What you need to know about inflation in under 2 minutes

Inflation is word that people use all the time when it comes to the economy -- but do you know what the word actually means? And better yet, do you know how inflation can affect you personally?

Get to know the basics behind this buzzword from Finance Collective member, The Wild Wong. In under 2 minutes, she explains what inflation is and what you need to be aware of when it comes to your budget -- like how the inflation of oil prices affects people across the globe!
RELATED: 5 foolish mistakes investors make everyday

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5 foolish mistakes investors make everyday
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5 foolish mistakes investors make everyday
#1. Chasing performance
"Investing in the stock market is a numbers game. You want to see a return otherwise you're treading water at best. Countless times I would hear investors say, "I've only seen X% return in the past quarter!" and want to jump ship. This short-term thinking often gets you nowhere and brings added commission costs." -InvestmentZen
#2. Thinking you can beat the market
"The twin sibling of chasing performance is believing you can time the market. In many cases, market timing results in investors selling low and buying high – the opposite of what we should be trying to accomplish. As the Peter Lynch quote goes, "There are no market timers in the 'Forbes 400,'" yet the appeal draws many investors who think they can time the market." -InvestmentZen
#3. Listening to the media
"The media may be fodder for a good laugh, but in most cases, they're simply that when it comes to investing. "By far the biggest mistake I see today is letting the media dictate how you invest. While the media is loud and comes from every direction today, they simply don't know what's in your best interests," says Clint Haynes, CMFC® of NextGen Wealth." -InvestmentZen
#5. Ignoring your investments 
"Ignorance can cost investors thousands of dollars in wasted money. Whether it be a corporate action or price plummet, if you never check on your investments, you can lose big." -InvestmentZen
#4. Not being properly diversified
"Proper diversification is a hallmark of sound investing. Sadly, too many think picking a small handful of stocks means they're diversified, without realizing that they're opening themselves up to significant risk.

On the flip side, many investors think that because they invest in mutual funds or Exchange-Traded Funds (ETFs), they're diversified. Little do they realize that if they don't look at what those funds hold, they could own a group of holdings that leaves them more open to risk than they realize." -InvestmentZen

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