As inflation takes off and goes exponential worldwide, individuals and investors alike will need to develop personal strategies to cope with and to fight this insidious enemy that is inflation, which reduces the purchasing power of the money that you have every hour, every minute, and every second of every day.
It does not matter whether you are rich, middle-class, or poor, it is more of a matter of degree. The wealthy will rightly worry about the value of their assets in an inflationary environment. With a high-enough inflation rate, even the rich can get wiped out, if they do nothing to preserve their assets .
If you are not so well-to-do, it will not get much simpler than this : as inflation takes off, the fight against inflation will literally be a fight for survival. Let's take food for example. For the middle-class folks in a middle-class society such as America or Singapore, the cost of food typically takes up around 10-15% of the total monthly income. If the cost of food doubles, this ratio goes up to 20-30%. But for the poorer folks, whose food expenses take up one-third to one-half of the total income, with rental and utilities taking up the rest, and with no further room to cut back on expenses, what happens when the cost of food doubles? Life will get very hard, very quickly. You will have to make some extremely hard choices : do you want to eat, or do you want to pay the rent - and what about the utilities?
So as you can see, no matter what economic class you are in, we have the same common enemy ~inflation
Got ideas how to beat inflation?
Get the hell out of cash. Cash is certainly not a store of value,keep just enough for your daily transactios and small buffer to tide you over in case of emergency.Invest the rest of your money in stuff that will give you higher returns( at least can beat the CPI). But,do not trap by the CPI figure.This is because the CPI calculation is a complex process, and is subject to more human interpretation than you might have imagined. Besides, CPI is a political figure. What I mean by that is simply this : there is every incentive amongst the governments of the world to report a lower CPI figure, in order to try to hide the actual rate of inflation. As the real rate of inflation takes off, governments have to come clean eventually regarding their official CPI figures, or they will end up like Zimbabwe's case~ where a banana now costs more than what a house used to be