My Mom Put 50K In The Bank. She Lost Money.
My mother put €50,000 in the bank at 3% interest. Five years later the apartment she sold was worth €75,000. Her savings: €57,000. Nobody told her about inflation.
What you'll learn
- What inflation does to purchasing power
- Nominal versus real returns
- Why a stable bank balance can still lose value
My Mom Put 50K In The Bank. She Lost Money.
The number can stay the same
A bank balance can look stable while purchasing power declines.
Nominal versus real
A nominal return is the account number; a real return considers inflation.
The safety trap
Cash feels safe because the loss is not visible each day.
Why this matters over years
A small annual gap compounds into a meaningful purchasing-power difference.
Protect purchasing power
The goal is understanding the difference between preserving a number and preserving what it buys.
The Money Is Still There. The Wealth Is Not.
The deeper Mike Petry Journal essay connected to Episode 12, exploring the idea behind the episode from the perspective of money, behaviour and financial freedom.
Read the essay on Mike Petry Journal →What is Episode 12 about?
My mother put €50,000 in the bank at 3% interest. Five years later the apartment she sold was worth €75,000. Her savings: €57,000. Nobody told her about inflation.
What inflation does to purchasing power
A bank balance can look stable while purchasing power declines.
Nominal versus real returns
A nominal return is the account number; a real return considers inflation.
Educational and entertainment content only. This page is not financial advice. Do your own research or speak with a qualified professional before making financial decisions.