January 5, 2026

Happy Monday, everyone! ☀️
Good morning — hope you’re starting the week feeling refreshed and ready to ease back into the rhythm.

Quick question to kick things off: Have you ever heard people talk about inflation and thought, “Okay… but what does this actually mean for my money?”
You’re not alone. Inflation gets a bad reputation because it’s often explained in confusing, headline-heavy ways.

Today’s post breaks it down simply — how inflation really affects your money day-to-day, and why most people misunderstand what actually matters.

No doom. No jargon. Just clarity.
Let’s start the week a little smarter than we ended the last one. 💡

— Ryan Rincon, Founder at The Wealth Wagon Inc.

— Annie Duke

China signals tougher stance with military drills near Taiwan
China launched new military exercises around Taiwan, signaling displeasure over growing U.S.–Japan cooperation. The drills were framed as a warning to “external forces.” The move adds tension to an already strained regional climate and raises concerns about future escalation.

Yemeni forces, backed by Saudi Arabia, reclaim territory
Government-aligned Yemeni forces regained control of strategic areas from separatist groups with Saudi support. The push marks a rare shift in momentum in the long-running conflict. Analysts say the move could reshape local power dynamics heading into the year.

Flights canceled at O’Hare after Maduro’s capture sparks turmoil
Dozens of flights were canceled at Chicago’s O’Hare Airport after unrest in Venezuela escalated following Maduro’s capture. The situation created ripple effects across international travel routes. Authorities expect delays to continue as tensions abroad remain unpredictable.

Perez sends message of solidarity to Venezuela after U.S. action
Sergio Perez publicly backed Venezuela in response to recent U.S. military involvement. The gesture was seen as both symbolic and politically charged. It has sparked debate over the global response to the rising tensions.

Oldest former MP Sir Patrick Duffy dies at 105
Sir Patrick Duffy, a longtime political figure, has passed away at age 105. His career spanned decades and included significant contributions to British public life. Tributes highlight his commitment to diplomacy, service, and political reform.

McCarthy says lawmakers are leaving because “nothing is happening”
Kevin McCarthy criticized Congress for what he described as stagnation and lack of progress. He noted that many lawmakers are eager to leave Washington amid frustration. The comments renewed discussion about gridlock and dysfunction ahead of a tense legislative year.

Pennsylvania Turnpike tolls rise starting today
Drivers in Pennsylvania will face increased Turnpike tolls as the latest rate adjustments take effect. Officials say the boost is needed to support long-term maintenance and financial obligations. Travelers are already expressing frustration, especially amid rising travel costs more broadly.

Cruise industry gets last-minute reprieve from Hawaii’s new fee
Hawaii delayed its new environmental fee for visiting cruise ships, granting the industry an unexpected extension. The move provides operators time to adjust fleets and itineraries. Tourism officials say broader policy negotiations are still underway.

Virgin offers voyage credits after Caribbean airspace issues
Virgin announced voyage credits for affected travelers after airspace restrictions disrupted cruise routes in the Caribbean. The company said safety concerns required itinerary changes. Passengers welcomed the compensation, though many remain wary of future disruptions.

Most people think inflation just means “prices go up.”

That’s not wrong — but it’s incomplete.

Inflation isn’t just something that happens to you.
It’s something that rearranges who wins and who loses financially, often quietly.

Understanding how inflation really works helps you make better decisions about:

This isn’t theory. This shows up in real life.

One of the biggest mistakes people make is thinking inflation affects everything equally.

It doesn’t.

Different categories inflate at different rates:

For example:

This gap is where people feel “behind” even when they’re earning more.

Inflation is uneven — and that unevenness matters more than the headline number.

Holding cash feels safe.
And short-term, it is.

But long-term, inflation quietly erodes its value.

If inflation averages 4%:

Nothing “happened” to the money — but purchasing power disappeared.

This is why high-income earners who sit on cash often fall behind asset owners over time, even if they’re disciplined savers.

Assets that adjust with inflation tend to protect or grow purchasing power.

Examples:

This doesn’t mean assets always go up in a straight line.
It means over long periods, inflation pushes nominal values higher.

This is why wealth tends to concentrate with asset owners during inflationary periods.

This part surprises many people.

If you hold fixed-rate debt, inflation can reduce the real cost of that debt.

Why?

Because you’re paying it back with money that’s worth less over time.

Example:

This is why governments tolerate inflation — it reduces the real value of debt.

Important note:
This only works if:

Variable-rate debt behaves very differently.

Inflation is a stress test for businesses.

Strong businesses:

Weak businesses:

As an investor or business owner, inflation tells you who has pricing power — one of the most important traits in long-term success.

Many high earners feel inflation more sharply than expected because:

This creates a situation where someone earning more still feels financially squeezed.

The solution isn’t panic — it’s understanding where inflation is hitting your specific cost structure.

Traditionally “safe” options like:

can become risky in real terms during sustained inflation.

That doesn’t mean abandon them — it means:

Safety isn’t about avoiding volatility.
It’s about preserving purchasing power over time.

Understanding inflation helps you:

This isn’t about timing markets.
It’s about positioning yourself so inflation works against you less — and sometimes for you.

Inflation is not just an economic statistic.

It is a redistribution mechanism.

It: