In today’s uncertain world, there’s a lot of anxiety and confusion about inflation. There are usually two main reasons for inflation: government spending and government monetary policy. Because money floods the system, inflation can initially evoke a euphoric feeling of having more. Eventually, however, the money starts to disappear, the price of goods and services continues to rise and the euphoria crashes. So, how can you offset inflation and continue to live the good life? Here’s some inflation-busting steps you can take to protect yourself, your business and your assets now and into the future:
Invest in your business
When you research a company to purchase stock, you look for an efficient firm with strong and honest leadership. If you think about it, that description probably already sums up your own business, so why not invest in yourself first? Now could be the perfect time to take more territory or expand your market share. Start investing in coaching, marketing and your clients and your business will grow and beat inflation.
Invest in real estate
Right now, if someone has $10 million in the bank, by the end of the year that sum will have lost 7% of its value, or $700,000. If that same $10 million is used to invest in real estate, by the end of the year the investment could have increased by 20%! Real estate is inflation’s great hedge, which is why the market is hot and will continue to be for some time. The most important thing to remember when buying property is to have a solid down-payment in case the market fluctuates. As long as you put down 20%, you’ll be in good shape no matter what happens.
Invest in solid companies that pay dividends
John D. Rockefeller once said, “Do you know the only thing that gives me pleasure? It’s to see my dividends coming in.” There are many vehicles where you can buy stock, receive dividends and pay minimal tax as they continue to grow. To make this work effectively, it’s vital to do your research, get solid advice on tax-deferred strategies and continue to educate yourself independently about all the different aspects of monetary policy.
If you want to live the good life, you have to cut through all the noise about inflation and understand the truth. Instead of panicking, get busy investing in yourself, your business and your assets.