In this episode, Jake and Gino talk about inflation, how it impacts our lives and the various ways to hedge against it.
Key points:
Buying assets is better than stacking dollars and savings account
Prices inflate even more when demand goes up
Having long term investment in fixed assets can be one of the tools to hedge against inflation
The right time to enter any market for investment is when prices are low
Investment in apartments is a win-win situation, if you invest in a good market
Check out the full video to learn more.
Get more resources on apartment investing: …(read more)
LEARN ABOUT: Investing During Inflation
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Inflation is a term that we often hear in the news and discussions about the economy, but do we really understand how it impacts our daily lives? In simple terms, inflation is the rate at which the general level of prices for goods and services is rising, leading to a decrease in purchasing power for consumers. This means that over time, our money buys less than it did before, which can have a significant impact on our financial well-being.
So, how does inflation affect us in our day-to-day lives? Firstly, inflation leads to higher prices for goods and services, which means that we have to spend more money to buy the same things. This can put a strain on our budgets and result in a decrease in our standard of living. For example, if the price of groceries and utilities goes up, we may have less money left over for leisure activities or saving for the future.
Additionally, inflation erodes the value of our savings and investments. If the rate of inflation is higher than the rate of return on our savings or investments, the real value of our money decreases. This means that even though we may have saved up a certain amount of money, its purchasing power may not be as much as we had anticipated.
So, how can we beat inflation and protect our financial well-being? One way is to invest in assets that have a history of providing a return higher than the rate of inflation. For example, investing in stocks, real estate, or precious metals can help to preserve the value of our money over time. Additionally, investing in government bonds or certificates of deposit can provide a safe haven for our savings, as they typically offer a return that is slightly higher than the rate of inflation.
Another way to beat inflation is to increase our income through additional sources of employment or passive income streams. By diversifying our sources of income, we can better cope with rising prices and protect our purchasing power.
Finally, it is important to be mindful of our spending habits and budget our expenses wisely. By cutting out unnecessary expenses and prioritizing our needs over wants, we can stretch our dollars further and mitigate the impact of inflation on our finances.
In conclusion, inflation is a constant force that affects our daily lives and financial well-being. By understanding how inflation impacts us and implementing strategies to beat it, we can better protect our money and ensure a secure financial future.
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