Inflation is coming for you.
run for the hills
Inflation is the sustained, broad-based rise in the average price level of goods and services in an economy over time. As prices increase, each unit of currency buys fewer goods and services, meaning the purchasing power of money declines. Central banks and economists typically track inflation using price-index measures such as the Consumer Price Index (CPI) or the Personal Consumption Expenditures (PCE) index.”
- ChatGPT
Fancy uh?
I don’t know about you, but I’m just a good ole’ boy from the corn fields, but I do know one thing … when I go to the county fair and rides cost $10 that used to cost $2, a guy tends to sit up and take notice.
When I was a young man and I would listen to my Econ 101 teacher pontificate about inflation, or some screaming baboon on CNBC talk about inflation, my eyes would glaze over, and I would start daydreaming about the Great Depression.
Seems like old ‘feller talk.
Until you become an old ‘feller yourself and start telling your kids, “Now back in my day that thing used to cost 25 cents and a handshake.”
I mean, look at this bad boy.
I have always been one to ignore inflation myself, for the most part. Usually, I keep the attitude that there are about zero things I can do about inflation, besides just running my finances well and making sure I’m moving up the “ladder” of income.
If we are to believe the charts and the data, it would seem that wages haven’t been that stagnant during the same period.
I mean, all the talking heads are always giving us advice and tips like inflation will eat us alive if we don’t pay attention, and I have never paid attention… and here I am alive and well.
So maybe we just ignore the inflation worries and chalk it off to old ‘fellers be old ‘fellers, cause they have nothing better to do.
The only standard “hedge against inflation” that I would agree with would be real estate.
I do have the odd silver and gold bar and coins rattling around in my safe box, but most of those were presents from my doomsday-obsessed family at Christmas. I do take them out every once in a while and pet them like Gollum and that Ring of Power.
Going with good ole’ human capital.
I think I’m just going to go with the most obvious route when it comes to inflation, the one that has served me well, low, these many years. Human capital, the human spirit, capitalism, whatever.
If you stay in the same job for years on end, never moving forward finanically, yes, you are going to feel the sting of inflation. Your employer is only going go give you minimal raises and token coins.
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You must at some point grab life by the ol’ horns and like Jacob, wrestle with the Lord till you get what you desire. Rare is it in life that the golden goose simply walks along and decides to drop something in your lap.
Like it or not, in the world we live in, if you want something, like more money that will help you keep up with, and overcome inflation … ya gotta wipe the dust off your boots and go to work.
This my friend, is how you beat the inflation monster. Inflation is out of your control, buy all the gold bars you want, I don’t think it will help. Just work hard, increase your income from year to year and you will be all right.
Leaving within your means, keeping a budget and knowing where you money is going, and if you are saving more than you are spending, this will be your best from when inflation gets bad and the world goes mad.