Inflation is on the rise, but which inflation? It’s the inflation as defined by economic indicators, such as CPI. But what is my inflation? Yes, my personal inflation! Personal inflation? Yes, personal inflation. It doesn’t have to match CPI or any other economic indicator. Why? Because, simply, I control which products and services I buy, and which I don’t. For example, if I usually eat out, I switch to eating at home. If I buy branded clothes, I switch to unbranded clothes. If I buy new cars, I switch to buying used ones, or better still, use public transport. If I live in expensive neighborhood, I move to another more reasonable one. So, I decide my effective inflation. I decide my cost of living. CPI doesn’t. Personal cost of living can actually go down, even with rising official economic inflation. It’s a matter of choice.
Frugality is wealth in disguise. I believe the best personal finance book one can read is “The Millionaire Next Door” by Thomas J. Stanley.