Wall Street might claim to have the answer on how to beat inflation, but if you’ve ever lost money on an investment, you’ll understand that’s not necessarily the case.
The First Step In How To Beat Inflation
Before we can learn how to beat inflation, it’s important that we understand what inflation really is, and how it affects you.
While many people think of inflation as the rising cost of goods, in reality it’s the loss of purchasing power within our currency. With central banks around the globe running the printing presses nonstop, the currency in nearly every nation is losing value with every new dollar created. That’s inflation.
It’s not that the shop owners and business are raising their prices, it’s that there’s more dollars in circulation so therefore prices have to rise to meet the available pool of currency. It’s the law of economics.
Let’s take a look at an example to clarify this point. The “official” inflation since 1990 is 2.6% on average. Unfortunately the “official” numbers stopped taking into account things like fuel and other commodities back in 1990.
It’s kind of crazy if you ask me. Do the people that put out these “official” numbers not put gas in their cars or buy groceries? How can they in clear conscience proclaim that inflation is only 2.6% when in actuality closer to 8% (according to organizations like the American Institute for Economic Research and ShadowStats which continue to use the original CPI basket of goods).
Okay, so back to my example. Let’s say you have $10,000 sitting in your bank savings account. 10 years from now that $10,000 will be worth less than $5,000 in purchasing power. That means if today you can buy $10,000 worth of groceries, clothes, stereos whatever, in 10 years that same money will only buy half as much stuff. Scary right?
Not knowing how to beat inflation is why guys like Robert Kiyosaki call savers losers. Not because you’re a loser for wanting to put aside some of your heard earned money, but because if you don’t find a way to beat inflation and grow that money, it loses value every day.
How To Beat Inflation – It’s Not By Investing
Here’s why Wall Street’s claims that they know how to beat inflation is flawed. Yes, it’s entirely possible to beat inflation by investing in stocks and mutual funds and other instruments available to you in the financial world. The problem is, that no-one invests all of their money. According to recent statistics people today are saving less than 5% of their income.
So if you’re one of the fortunate ones who is actually able to invest your funds and achieve better than average market gains, you absolutely can beat inflation – WITH 5% OF YOUR MONEY. That means the other 95% isn’t working for you like it should be.
If you’re only able to invest 5% of your money, your chances of beating inflation and reaching financial freedom are slim to none. The 40 hour work week simply doesn’t produce enough income to create the freedom lifestyle.
How To Beat Inflation – You Have 2 Options
If you really want to know how to beat inflation, you really have 2 options.
- Increase the amount your have to invest
- Increase your income
Option #1 is really saying, if your income is steady, you need to find a way to cut your expenses so you can invest more. For most people that are living paycheck to paycheck as it is, this option doesn’t offer much hope.
Option #2 is where many people create great wealth. Even if you’re employed, you can find ways to become more valueable to your employer and compell them to raise your wage and salary. Just remember, you reap what you sow, meaning you first have to add value to the company before expecting to be compensated for your efforts.
Think about and do everything you can to find ways to make your employer more profitable. Once you do that, you’ll become indespensable to your company, and your income will rise accordingly.
If for whatever reason it’s not possible to raise your working income, then it’s time for you to find other ways to create income. The best way I can think of is by becoming entrepreneurial. Look for ways to solve other people’s problems.
In essence that’s what being an entreprenuer means. Finding solutions to existing problems.
The Best Way To Beat Inflation Is To Grow Your Income Faster Than The Rate Of Inflation
That 3% per year raise you get isn’t going to get the job done if it doesn’t even keep up with the rate of inflation. On paper, you’re making more each year, but in reality you’re falling further and further behind every year.
How To Beat Inflation Working From Home
One of the best ways to increase your income and stay ahead of inflation in today’s economy is having an online business. They’re inexpensive to start, are simple to operate, and put you in front of a global audience with very little effort.
Of course, there are thousands of “get rich quick online” offers out there, but what you really need to find is a proven system that works, and works for people from all walks of life, with all levels of experience, not just the techie types who can program a computer in their sleep.
It took me a lot of trial and error to find such a system, but am I ever grateful that I did, and it’s only $25 to get started.
If you want to discover how to beat inflation by having your own online business that allows you to work from anywhere, whenever you choose, then click this link.
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