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
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3 comments:
Hey,fren,Zimbabwe lack of man? Why banana can cost more than a house?We can migrate to Zimbabwe to help them to beat inflation!
Inflation is horrible… and it’s a lot worse than what the government admits, that’s for sure. No way inflation was just 3% last year.
Women’s common enemy is the sex maniac.
How to prevent it? Hide yourself from sex maniac? Install safety gate at your “organ” to recognize incomer?
Everybody’s common enemy is natural disaster.
How to prevent earthquake threat?
Don’t stay in your house?
How to prevent cyclone threat? Stay on the top of mountain?
All bullshit theory only, perhaps copied from Google or somewhere.
If someone knows how to invest a portfolio which can guarantee return more than CPI, you think he needs to worry about inflation? You go and ask Bill Gates if he dares to guarantee this? You go and ask George Soros if he dares to guarantee this?
Maybe you want to be a professional risk taker again. Who knows?
Let’s go back to your Zimbabwe example. What kind of investment can cover you from inflation rate in Zimbabwe ? I suppose commodities are the only option or I can be even specific – gold will be the first choice. Do you encourage everybody keep on buy gold everyday? Then how about the “inflation” of gold price itself? When worldwide demand is there, where are you going to find your gold? How about the gold price? Double? Triple?
If share market is your investment target, you think you can make money in Zimbabwe ? Or through FOREX market? Or land bank is a definite security? How about nationalization? Or act like 1960s Vietnam Chinese, use gold to run away from Vietnam to restart your life in another country?
Experience told me that some people have no choice. That’s why we have so many robberies. That’s why we have smugglers. Survival of the fittest – the law of jungle perhaps can give us some answers.
Nobody dares to “guide” others how to fight inflation. Not even a country.
Sound like you don’t make sense on “preventation”.Maybe you are a doctor who prefer cure to prevent, I am safety officer who prefer prevent to cure. That’s why we came out with different view. A bit pity on your gf, stay with a man lack of safety & preventation knowledge.
Up to now, don’t have a tool can prevent natural disaster, that is common sense, no need mention here. However,please make difference between “human-made accident” with natural disaster.
Those are bullshit theory or bull theory, base on either your bullshit or bull thinking. I got no objection.
You really like a nut who forced to accept all the fact. Nobody can guarantee of investment return, even Warren Buffet or George Soros can’t guarantee of it. I am not able to beat an inflation for a country,if I can make it I can replace Bush on his position, stand at Obama’s stage to give his speech. My point here is for personal profile but not for a country. Please take note.
The Zimbabwe example just want to tell everyone that CPI figure is fake for every country. Make everyone alert of the FD interest rate, which can’t cover “that” CPI figure. I never agree that Gold is the first choice. Investing in stock market is easiest and surest way to build a profit-pumping pipeline. According to Jeremy Siegel’s book stock for the long run, in the 195years from 1802 to 1997, a dollar invested in gold would have grown to just $11.70. The same dollar invested in stocks would have compounded to $7.5 million!! Even I don’t like to talk about history, your sound like fact with proof,then I show to you!
If you are smart enough, rapidly trading in & out of stock can potentially make an individual a lot of money.
What is “No Choice”? If only left 1 woman in this world, she got dinosaur look, when you need sexual intercourse,you force to fuck her.That is what you mean by “no choice”?
I can tell you this is called as “attitude problem”
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