Post-pandemic inflation is a massive opportunity (only if you follow the historical financial strategies)

This is the time when most governments would try to step in and resolve the situation. They give out money (like stimulus packages) to make sure that businesses and people are okay. 

The idea is to create money one way or another to ensure people and businesses can pay their expenses. Australia has done the same. The Reserve Bank of Australia prints money through its quantitative easing program.

But here’s why "creating money" leads to a BIG problem:

It’s naïve to expect to put more money in the system and expect the currency to be worth the same as it was before. There is a rapid increase in inflation in a quest to “print” currency to help people.

Inflation means your purchasing power drops. You can buy less with the same amount of money. What makes it worse is that in a post-pandemic world, the income levels of people seldom exceed inflation.

Inflation leads to an adverse impact on employees since they can only sell their time. When you trade time for money, the amount that you can earn will always be limited. An annual pay raise (if it comes at all) is not worth it.

What does not help is that the interest rate on your cards and loan is going to increase. The banks increase the interest rate to counter inflation, making your “debt mountain” even steeper.

Saving money in your bank account also does not help since the interest paid on this money by the bank doesn’t keep up with inflation at all.

It’s an ominous scenario!

But here’s the good news. There are ways to profit from inflation by using methods that nobody is talking about. It comes down to a few simple measures.

Income - Let's try and maximize it and secure it. You do this by obtaining more skills and working hard. Being highly-skilled and hard to replace helps.

Expenses - While that's obvious, try and minimize the expenses. A homemade coffee is 90% percent as good as The Coffee Club.

Commodities - One of the best ways to hedge against inflation is invest in commodities. Commodity prices rise when inflation is accelerating. Investing in commodities will offer a hedge against inflation.

Savings - A bit of gold, risk free bonds, and other diversification is a great hedge. Look out for investments that often move higher as economic conditions get worse.

Stock mutual funds - There are many ways to include stocks in your long-term plan. If you're relatively untrained or short on time and knowledge, you could go for stock mutual funds. This way you can reap the benefits of professional management. Most stock mutual funds demonstrate long-term growth potential as individual stocks. However, as you approach retirement, try and shift investments and assets to a more conservative portfolio.

Here’s the historical secret that only the rich know!

Step 1: Borrow money from the bank. It is better if you can secure it at a fixed rate.

Step 2: Buy an asset that covers the debt payment and brings in positive cash flow (and automatically hedges against inflation.)

Since the debt payment is fixed, it becomes less of a cost as your currency loses purchasing power and your investment grows. The repayment of the loan is at your advantage, as the value of money goes down with inflation.

For instance, you could buy a property using debt. Now you pay the debt payment while earning rent.

Not to forget, rents almost always rise due to inflation. This means more cash flow. You owe the bank a fixed payment. But, the rising costs of rent would mean more money into your pocket.

So you can always guard yourself by capitalizing on inflation-hedge investments like residential rentals.

You are buying an asset that is expected to increase its value over time. Real estate is a powerful weapon that can help you fight post-pandemic inflation. All you need to focus on is to invest carefully.

It's the most proven investment strategy that serves well in any inflationary economy. Probably the best way to stay ahead of the curve and grow richer.

Last year, a hot dog cost $1. This year, it costs $2, but the hot dog itself hasn’t gotten any more useful. As a result, you get much less for your money. That’s inflation.

Simply speaking, what cost you $1 a hundred years ago now costs you $30. So holding on to paper money looks like a bad idea.

This means it is a bubble. In all prior inflation bubbles, the rich guys made their money first. These are banks, hedge funds, and of course, the governments. But now you have to stay ahead. That’s where financial management and guidance come into the picture.

Because regardless of what happens, post-pandemic inflation is here to stay. It’s horrifying to imagine how prices might go up while you lose the value of money and your income. Think about it. One hundred dollars used to go a lot further. Now it’s worth nothing.

No need to panic. Time to get serious and prepare. 

You can’t wage a war against inflation without the right weapons at your disposal. You need to look at your entire portfolio and then understand what's the next step.

Therefore, the first step towards guarding inflation is to understand where you stand. Contact us for a quick demo call.

We’ll introduce you to Myfingraph so you can have access to a powerful snapshot of your current financial position. We’ll cover many important topics, including:

● Transforming your money mindset 

● Get organized with personal finances

● Know the right way to save money even with a modest salary

● Destroy your bad debt

● Ways to build real wealth that lasts a lifetime

● Plan for emergencies

Let’s make your money work for you. 

With an invaluable one-on-one session, you can create a solid foundation for your life that’s rich in every way. It’s time to change the trajectory of your life and set up the future you want for yourself.

Get your financial edge here.

Disclaimer: This article is not financial advice. The circumstances of individuals may differ, and you must get financial advice where necessary. What follows here is our personal and subjective opinion. It’s based on simple strategies that have helped us and our clients earn great income over the years.