Yes, it’s a loaded and subjective subject.

The value of money means a lot of different things to a lot of different people. For example, If I said consumer spending is growing at four percent, as was announced by the federal government last week, does that mean we have more value in money? Or more money in our pocket?

If I said to you gross domestic product is growing at 3.5 percent annually, as was reported last week, does that mean that you “feel rich”? Does this put more money in your pocket?

President Donald Trump says, “Yes, our economy is growing and people have more money!”

Guess what, folks? He’s wrong! Not totally however.

Yes, you might have one or two more dollars in your pocket than yesterday (via the tax cuts)  but what about today? What about the dollar that is in your pocket now?

You will hear the President say soon: ” It’s The Economy. It’s GDP growth; it’s the power of the consumer.”

Well, remember, you pay for goods and services based on many factors, including inflation.

So, of course, if inflation goes up, the value of the dollar in your pocket goes down. Sadly,  to make up the difference, you need more dollars.

Therefore, if inflation is going down, the value of your money should be going up and, in theory, you should need less dollars to buy the same goods and services.

Based on current economic reports last week, inflation is reportedly going down, from 2.2 percent to 1.6 percent, a 30 percent increase.

So that extra dollar, is now worth $1.30.

Yes, of course some of our lively costs are already cost fixed but you will definitely have more bang for your buck, with non-fixed or variable costs goods and services.

No, it wasn’t the tax cuts that grew your value. No it’s not trade. And definitely it’s not Bitcoin, consumer spending, Russia, nor Donald Trump.

It’s the magic of inflation, or, in this case, lack thereof.

Now, why is inflation down and more importantly, why has it been only three percent for the last 30 years when inflation was over 10 percent the decade prior? Stay tuned, that’s another non-Donald Trump story!

Today, the value of both the money you have and the tax cut monies are enhancing your wealth. Need another example? Look at your retirement plan performance for both the last two years and 30 years prior (if you had it then). No, that’s not growth! Didn’t we have two economic recessions since 1988? No, my friends, it’s the powerful magic of invisible inflation — that, when using the magic correctly — increases the value of your assets (and can even lower your debts and then, it’s not so invisible any more!

Anthony Rivieccio is the founder and CEO of The Financial Advisors Group, celebrating its 20th year as a fee-only financial planning firm specializing in solving ones financial problems. Mr. Rivieccio, a recognized financial expert since 1986, has been featured by many national and local media including: Klipingers Personal Finance, The New York Post, News 12 The Bronx, Bloomberg News Radio, BronxNet Television, the Norwood News, The West Side Manhattan Gazette, Labor Press Magazine, Financial Planning Magazine, WINS 1010 Radio, The Bronx News, and The Bronx Chronicle. Mr Rivieccio is also currently an Adjunct Professor of Business , Finance & Accounting for both,  City University of New York & Monroe College, a Private University.  For financial assistance , Anthony can be reached at  (347) 575-5045. Feel free to visit their FACEBOOK Business page for past Financial Focus articles:  www.facebook.com/iwantmytaxmoney