Not feeling the Inflation...? Wrongggg!!!!

It is the dreaded word in financial planning..inflation!
A dirty, filthy word for those of us who are trying to protect our wealth.

You don't think much about it now if you look around the city with the sales every where and shopping galore that is distracting us...but the reality is.....INFLATION is creeping up!

The numbers in the US economy shows that food prices hit a record level last month and in fact it is the highest it has ever been since 1990. On the local front, CPI for December 2010 is 2.2%, up from 2.0% in November and just 0.6% in all of 2009. Please don't expect a reverse in these numbers for the January 2011 either because indications are strong that the upward trend will continue.

This is an important barometer for all of us to monitor because, 40% of household income goes to FOOD!...Yup! Makanan!

When you have pressure from increased cost of living, it takes a toll on your savings plans.

We will further be pressured by INFLATION as further reduction on fuel and food subsidies is expected to continue under the government rationalization plan. The price of petrol is expected to increase 10sen every six month...Scary, is it!?

What do we do!?!....Its time to review that spending and expenses list and perhaps a resetting of priorities to protect your BIG financial goals and objectives.

Ignoring this element will cost you dearly. At the same time, do not be too overly frighten by the dim prospects this blog carries as there are many alternatives and choices still available to protect your money.

You might want to consider GOLD!...

will share more in the next blog)...stay tune!