Just look at housing. A $400,000 house in 2020 now costs $588,000. The down payment alone jumped from $80,000 to $120,000. Add mortgage rates climbing from 3% to 7% and your monthly payment on that same house goes from $1,350 to $3,100. Property taxes and insurance only pile on more costs. The U.S. is short 4.5 million houses, and while some price cooling is happening because buyers simply can’t afford it, the long-term trend is clear housing is becoming a luxury good.

Private equity isn’t helping either. These firms already own half a million single-family homes and are on track to control 40% of rental properties by 2030. That means fewer homes available for families and even higher prices. Some states, like New York, are considering bans on private equity purchases of rental properties, but the momentum is already shifting supply away from individual buyers.

Grocery bills tell the same story. The data says a $100 cart in 2020 now costs $125, but most of us know the pain feels higher because of shrinkflation. Packages get smaller, prices stay the same, and consumers end up with less for more. Families are coping by cutting back choosing regular products instead of organic, buying smaller quantities, or skipping extras altogether.

Meanwhile, wages aren’t keeping up. Between 2020 and 2025, inflation hit 23% while median wage growth only reached 20%. That gap might not sound huge, but over time it destroys household budgets. Workers stretch their paychecks thinner and thinner, while investors see their wealth grow. Why? Because businesses don’t eat inflation—they pass higher costs onto consumers, and the profits flow to shareholders. The stock market has surged 90% in the past five years. Inflation may crush the middle class, but it boosts returns for those who own assets.

This is the harsh truth about how the system works. It favors investors, not employees. If you rely only on wages, you’ll always feel behind. That’s why financial literacy is critical. You have to understand how money works, and then you have to put it to work. Stocks, real estate, treasuries these are tools for building wealth. The more you can shift from being just a consumer to being an investor, the more you can flip the script on inflation.

It doesn’t happen overnight. It requires consistent investing, reinvesting dividends, and a willingness to sacrifice now for growth later. I call it a decade of sacrifice 10 years of disciplined saving and investing that can completely change your financial trajectory. That’s why I’ve created a free investing master class, so people can learn how to identify opportunities and start building wealth no matter where they’re starting from.

At the same time, keep your eyes on the broader economy. In 2025, banks are tightening lending standards. Historically, this is a warning sign that an economic slowdown could be around the corner. It’s another reminder that you can’t rely on job security or wage growth alone. You need to take ownership of your financial future.

The bottom line? Inflation is here, wages aren’t keeping up, and costs are rising. But if you understand the game and play it as an investor, not just a worker, you can turn the system that seems stacked against you into one that works for you.

Jaspreet Singh is not a licensed financial advisor. He is a licensed attorney, but he is not providing you with legal advice in this article. This article, the topics discussed, and ideas presented are Jaspreet’s opinions and presented for entertainment purposes only. The information presented should not be construed as financial or legal advice. Always do your own due diligence.

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