Why Am I Getting Poorer?
Measure your real income power
Compare income changes with a personal inflation index, surface spending leaks, and export a PDF report with charts and saved scenarios.
Run the analyzer to see your personal inflation, real income change, and category breakdowns.
Scenario comparison
Save different setups (e.g., raise, cut spend, switch countries) to compare purchasing power.
Results explainer
You’ll see your personal inflation rate, how your income looks after that adjustment, and where category shifts might be eating into what is left over. The cards and charts flag which categories are heating up or cooling down, and how those moves stack against your income path.
Disclaimer
Estimates are illustrative and for educational purposes only. This tool does not provide financial, investment, tax, or legal advice. Results depend on your inputs and assumptions and may not reflect real-world outcomes.
How it works
The analyzer blends your category spending into a personal inflation rate, compares it to your income change, and highlights where purchasing power may be slipping. Saved scenarios make it easy to see how different mixes change your real income trend.
Inputs used
- Current and prior income figures
- Category-level spending and inflation estimates
- Optional spending shocks or reductions you add
- Saved scenarios for side-by-side comparisons
Core formulas
- Category weight = category spend ÷ total spend
- Personal inflation = Σ(weight × category inflation)
- Real income movement ≈ (new ÷ old) ÷ (1 + personal inflation) − 1
- Gap estimate ≈ adjusted income − inflated spend
Calculation steps
- Sum your spending categories and turn each share into a weight.
- Multiply weights by inflation estimates to find your personal rate.
- Compare new income to old income after adjusting for that rate.
- Estimate the gap between adjusted income and inflated spending.
- Save scenarios and compare how category changes shift the gap.
Example scenario
Imagine last year’s take-home income was $5,000 a month and this year it is $5,250. You spend $3,400 split 45% housing at 5% inflation, 25% food at 6%, 15% transport at 3%, and 15% other at 4%. That mix lands at roughly 4.9% personal inflation. After that adjustment, the income lift shrinks to about 0.3% in real terms. Inflating the spend pushes it near $3,566, leaving a rough gap of $1,684. Save another scenario with lower subscriptions or a cheaper lease and you’ll see how cooling one hot category can widen that gap without needing a bigger raise.
Interpretation notes
- Hot categories with big weights (housing, food) drive most of the squeeze.
- Small real income gains can vanish if personal inflation runs hot.
- Side-by-side scenarios spotlight which tweaks open the widest gap.
- Short timelines soften small percentage differences; longer ones amplify them.
- Outputs are directional—match them to your own bills and tax situation.
Limitations & assumptions
The model uses steady category inflation percentages and assumes your spending mix and income path stay broadly similar over the period you choose. Taxes, benefits, debt terms, fees, and one-off events are not included. Real income movement is an approximation, not a forecast. Use the numbers to spot pressure points and trends, then validate against your own statements and plans.
FAQs
Quick answers
What does this analyzer estimate?
It blends your spending mix into a personal inflation rate, adjusts your income by that rate, and shows how much purchasing power you may be gaining or losing over time.
What is included or excluded?
Included: your income figures, category spending, and inflation estimates you enter. Excluded: taxes, debt terms, benefits changes, fees, and one-off events unless you add them manually.
What assumptions are used?
The model assumes steady category inflation over the period you choose and a similar spending mix. Real income movement is an approximation, not a forecast.
Can I save or export scenarios?
Yes. You can save multiple scenarios on this device, rename them, and export PDF or CSV summaries to compare mixes side by side.
Is my data private?
Calculations run in your browser. Inputs stay on your device unless you export a file.
Is this financial advice?
No. It is an educational model. Validate the results with your own statements and seek professional advice for decisions.
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