. It's necessary to draw strategies to overcome inflation while receiving a wage which isn't enough to thrive.

It's a shitty world we live nowadays, where quality of goods are decreasing, while prices are increasing. And I fear there isn't how to overcome this on short run.

You need to develop long term financial goals and stick to them. To sacrifice the present thinking on the future is the way, I guess... Decrease living costs at its maximum, save as much as possible and make sure to put this money in investments which pay above the REAL inflation rates.

[abhiseshakana]

From my observation, actually problem is not just inflation, considering many people see it as normal phenomena in modern economy, but the other problem many of us don't implement inflation resistant financial planning. I see many practice which show static financial model such as all saving are on cash, lifestyle change when have money or salary increase, doesn't have productive asset and no strategy to face economic change, many people only relies on salary increase without building asset or protecting value of money. I see nowdays, dangerous inflation happen on our lifestyle becuase standard of living rises more rapidly due to social media contamination. This habit make income increase but financial condition remain fragile. Based on my experiences, making money is not enough, the other important thing are ensuring purchasing power and financial healthy and resilience are maintained for long term period.

[yhiaali3]

Yes, you are right. We have many hidden battles. The economy is complex and intertwined like dominoes, so any small problem drags behind it a chain of related problems.

This scenario is exactly happening in my country now. The government raised salaries by 100% the first time and then by 50% the second time, but the citizen is still suffering more than before. The reason is simply that the government also raised energy prices such as gasoline, diesel, electricity and gas, and this led to a series of increases in the prices of related goods, and thus the situation became worse than it was before the increase.

[Swordsoffreedom]

Even if we want to get rid of inflation, I think that will never happen because inflation will probably stay longer, let's just think it this way that its part of the challenges in life and we have no other solution but to face it smart-wise.

Inflation is not entirely bad, and it is even necessary for the modern economy. Because it forces money to circulate, which in turn help drive economic growth. Inflation only become a serious problem when we fail to keep it under control, and that is exactly what we are facing now. Therefore, what we need to do is not eliminate inflation, but find way to keep it at a reasonable level

Personally, I think what's making us poor is not our low income nor high inflation, but its the behavior and attitudes we have, and how we approach this kind of life's challenges. In addition, what's making us poor is our poor mindset, if we can adopt the rich people mindset, I guess we will no longer suffer from being poor in life.

There are many causes of poverty, and these causes vary depending on the country and region.

Even if you have a rich person's mindset, how can you escape poverty if you live in a country with a corrupt government and inflation reaching 600%, like Venezuela is experiencing?

[Samlucky O]

A lot of people are working harder every single year, earning more on paper yet somehow life still feels more expensive and heavier for them, The problem isn’t always low salary.... sometimes it’s inflation quietly stealing the real value of that income. Imagine you get a 20% salary increase, but food, rent, transport, and basic living jump by 40%… so are you really progressing? The numbers look bigger, yes, but the purchasing power keeps shrinking, that’s why the informed people are now looking beyond normal savings and considering Bitcoin, not because they want to gamble, but because holding weak currency can feel like guaranteed loss. For people thinking long term, DCA into Bitcoin with spare income starts looking less like speculatin and more like protecting future value.

In my opinion the biggest financial trap is believing salary growth alone creates wealth… while inflation is quietly eating everything behind the scenes. We have a lot of unseen battles folks

the rate of inflation increase in many country is fast rising, and it is weakening the strength of fiat. many company and organisation are facing same challenge too and not only the employee with salary. it is a general thing, but the fact is that to get away with this inflation is by diversifying into other businesses, bitcoin may be an alternative but it still doesn't guarantee that nothing will happen to it. you might invest in bitcoin in bullrun and the value will reduce in bear season just like inflation does to fiat, except you are patient to hold it for many circle before you can be sure that it is guaranteed. it is good to diversify into some physical business that yield profit that can be DCA into bitcoin. without that, you may still invest in bitcoin and face same challenge when bitcoin is doing likewise fiat. bitcoin requires patient and consistency otherwise you may be tempted to sell it when it looks like inflation is also affecting it also.

[iv4n]

In my opinion the biggest financial trap is believing salary growth alone creates wealth… while inflation is quietly eating everything behind the scenes. We have a lot of unseen battles folks

One of the biggest financial traps is believing in money savings... When someone believes that stacking cash in a bank or under the pillow will magically secure their future. Inflation will slowly eat value... So if you have money, it's better to stack sats, gold, or something else that can/will outperform inflation.

The next trap is probably believing in one asset... Old but gold: Don't keep all of your eggs in one basket. It's good to have some cash; even better if you can invest in other things as well... A balanced approach, or diversification, is actually a great thing, if possible.

[Mhizlove]

Another thing is that inflation do teach people about financial awareness by force, people are now asking questions that is not being asked before on how money works, how to plan for the future and what is store value. But to be sincere not everyone is suppose to rush into any asset because fear, you see understanding is important and it comes first before action, because protection of value do not mean for you to panic when buying instead it means strategic planning. Gradually people are learning that money management is a survival skill and not luxury anymore

[Kelward]

A lot of factors makes people poor although poor salary and inflation are among the primary reasons there are broader reasons like lifestyles and health chalanges, anything that consistently takes money from you and doesn't add financial value can make you to be poor or remain stagnant. An effective way to avoid poverty is to understand financial management and practicalize it by having achievable budgets.

Inflation is an external factor in our personal finance so with proper financial management we can be able to manage it and the best way to do it is to put money for long term use or savings into a stable income or a profitable asset. Money that you don't intend to spend for a very long time should be invested in a profitable asset like Bitcoin and those that you intend to spend on a short time should be used to buy what you need and store it unless they are perishable goods. Finally you should work to increase your income, if your income is stagnant as the cost of living starts to increase your standard of living will begin to depreciate.

[Juicyhome]

One of the biggest financial traps is believing in money savings... When someone believes that stacking cash in a bank or under the pillow will magically secure their future. Inflation will slowly eat value... So if you have money, it's better to stack sats, gold, or something else that can/will outperform inflation.

The next trap is probably believing in one asset... Old but gold: Don't keep all of your eggs in one basket. It's good to have some cash; even better if you can invest in other things as well... A balanced approach, or diversification, is actually a great thing, if possible.

I disagree with you saving isn't a trap it's a good financial plan it's only a trap when the savings has not investment plan, save for a purpose not to be rich, saving won't make you rich, but saving for a purpose will make you rich. Saving is important aspect of finance, you have to gather it Small small till you have a desire or opportunity to use the funds for, if you don't have a savings you might miss an opportunity. Also save money for future use not to be rich with it, inflation will eat up your saving if you don't use it to invest or buy assets that will generate more funds.

[Fragrance1122]

I was born in 1993 and at that time the price of gold was 100 times less than the current price. The price of vegetables and fruits were 30 times less than the current prices and the fact is the prices in developed nations is still not increased in their that much but in poor countries it did.. why? the reason is all around the economy. My country is suffering because we are indebted by IMF, the printing of excessive fiat and off course the corrupt mafia politicians who are their to serve our country instead they are parasites and feed on our bloods. So, your suggestion of buying bitcoin an holding it for long-term could give even a middle man a bountiful output.

[free-bit.co.in]

One of the biggest financial traps is believing in money savings... When someone believes that stacking cash in a bank or under the pillow will magically secure their future. Inflation will slowly eat value... So if you have money, it's better to stack sats, gold, or something else that can/will outperform inflation.

The next trap is probably believing in one asset... Old but gold: Don't keep all of your eggs in one basket. It's good to have some cash; even better if you can invest in other things as well... A balanced approach, or diversification, is actually a great thing, if possible.

I disagree with you saving isn't a trap it's a good financial plan it's only a trap when the savings has not investment plan, save for a purpose not to be rich, saving won't make you rich, but saving for a purpose will make you rich. Saving is important aspect of finance, you have to gather it Small small till you have a desire or opportunity to use the funds for, if you don't have a savings you might miss an opportunity. Also save money for future use not to be rich with it, inflation will eat up your saving if you don't use it to invest or buy assets that will generate more funds.

Saving is not a trap, and it was once a financial strategy that could secure our future in a gold standard economy. But since the gold standard was abolished and the government has the right to print money freely. This makes saving outdated and no longer relevant to the modern economy.

It is not a trap, and the mistake is that many of us still cling to outdated thinking, applying 19thcentury financial formula to a system that has completely changed.

However, saving remain the fundamental basis of any financial plan. Without saving, how can we invest and hold for the long term, or cope with emergencies...? Saving is still very important, it is just that its role has changed.