The impact of inflation on individuals' long-term financial planning

Inflation is one of the most important economic variables that directly and indirectly affects the financial lives of individuals. A continuous increase in the general level of prices reduces purchasing power and weakens the real value of money over time. This poses serious challenges to long-term financial planning for individuals. In inflationary conditions, cash savings lose their value and decisions about investments, retirement, buying a home and securing your future are becoming more difficult. People are forced to turn to more diverse financial instruments and investments to preserve the value of their assets. Inflation also increases economic uncertainty and makes it difficult to accurately predict the future. This has particularly severe effects for households with fixed incomes. The aim of this article is to examine the impact of inflation on individuals' long-term financial planning and analyze strategies for dealing with its negative effects. In this regard, while reviewing theoretical foundations and previous studies, the study examines the financial behavior of individuals in inflationary conditions. The results show that inflation not only changes the saving and investment pattern, but also reduces the level of economic security of individuals. Finally, financial awareness and the selection of appropriate tools can reduce the negative consequences of inflation to some extent.

کلیدواژه ها:

Inflation ، Financial Planning ، Savings ، Long-Term Investing