5 ms·
This may be a bit of a nitpick but I don't think what you said is exactly true. Inflation only covers certain expenses. It doesn't include things like mortgage
by gabrielsroka 5y ago
This may be a bit of a nitpick but I don't think what you said is exactly true. Inflation only covers certain expenses. It doesn't include things like mortgage or credit card payments that are for things that you bought in the past.
So certain things will be more expensive but other ones won't.
- giantg2 5y agoThings like mortgage are just assumptions that one already has it locked in. I believe housing is included in CPI. At any rate, the value that I'm being compensated next year is less than the value I received this year.
- xienze 5y ago> At any rate, the value that I'm being compensated next year is less than the value I received this year. Not to be that guy, but has your company’s revenue increased at least as much as inflation has? If not, how can you expect them to pay you x% more “because inflation”?
- giantg2 5y agoThey are a financial company and the market has been insane over the past year. Makes it sting even more when they tell you to have financial acumen and then play dumb with the inflation pay cut.
- gabrielsroka 5y agoRent is included. Did your rent go up? I'm on a 1-year lease, so my rate didn't change. It might change when the lease ends next year.
- PeterisP 5y agoThe relationship between salary and inflation is not about the increase in your specific expenses, but about the decrease in the value of the dollar. If one employee has fixed rent and another has had a 20% jump in rent, that's not a factor that should matter when assigning raises, but the generic average inflation value definitely is, as last year's $100k is simply worth more than this year's $102k.