Personal inflation
Why Am I Getting Poorer Guide and Tool Walkthrough
This why am I getting poorer guide shows how the tool estimates personal inflation and real income change so you can see why your budget feels tight. It stays plain-English, keeps sentences short, and sends you straight to the calculator with quick examples and safety notes.
Published: January 7, 2026 · Updated: January 7, 2026 · By FinToolSuite Editorial
Open the Why Am I Getting Poorer tool
Check your personal inflation, real income direction, and the gap estimate.
Legal and safety disclaimer
- Educational purposes only. Not financial, tax, legal, or investment advice.
- Examples are illustrative and simplified.
- Results depend on your inputs and assumptions and are not guaranteed.
Why am I getting poorer guide: what the tool does
The tool measures how your purchasing power moves by comparing your income change to your personal inflation. It highlights pressure points, shows where category costs run hot, and surfaces the gap between adjusted income and inflated spending.
Open it to see personal inflation, real income change, and a gap estimate all in one place, then jump to the step-by-step walkthrough when you want deeper setup help.
Inputs explained
- Last year income vs this year income: enter the same cadence (annual vs monthly) so the comparison stays clean.
- Country and CPI default: picking a country loads a CPI baseline; you can override category inflations to fit your basket.
- Category spending amounts: list your key categories to set weights for the personal inflation index.
- Category inflation entries: keep assumptions realistic; align with your own experience rather than chasing headline numbers.
- Optional breakdowns: add shocks or reductions if you want to test cuts or one-off changes without touching every line.
Outputs explained (directional, not a forecast)
- Personal inflation rate: weighted by your spend mix, not a population CPI.
- Real income movement: shows how pay changes after inflation pressure.
- Gap estimate: compares inflation-adjusted income to inflated spend to show a directional gap.
- Category breakdowns and charts: see which categories drive the pressure and how they stack in visuals.
Use these outputs with context from real vs nominal income basics so you keep expectations grounded.
Two quick examples
Raise but housing runs hot
Income: $70,000 to $74,000 (+5.7%). Housing spend jumps 12%, groceries 5%, transport 3%, other 2%. Personal inflation lands near 7%. Real income change is roughly flat, and the gap estimate shows housing is the driver. Try it.
No raise but spending mix cools
Income holds at $60,000. Housing stays flat after a lease renewal, groceries rise 3%, transport falls 2% after switching routes. Personal inflation comes in around 2%. Real income dips slightly, but the gap narrows because the mix cooled. Try it.
Scenarios and PDF export
Save scenarios to compare changes over time—use one baseline, then adjust a single lever to see direction without muddying the test. Visit the scenario comparison tips for a checklist.
Download a PDF snapshot with your inputs, outputs, and charts for your records. See export help for what is included and how to store it safely.
Safety notes
- Avoid false precision; round numbers are fine for a directional view.
- Keep assumptions consistent when comparing scenarios so differences stay clear.
- Use conservative inputs where unsure, and read limitations before deciding next steps.
FAQs
How does the tool mix my inflation and income change? ▼
It builds your personal inflation from your category weights, lines it up with your income change, then shows a real income direction and a gap estimate.
Do I have to keep the CPI defaults? ▼
No. They’re just a starting point. Adjust category inflations to match your own basket.
Can I start with one category like housing? ▼
Yes. Tweak one category and see how its weight and inflation shift your rate.
What if my income is monthly but spending is annual? ▼
Convert both to the same cadence before you enter them so the comparison stays clean.
How do scenarios work with the gap estimate? ▼
Save a baseline, change one input, then compare the gap direction to see which factor adds pressure.
Is any data stored? ▼
Calculators run in your browser; see the Privacy Policy for handling details.
Check your personal inflation now
Run the tool to see your personal inflation index, real income change, and gap estimate.
Need a refresher first? Read the how-to guide or learn the personal inflation definition.