It’s no secret that inflation eats away at your savings. It’s an infamously invisible financial force that makes your money less powerful, and increases prices. It’s why a dollar can only buy 5% as much as it could back in 1913.
Inflation is Starting: Food and Fuel Up 20-40%. This is depressing, but it’s happening and we should be aware of it. Food and energy prices are skyrocketing. Some essential commodities — like iron — are up 100% this year. This is bad news for any “recovery” that’s supposed to happen. Inflation is one of the biggest problems for people who want to save money — it forces them to put their money into the financial system, because storing cash will lose money over time. The higher inflation is, the more it wreaks havoc on people who are trying to save money in order to better their lives.
Here’s a quick 6-part introduction to inflation. You’ll learn what it is, what causes it, why the government likes it, and how it hurts regular people.
- What is Inflation? A quick glimpse into common definitions for what inflation is, and how to tell if inflation is happening, or if prices for something are increasing for other reasons.
- What Causes Inflation? Understanding what causes inflation is a good way to learn how to be prepared for it in the future. If you know what causes it, then you’ll know before others when to expect it to hit, meaning you can be better prepared.
- Why Does the Government Keep Creating Inflation? The government is a huge fan of inflation for a lot of reasons that should make your stomach churn. Hint: it’s unethical, back-stabbing, and done secretly.
- What is the Real Inflation Rate? Is inflation at just one rate at one time, or can it be different depending on the region, and market? Read this article to learn.
- Can Inflation and Deflation Happen at Once? The answer is: “yes.” Inflation and deflation almost always hit together. Right now, some prices are skyrocketing while others are free-falling. Learn which prices are going up and which are going down in this guide.
- How Inflation Makes Saving Money Almost Pointless. Inflation creates a debt-based economy, destroys savings, and makes retirement next-to-impossible. Learn how this works in this guide.
- What does recession mean for middle class?. Inflation is essentially political warfare against savers and investors. It makes it difficult to make it to the middle class. Inflation makes it difficult to leave poverty. Inflation is financially deadly.
- Why inflation is too high? – causes and consequences. A basic understanding of economics reveals to us that we can know for certain that inflation is going to hit us. Prices are going to start going up across the board. This article is a quick explanation for why we can know that.
Understanding inflation is the first step to preparing for it, and even profiting from it. Learn how to hedge against inflation, profit from it, and protect your savings from being eaten away. Just read the articles in the series below, and you’ll be good to go. The article series is still a work in progress, so make sure to subscribe to get the newest articles that will be added.
Prepare for Inflation/Deflation.
So, you know what inflation is. You know why it’s created. And you know it’s already starting to hit. So, what can you do? You can prepare by researching the following ways to hedge against inflation, such as with gold:
- Why is gold a hedge against inflation. Precious metals have long been seen as the best way to prepare for inflation. Gold’s supply is limited, and it historically has been the best move for preparing for inflation. I give the entire case in this guide.
- The coming great inflation and the gold price. Gold performed better the worse that the recession got. There is some historical precedent for this, but the special circumstances of the Great Recession actually added opportunity for many investors.
- Income Investing as Anti-Inflation Strategy. One of the best methods of combating inflation is through income investing. By investing in income-earning assets you are given access to more capital in order to maneuver the inflation/deflation onslaught.
- “Real” Investments Are an Inflation Hedge. The more your investments stay on “paper”, the more likely you are to be hit by inflation. This seems naive at first, but makes sense after careful analysis.
- TIPS are a Bad Inflation Hedge. Treasury Inflation-Protected Securities are horrible investments. Just read this article and you should be convinced to put your investments somewhere else that makes sense. The government isn’t to be trusted when it comes to inflation — they support inflation, after all.
- Should You Go Into Debt Because of Inflation? Inflation makes debt much cheaper than it originally seems. Does this mean you should go into debt? Not quite, and here’s why.
By mastering your plan to defeat inflation, you can actually increase your income, and profit while others are being hit with the realization that they’re money isn’t buying as much as it once did.
Feel free to bookmark this page if you don’t have time to read it all, or send a link to this page to your friends in order to make sure they’re prepared for inflation as well.