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

[Livingleged]

Inflation does not make us poor, but our poor mindset is.

Is this true? I do not think so. Inflation is making us poorer, especially those with low incomes. Inflation causes prices to rise rapidly, reducing purchasing power while basic wages fail to keep pace. Inflation is devaluing our money every day and forcing us to work harder and think more to earn more money in order to compensate for and cope with inflation.

There are many causes of poverty, inflation and a poverty mindset are among them.

Very correct, inflation is having a direct impact on people wages/ salaries as the case may. just like you’ve said,  it reduces purchasing power of the wages as it rises the general price level of goods and services, as a result of that direct impact you might not be able to afford the basic thing you could afford before.

There is this a study I did, and i was convinced that Infact inflation outpaces wages growth which is the main problem we are facing in most countries, if wages are being adjusted/increased as the inflation get higher it might probably solve the problem, but I don’t know why decision like that are crucial and time taking.

let take a look at what happened to the world economy after the Covid -19 pandemic, there was inflation the wages were not sufficient enough to take care of citizens even with the little increase it never was enough to meet the high decline in the wages.

[Supreme Donvic]

Salary is just one source of income, if you rely on it alone with a low minimum wage of income, you will really can't get rid of poverty. But if you will make this inflation crisis as your motivation to improve your skills and knowledge, and attract more side hustles, I guess that would be an effective way to reduced poverty and grow your income. Inflation does not make us poor, but our poor mindset is.

Living based on salary alone is actually a difficult way to live. That’s because, you would find yourself to be living within a range. There would be a lot of things that you would want but, your finances would never allow you to based on what you’re being paid as salary and to make things worst, there is the issue of inflation. When that comes into the picture, you would find yourself having to struggle for even the little things, living well above your means and gradually falling into debts and more debts which would result in poverty.

If you are depending only on your salary to survive especially in my country Nigeria you are going to suffer because the high cost of living is too much and the salary they pay is very small and cannot take care for all your needs especially if you have a family so it is very important to have a side hustle in order to survive the present economy in my country depending only on your job will lead you to poverty and just like you said you will be borrowing in order to survive a lot of workers in my country they borrow money and when they get paid they pay back and borrow again this is how they live their life because the money they are paying them as salary is not enough to take care of all their needs.

[Y3shot]

I agree it is not about salary because you can even increase your income by having additional job but still it will look as if your salary is not enough. If you think salary is the problem you will always struggle to meet up but the main thing is to critically look how to go against inflation by investing in asset that will add value to your income. The mistakes most people normally make they only focus in increasing their income but they never think of to invest because when their is inflation it also important to have an investment at hand too.

[Halifat]

Salary is just one source of income, if you rely on it alone with a low minimum wage of income, you will really can't get rid of poverty. But if you will make this inflation crisis as your motivation to improve your skills and knowledge, and attract more side hustles, I guess that would be an effective way to reduced poverty and grow your income. Inflation does not make us poor, but our poor mindset is.

Living based on salary alone is actually a difficult way to live. That’s because, you would find yourself to be living within a range. There would be a lot of things that you would want but, your finances would never allow you to based on what you’re being paid as salary and to make things worst, there is the issue of inflation. When that comes into the picture, you would find yourself having to struggle for even the little things, living well above your means and gradually falling into debts and more debts which would result in poverty.

I don't know how salary will grow someone to become wealth, i keep asking myself this question but I couldn't find this question, i actually agree with you when you say salary is just a one source, not even salary, I don't think anyone can build his wealth through one source because there are so many things cover up, the only thing that can be solved with salary is the home needs apart from that not more, this is why we should always try to live within our means.

[Rockson1]

You are right, if not for inflation, individual salary would have enough to for their needs and investment but due to inflation, the purchasing power of fiat has been reduced to nothing, the single or even double salary is not even enough for their essential needs talk more of investing in anything so op the you are correct that inflation is the problem in regards to the subject of discussion but many nation are still managing this inflation, some nation has failed to start managing what they have to go more on productions instead relying mainly on other countries good for survival, many Nations are currently facing hyper inflation because of their lack of fiscal planning and implementation of good economic policies that can help in tackling inflation to some extent.

[terrific]

I don't know how salary will grow someone to become wealth, i keep asking myself this question but I couldn't find this question, i actually agree with you when you say salary is just a one source, not even salary, I don't think anyone can build his wealth through one source because there are so many things cover up, the only thing that can be solved with salary is the home needs apart from that not more, this is why we should always try to live within our means.

Having a salary won't be enough to be wealthy. But that has to be the start of someone's dream into becoming wealthy.
With how we spend that salary and putting it into assets, that's just a way. What needs to be done is to increase our income.
Getting multiple income streams will make things easier and so as investing too. That will be two ways of the many on how someone can build wealth while dealing with inflation.

[Uruhara]

I agree it is not about salary because you can even increase your income by having additional job but still it will look as if your salary is not enough. If you think salary is the problem you will always struggle to meet up but the main thing is to critically look how to go against inflation by investing in asset that will add value to your income. The mistakes most people normally make they only focus in increasing their income but they never think of to invest because when their is inflation it also important to have an investment at hand too.

I think the most important thing is to maintain financial stability first, then try to increase your income and cut back on unnecessary expenses; only then can we invest with peace of mind. And never think of relying solely on a salary forever. Instead, we must seek out business opportunities and build up capital and broad knowledge to prepare for starting a business, should the day come when we have sufficient capital (which can also be saved through investments), and a promising business opportunity arises that we’ve already studied and mastered, then that’s when we’ll be ready to take a bigger step. So, yes, investing is very important, but we must also always think about how to increase our income and have a plan to build a business someday. that way, we’ll be better prepared.

[Mame89]

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

Absolutely. A salary increase is indeed one of the most dangerous financial traps because it feels like we're secure, but behind that lies undetected difficulties. Many people feel like their salary increases are, for example 10 to 15% each year, but they forget that inflation also occurs every year. When income is subtracted from inflation, the real increase is only 2-5% or even negative.

Their salaries may increase but purchasing power stagnates or even declines. Add to this the influence of lifestyles, so without us realizing it our lifestyle continues to improve, but salary increases are not matched. This is because our salary increases cannot keep up with real inflation or price increases on the ground. So, inflation is indeed a real enemy for all of us which is why Bitcoin was born it can combat inflation. In conclusion to avoid poverty and combat inflation we must have assets that can combat inflation such as Bitcoin and gold.

[KiaKia]

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

Yeah, well education was very popular in my country many years ago compare to now because once you get salary incoming your life is set for good, millions of people did sso well with salary alone and that doesn't lasted for long.

Today even those with degrees are suffering because the salary alone isn't cutting it for them, but there is always some level to salary itself, some salaries are not common and are very big unlike the rest.

The question is what are you doing to get the biggest salary payout if salary earning is what you wanna do for the rest of your life? You have the freedom to choose, but I don't even like working under a boss, I like been a boss of myself.

[Faisal2202]

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

Salary alone could never create that wealth wall for you and for your family. You have to step up, like start diversifying your savings or additional funds that you don't care to lose, into different assets and start building your life as little as you could. Because the biggest mistake we make is when we think our small steps won't matter, but when we see someone changing their lives by taking the same kind of small steps that you were thinking to take, you will regret it.

Because it all started a decade ago and then you did not think about your life and how it is going to be. With current inflation, the next 10 years are going to be tougher, that's why building small startups, investments etc. are the only way for us to make our living better. I have seen people in government jobs doing two extra jobs because they don't take bribes, so to make a better living they are working, started their e-commerce business and even are in trading.

[Asiska02]

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

If you depend on salary only, there will come a time you’ll ask yourself if you’re really even working to just serve the government, or you’re working to pay up your bills. Everything just looks not worth it in the long term, especially when you don’t have another means to support your salary work.

Before you’ll get one increment in your salary, inflation would have come around to hit several times, this is not a conducive system for anyone. Having another source that can fetch you more income is important and people are no more depending on only one source of income again, they depend on more streams of income.

[Berry2d]

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

If you depend on salary only, there will come a time you’ll ask yourself if you’re really even working to just serve the government, or you’re working to pay up your bills. Everything just looks not worth it in the long term, especially when you don’t have another means to support your salary work.

Before you’ll get one increment in your salary, inflation would have come around to hit several times, this is not a conducive system for anyone. Having another source that can fetch you more income is important and people are no more depending on only one source of income again, they depend on more streams of income.

With the uncontrollable flauntion we experience in our economy now, I will say depending on one success of income is the greatest mistake know one should ever think of making know matter what.
The most consistent news that don't waste time coming up everyday is an uncontrollable inflation, inflation has take over everything and the only solution is not to be dependent on one success of income that is for those that wishes to get over this situation that is seen as the subject matter.
As for salary increment for those that are dependent on salary alone, that is like a journey that has no destination because it will be very difficult getting this so called salary increment.

[alastantiger]

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

In my own opinion both salary and inflation are making people poor because if you are a salary earner and you depend only on your salary you won't be able to afford a decent life and also have enough money left for investing because there is no one earning salary that is among those that are financially free. A salary keeps you as a slave because you will constantly need to be working for you to be able to earn that salary but that is not how wealth is meant to be created.

Inflation on the other hand is a constant and it will always keep happening hence you cannot wish for it to discontinue instead what you should do is to prepare your income to be able to overpower whatever inflation has in plan for the future. When you have income coming from different sources of making money then you won't be scared of inflation because regardless of what the inflation is at that moment you'll be able to live a worthy life feed your family and also have investment in different things.

[Etranger]

I agree it is not about salary because you can even increase your income by having additional job but still it will look as if your salary is not enough. If you think salary is the problem you will always struggle to meet up but the main thing is to critically look how to go against inflation by investing in asset that will add value to your income. The mistakes most people normally make they only focus in increasing their income but they never think of to invest because when their is inflation it also important to have an investment at hand too.

This sounds very right and good, but there is clearly an invisible condition here, which is to already have the funds to invest that will help you outrun inflation. But that is already the second stage. Where do you get these investment funds in the first place? Most people have to set aside and accumulate them from their salary. And how do you set aside and accumulate them if your salary only allows you to cover basic needs? Only by increasing your qualifications and the salary itself. And yes, this is exactly how people end up in this wheel of chasing a salary, even though their goal is to get out of this circle and start investing.

[aoluain]

We have a lot of unseen battles folks

There are indeed a lot of unseen battles.

It was just reported in my country yesterday that real inflation is running at around 5% and that
it could rise next year to 7%. The majority of people are not aware of this. They believe the establishments
"officicial" report of around 2.5%.

The big deal for people is that over the last number of years their salaries have not been kept in line
with the real percentage rate.

As I mentioned before most people dont have financial education and are not aware of the true implications
of inflation or how it even happens.

[Finebone]

I agree it is not about salary because you can even increase your income by having additional job but still it will look as if your salary is not enough. If you think salary is the problem you will always struggle to meet up but the main thing is to critically look how to go against inflation by investing in asset that will add value to your income. The mistakes most people normally make they only focus in increasing their income but they never think of to invest because when their is inflation it also important to have an investment at hand too.

I agree with you that salary is not the main cause of poverty, but it's neither the path to wealth either, because you can never be rich if you rely on it alone, and if you cannot multiply your money, because investment is the only way you do that.

Inflation plays it own role on making your salary looks like peanut, no matter how big your salary is, but if you are a business person, you will feel less of the effect like salary earner, so I agree with your sentiment here that to beat inflation, you have to invest in an asset that appreciates in value overtime, because that's the only way you can grow rich and your asset will beat inflation along the line.

[Odohu]

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 a country where the inflation is extremely high, even companies and businesses will be so affected that they will have no option than to downsize. In such situation, salary adjustment is insufficient to keep the workers afloat. This means the post is not entirely correct because salary rarely make people rich, it only make people comfortable. Most of the richest people in the world are not those on salary but people that own businesses.

[davis196]

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 system is designed that way. The capitalistic system favors the rich and exploits the poor. Feudalism and slavery weren't any better.
I'm not shitting on capitalism here, there are some positive sides of that economic system. You could find your way out of poverty, if you work hard and play your cards smart. You are kinda wrong about salaries not making people poor. A low salary keeps you poor because your labor is undervalued and it doesn't allow you to save enough money to start investing and achieve financial freedom. Bitcoin isn't a silver bullet here. BTC cannot make a poor person rich.

[goldkingcoiner]

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

Well, yes but corporations are using inflation as a scapegoat to not pay their workers more money when their profits would not only justify, but demand an increase in salary to counter the inflation. All services and products become more expensive but the salaries stay the same? What kind of degenerate modern slavery is this and why is it allowed?

Everyone is entitled to raise the price of their own "services". And they should not only ask but demand a pay raise.

[Zanab247]

I agree it is not about salary because you can even increase your income by having additional job but still it will look as if your salary is not enough. If you think salary is the problem you will always struggle to meet up but the main thing is to critically look how to go against inflation by investing in asset that will add value to your income. The mistakes most people normally make they only focus in increasing their income but they never think of to invest because when their is inflation it also important to have an investment at hand too.

There are some people that used their salary to created some small business around where they are working and they are doing well despite the inflation that is affecting other people in their country. The best way to overcome inflation, make sure you have other businesses that will be bringing you profits that will make you not to touch your salary and you will surely make progress that will make other salary earners to follow your strategy to become wealthy in the future.

You don't need to save your profit so long before you will know what to do, because it will not boost your wealth than to start thinking some potential coins you can invest at the moment to have access to double profit in the future.