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Real money? Any financial professional here?


The news on the market often talks about "real money". What does that exactly mean?

What they actually mean, but probably don't know it, is REAL INCOME. Income of an individual, group, or country adjusted for changes in PURCHASING POWER caused by INFLATION.
If the cost of a motorcycle increases from $1,000.00 to $1,200.00 in ten years, reflecting a 20% decline in PURCHASING POWER, your salary must rise by 20% during that same ten year period of time in order for your REAL INCOME to stay the same. If durning that ten years you stayed in the same comfortable job with no change in your pay then your real income/purchasing power has fallen by 20%.

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