The world has gone nuts, Governments of the world even more so.
To finance much of the recent restrictions and subsequent loss of income for all, the money prinitng machines have been humming…
and printing vast amounts.
I know this is for sure in the US and the UK.
I would hazard it to be true for most parts of the world.
What does that means though?
I thought money was a good thing and not something to be scared of?
Well, yes, on one level.. But we have frankenmoney if you will.
As it isn’t a tangible thing and more of a concept, its value can be easily tampered with…
Which running the money printing presses will do.
I want to let you into a secret and a great hack for understanding economics speak.
When someone says ‘inflation’ think ‘money losing value’.
So if inflation is 2%, that means your cash has lost 2% of its value over whatever the period (usually a year).
The aim for those in charge is to keep inflation at 2% per year, there are reasons for that, but if you are responsible with money then those reasons aren’t benefits for you in most cases.
We see this loss of value in money as prices rising. Expect double digit rises in the next few years.
So, what can you do about it?
If you are looking to ‘preserve’ the value of your money, switching out to hard assets is usually the way to go.
Gold, Silver, Real Estate, even Bitcoin falls into this category (although not a hard asset technically and also has many factors effecting its volatility currently).
(I wrote an article about Crypto which I believe to still be relevant now which you can check out here, even after yesterday’s spike)
What this also means is that you can look at this inflation as your wages dropping by the same percentage.
So now may be the time to go all in on the side hustle.
If you increase your money coming in, you can stave off the ‘loss’ we are all likely to experience.
To your future,