📄️ Nominal vs real
Learn the difference between nominal and real returns in investing, wages, and economic data. Master inflation-adjusted thinking.
📄️ How to deflate
Master the deflation formula to convert nominal dollars to real purchasing power. Step-by-step examples for wages, housing, and investments.
📄️ CPI deflators & FRED
Learn to use FRED to find CPI deflators and inflation data. Step-by-step guide to Federal Reserve Economic Data for real-value calculations.
📄️ Rule of 72
Learn the Rule of 72 explained. Fast mental math to calculate how long until investments double or inflation halves your purchasing power.
📄️ Rules of 114 & 144
Learn the Rule of 114 (tripling) and Rule of 144 (quadrupling). Extended mental math for long-term wealth building and inflation impacts.
📄️ Real wages
Understand real wage growth over decades. Why nominal wages doubled but purchasing power stagnated for typical workers.
📄️ Real vs nominal returns
Understand the difference between real and nominal investment returns. Why 10% nominal might be only 6% real, and why this matters for wealth building.
📄️ The Fisher equation
Master the Fisher equation for precise real return calculations. When simple subtraction isn't accurate enough for inflation adjustments.
📄️ Stocks for the Long Run
Understand stocks' real returns over centuries. Why stocks beat bonds, inflation, and cash for long-term wealth building, explained with real data.
📄️ House prices (Case-Shiller)
Analyze house prices in real terms using Case-Shiller index. Understand why nominal price highs don't mean affordability has improved.
📄️ Median income (real)
Analyze median household income adjusted for inflation. 50 years of data reveals purchasing power stagnation despite nominal growth.
📄️ Real GDP per capita
Analyze real GDP per capita to understand economic growth beyond nominal headline numbers. Why aggregate growth masks distributional inequality.
📄️ Spotting money illusion
Learn to identify misleading financial headlines and money illusion. How to fact-check nominal numbers for true purchasing power context.
📄️ Constant dollars
Master constant dollar terminology. Learn what '2012 dollars' means and how to convert between different base years for economic analysis.
📄️ Building the habit
Master the real-terms mental habit. Three-question checklist and practice scenarios to automatically think in inflation-adjusted terms.