-
It's not good if you are asset rich but cash poor. Eg a retired home owner planning to live off cash assets which are not increasing in value as fast as your bills.
Of course you can equity release or downsize or something but you still aren't going to be happy with the higher interest rates.
jellybaby-
You are though. A savings account last year was getting you 1% or so. You can get 4% now. So if Granny has £200k she’s gone from £2k a year to £8k. That’ll cover your food and heating bill rises no bother, and she’s probably not out buying a new car or a clothes or whatever else.
Assets m8. That’s what separates rich from poor and what they’re trying to trick you to not buying. Lease a car instead of buy one, Spotify instead of CDs, rent Microsoft office’
“Hey! Why buy stuff! Possessions are so millennium! Live for today!
Oh. Sorry, it’s tomorrow now and you can’t stop paying or we take your car, software and music away because it’s ours not yours you pleb.”
Hefty
Inflation doesn’t affect rich people as much. Food costs for a £100k earner aren’t 5x what a £20k earner eats, or needn’t be, and rich people often own assets that are inflating with inflation.