How Inflation Can Make You Rich

Send us Fan MailSeason 2 Episode 4 of Not Me, But You! podcast. Referral Link to I Trust Capital dot com if you want to buy/sell cryptocurrency or gold/silver INSIDE of an IRA or Roth IRA. Use link https://itrustcapital.com/?referral_id=AAWC4U&utm_source=RAFHow can inflation make me rich? I thought inflation was a bad thing! Yes inflation is generally not good. We all have a pile of money somewhere. Inflation reduces the "purchasing power" of our pile of money over time. But inflation can cause the value of assets we hold to go UP over time. That is how we can benefit from inflation. But in order to get the benefit, you must own/hold assets. Simply saving money in a bank account won't do that for you. What causes inflation? Governments printing more fiat currency. Wealth people know governments will do this so they buy assets! They buy assets that will increase in value over time and/or bring them cash flow on a schedule (monthly or every 3 months). Utilize your 403B/401K at your job to get "free money" from your employer. The "free money" is the MATCH. Most employers will match a small percentage of what YOU contribute to the 403B/401K each month. Typically over 5 years, there is a "vesting schedule" where you gain access to a greater amount of the money that your employer has contributed. The money that YOU contribute to the 403B/401K you always have access to and can take 100% of the money that you contribute with you if you ever switch jobs/leave the job(retire). Inflation increases when governments print more money. This causes prices of food/energy to rise.  If my groceries and gasoline I put in my care go up over time, then my expense simply to live the same life style goes up over time too. How does inflation affect a pile of money I have saved, say in a bank account? Great question. Think of your pile of money sitting a bank account over time (earning a very low interest rate) is like an ice sculpture that is slowly melting over time. The ice sculpture may be in a refrigerated environment. But the temperature isn't cold enough to stop the ice form melting. So the ice sculpture melts, gets smaller and eventually disappears. The "melting" of your pile of money in the bank, is your "purchasing power" melting away over time. How do you counteract this? Invest in an asses that matches/beats the rate of inflation! Inflation causes you to spend more dollars, over time, to buy the same stuff you used to buy for less.Buy assets for two reason: 1) increases your pile of money(brings you more money on a schedule). Remember inflation?  2) Wealthy people buy assets to match or beat the TRUE rate of inflation. See Truflation dot com website. Examples of assets: owning real estate, owning shares of stock(growth and/or dividend), owning cryptocurrency(think Bitcoin). The value of your home or stock shares goes UP over time. This is inflation helping you. Owing shares of dividend stocks is the Ultimate Passive Income. You buy shares once. Money flows to you on a schedule (monthly/every 3 months). Who is Blackrock?  I suggest you Google them. If you think investing in Bitcoin is "too risky" or a waste of your time, then research Blackrock. They have something very large number like 14 Trillion dollars that they manage. Blackrock has created a Bitcoin ETF that invests in Bitcoin. We may want to check out "this thing called Bitcoin then!" Email me at WAYPATODAY@ gmail.com I'm not a financial advisor. This podcast is for education/entertainment purposes only. You will need to do your own research and accept responsibility for the results of any money you choose to invest. I love using Schwab.com to buy/sell stocks/ETF's/closed end funds/options. Schwab has a very user friendly app/website and their customer service is excellent. I can easily get to speak to a human being whenever I have questions.