Is the inflation raise salary a real thing or something only most employees dream of? Let’s discuss.
Inflation’s silver lining is higher annual salaries – or is it? Employers love to say that you are getting a raise when in reality it is only an inflationary adjustment for your living expenses.
Many jobs have to increase a salary amount for employees from 2% to 3% every single year just to keep up with inflation.
Prices on everything, like cars and food are noticeably higher. For every uptick in inflation it will decrease purchasing power of your dollar value over time.
What is a fair Inflation Raise Salary Adjustment?
Consider an annual wage of $42,000 with a inflation rate is 2.2 percent.
In a single year, your salary’s purchasing power will have dropped by that same percentage and your salary next year will be worth only $41,076.
That’s in dollars which is the dollar amounts that represent the same buying power over time. Yikes.
Employers are also not quick these days to give a raise at all and even when an employee sees a small bump, its small. Several economists even make a good case that inflation can run higher than a few percentage points a year.
That’s why turning to earning yield on your USD is so important, especially if you are NOT getting those annual 2% or 3% adjustments to your salary. Start asking questions at your employer.
Inflation is Ongoing, It Does Not Really Stop
Several economists are fearing a 2021 to 2022 problem of a too-rapid increase in wages.
This could prompt companies to raise prices and create the inflation problem itself and causing more harm than good.
Even the Federal Reserve has downplayed inflationary concerns, saying they expect the current spate of price pressures to fade over time if the economy gets back to a normal state.
What if Your Employer Refuses or Denies An Inflation Rate Increase?
Don’t wait on them. Find ways to generate your own yield and passive income.
Your future is in your hands and directly tied to what you are willing to accept or do about it.
Build your own inflation raise by investing and earning higher interest rates with passive crypto income.
Staking crypto like Ethereum 2.0 with an average return of 6% (and rumored to be much higher once live) or starting an investment in passive real estate investing on Fundrise can offset your losses and help you stay ahead.
Don’t let your employer skipping an annual inflation raise to your salary bring you down. You are not alone if your employer is not offering this every year.
Take control of your own situation and find ways to earn higher interest rates on passive income for the long-term win.