How To Protect Yourself Against The Rising Cost Of Everything

You are feeling it, I’m feeling it. Everything is going up in price and it hurts your purchasing power.

This is what happens when $7 trillion is printed and dumped into the system, it pushes everything up.

It’s called Financial Engineering and its done to prop up prices and keep our economy from collapsing.

It also creates a ‘wealth effect’ where you see your portfolio and home prices rise…

But it also makes everything else go up: groceries, gas, services.  

If your income, salary or cashflow isn’t growing more than 10% per year, you’re actually getting poorer because inflation will erode what you are making.

I’m trying to get rid of cash because it just erodes from inflation if it sits there. 

All other assets aren’t any more attractive after being in a bull market for over a decade (aka bubble). 

Gold and Crypto were supposed to be the things to invest in to protect you from ‘fiat currency’ (fake money) but they are losing value against the dollar as well (they should be at least rising like everything else). 

So what do you invest in that will not only keep pace with inflation but allow your finances to GROW and not just keep pace?  

Warren Buffett called it in 2008: “The best investment you can make is in yourself”. 

He repeated that recently in an interview with CNBC:  

“Inflation is taking a toll on the American economy, with everything from gas to groceries seeing a steep price increase. 

There is little that individuals can do to avoid inflation at the cash register, but Berkshire Hathaway CEO and legendary investor Warren Buffett says that people can make certain moves to protect against its effects. 

Speaking at the 2022 Berkshire Hathaway annual shareholders meeting, Buffett repeated his long-held advice that one of the strongest protections against inflation is sharpening your skills and working to be at the top of your field. 

“The best thing you can do is to be exceptionally good at something,” the 91-year-old said Saturday. Buffett said that ”people are going to give you some of what they produce in exchange for what you deliver.” 

Buffett added that skills, unlike currency, are inflation-proof. If you have a skill that is in demand, it will remain in demand no matter what the dollar is worth. 

“Whatever abilities you have can’t be taken away from you. They can’t actually be inflated away from you,” he said. “The best investment by far is anything that develops yourself, and it’s not taxed at all.” 

How I have been protecting myself: 

In 2020 COVID gave us a warning shot across the bow to get with a back up plan as so many businesses were unpredictably wiped out. So not only is it knowledge but building your personal brand and creating a source of traffic (or multiple sources of traffic) such as LinkedIn, a podcast or YouTube Channel.

Once you have traffic and a personal brand, you can learn how to monetize your knowledge like I have and create a digital course, mastermind group, one on one coaching, etc.

Are you ready to start building your knowledge, traffic and brand? Send me back a message On LinkedIn or Instagram and let me know what ideas you have brewing!

If you haven't started yesterday, start today by investing in your knowledge, building out your personal brand and creating sources of traffic and you can turn that into an offer at any time!

Check out the latest Mindset Hackers podcast on Apple Podcasts and Spotify where I talk more in depth about this. Also make sure to catch Thursday’s episode with Neuroscientist and CEO of the startup Dreamfuel as we talk about our number one way to tap into the feeling of Abundance!

 

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