Hey there, this is Roopesh.…:)
A 2% inflation rate may not seem like something to worry about. But, if you let it build up over the years, it can be worrisome. Let me explain why…
If you were to have a constant 2% inflation rate over a 10-year time frame, that would mean that your purchasing power is slashed by 20%.
So, what you can purchase with $100 at present would be reduced to $80 in 10 years. Your money might look the same, feel the same, but it will afford you less…
What does this mean?
Well, in the years that come, your money gets even more reduced in terms of value. That’s why if your money is stashed in a bank, it is losing buying power.
Invest Smartly To Preserve Purchasing Power
So, if saving money is bad, then what’s the alternative?
The answer: INVEST
Two of the best ‘vehicles’ you can invest in are property and stocks.
Over the years, stocks have shown to yield a return of 7%
Though it can be a complicated arena to get involved with, the property market can return 4% to 10%. (depending on the location of the investment)
But, we all are different. And having said that, stocks and property may not be everyone’s cup of tea.
There is a 3rd option to beat the Inflation Nemesis…
Using Your Business To Escape The Hidden Tax Of Inflation
The 3rd option is to invest in yourself. Learn the skills and knowledge to build an online business.
The advantage of having an online business are :
- your business grows as the economy grows
- you set your own wages
- you control your time
- your income is drectly proportional to your efforts(more effort – more income, not like a job where your income is fixed no matter how hard you work)
Having your own online business means you get to play the game, instead of just watching as a spectator…
As inflation goes up, the price of commodities goes up. But with an online business that sells those commodities, you make more money…
As you make more money, you can invest it back into your business, and scale it(use more advertising platforms, outsource work, etc). You can come back and invest in other assets like property and stocks…..
Do Not Fall Behind, Make It Work For You, Rather Than It Work Against You!
You do not have to conform and accept things the way they are.
Yes, inflation is part of the money system.
But you do not have to have it a struggle in your life…..
Start taking control and build your own online business. Create your own Wealth.
Feel free to leave comments below. Would love to hear from you.