10 Best Ways To Beat Inflation (Investments During Inflation) 0:00

Epic Economist Inflation Intro 0:35

FFG puts things in context and gives his take on inflation 2:58

1. Make needed major purchases & build up your surplus of goods now. 4:25
(Buy a little extra now and get ahead of price increases. Small changes in interest rates makes a big deal on major purchases. Potentially, hundreds of dollars per month. Also, debt cost less under inflationary conditions.)

2. Put “non-emergency” savings to work. 5:34
(Inflation over 2% annually will decrease buying power. Currently, annual inflation is 8.5%. Now is not the time to sit on cash. $100 one year ago is now worth $91.50.)

3. Buy TIPS = Treasury Inflation Protected Securities. 6:20
(As interest rates increase, the return-on-investment, ROI, also increases 1-to-1 with inflation. TIPS can easily be purchased via ETFs, Exchange Traded Funds. TIPS will likely underperform the broader market; however, TIPS will stave off inflation).

4. Buy the dip. 7:46
(The S&P 500 has returned an annualized average return of around 10.5% from 1957 through 2021. At this rate of compound interest, money doubled approximately every 7 years.)

5. Develop in “more valuable, in-demand” skills. 8:58
(Increase compensation per unit of work performed. Skilled employees are also much more likely to receive inflation adjustments and raises. Many tech companies have enacted multiple inflation raises/adjustments across their workforce. This is true for most high-skilled industries. The federal minimum wage of $7.25 has not changed since 2009.)

6. Invest in hard assets, commodities, and hedges (precious metal, gold, oil, lumber, Bitcoin, insurance products, etc.) 10:39
(These will serve as a store of wealth. As inflation increases, so will the cost / value of many hard commodities.)

7. Avoid growth stocks, buy value stocks and cyclicals. 11:40
(Growth stocks often have lots of debt that becomes more difficult and expensive to repay. Good value stocks right now include oil, energy, banks, and consumer defensives like Walmart.)

8. Portfolio diversification with “UNCORRELATED” assets. 12:53
(Lack of asset diversity will leave you over exposed. Different asset classes perform differently under different market conditions. One example of this is the “Golden Butterfly” Portfolio: 20% Total Stock Market, 20% Small Cap Value, 20% Long Term Bonds, 20% Short Term Bonds, 20% Gold.)

9. Share or rent non-essentials. 14:32
(Sharing and short-term rental can reduce expenses for non-essentials. Join a gym instead of buying a new treadmill. If you’re not married, get a roommate. If you’re renting, do not get extra bedrooms. Rent a car instead of buying one just for road trips.)

10. Walk, bike, and carpool more. 15:41
(Kill two birds with one stone. This will lower the costs for both transportation and fitness related expenses. Car poling can help build friendships. If you do this, be sure to be on time and courteous.)

BONUS: TAKE CARE OF YOUR HEALTH 16:29
Being sick is very expensive. Your body and mind are your best economic tools.

FFG Outro 16:44

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LEARN ABOUT: Investing During Inflation

REVEALED: Best Investment During Inflation

HOW TO INVEST IN GOLD: Gold IRA Investing

HOW TO INVEST IN SILVER: Silver IRA Investing

Inflation can have a significant impact on our finances, eroding the purchasing power of our money over time. It is essential to take steps to protect our savings and investments from the effects of inflation. Here are 10 of the best ways to beat inflation and grow your wealth during inflationary periods.

1. Stocks and Equities:
Investing in the stock market can be an effective way to beat inflation. Historically, stocks have outperformed inflation and provided attractive returns over the long term. By owning shares in companies with a solid track record, you can benefit from potential capital appreciation and dividend income.

2. Real Estate:
Real estate investments are often considered a hedge against inflation. Rental income tends to increase during inflationary periods, maintaining the value of your investment. Additionally, real estate can provide a consistent return on investment and potential tax benefits.

3. Treasury Inflation-Protected Securities (TIPS):
TIPS are a type of government bond that adjusts its principal value based on inflation rates. The interest payments also increase in line with inflation, providing a guaranteed return above inflation. They can be a reliable investment option for investors seeking protection against inflation.

4. Commodities:
Investing in commodities like gold, oil, or agricultural products can act as a hedge against inflation. During times of inflation, the prices of commodities tend to rise as demand increases. Investors can consider investing in commodity-based Exchange-Traded Funds (ETFs) or futures contracts to gain exposure to this asset class.

5. Diversify Globally:
Diversification is key to managing risk in any investment portfolio. By diversifying globally, you can spread your investments across different regions and sectors, reducing the impact of inflation in any particular market.

6. High-yield bonds:
Consider investing in high-yield bonds issued by companies with a low credit rating. These bonds typically offer higher interest rates to compensate for the higher risk. As interest rates increase during inflation, the value of these bonds tends to rise, providing protection against inflation.

7. Dividend-paying stocks:
Investing in companies that consistently pay dividends can provide a steady income stream that can keep pace with inflation. Dividend payments tend to increase over time, ensuring a growing income even during inflationary periods.

8. Inflation-indexed annuities:
Annuities that are indexed to inflation can be an attractive option for retirees or those seeking a guaranteed income stream. These annuities adjust their payouts based on inflation rates, ensuring that your income maintains its purchasing power.

9. Peer-to-peer lending:
Engaging in peer-to-peer lending platforms can be a way to beat inflation. By lending money directly to consumers or small businesses, you can earn higher interest rates that outpace inflation. However, keep in mind that peer-to-peer lending involves risks, including default by borrowers.

10. Continuous Education:
Lastly, investing in your knowledge and skills is crucial for beating inflation. By staying up-to-date with market trends, financial strategies, and investment opportunities, you can make informed decisions and adapt your portfolio accordingly.

Remember, while these investment strategies may help protect against inflation, they also involve risks. Prior to making any investment decisions, it is essential to conduct thorough research, consult with a financial advisor, and consider your risk tolerance and financial goals.