Inflation – Are You Prepared?

Just recently I sat down with my CPA, Dan Marsh, from Senger, Marsh, and Associates and we got into an interesting discussion about the potential affects of inflation. It’s sad to say that so many people (myself included at times) come from a place of not preparing themselves for the future simply because they are engulfed by their today. Simple example: the housing crisis we are in today. It has always been the American dream to buy your own house but for many people, they are living outside of their means and/or are just not in a position to makes such big investment. “But we can make it work, so let’s do it.” It’s been that mentality that has made it very difficult for people to live into your future because the future is often times a bit unpredictable.

The same is true with inflation. People are starting to discuss it, others are being watchful of it, but the majority of people have no idea the affect that it’s going to have on the wealth of this country and us as individuals. Inflation, by definition means, “the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.” PURCHASING POWER IS FALLING. Those are the terms that we as Americans, we as individuals, should be very aware of. And in all honesty, it should make us shake in our own boots. Why? Because the money that you’ve worked so hard to make, to create, to grow, is now in jeopardy of actually losing it’s buying power, which means you are actually going to have to spend more to buy less.

That goes for your investments as well. Many of the avenues of money placement is not necessarily going to be the best “holding tank” for your money in the future. Granted, our money systems have always been somewhat volatile, but when you are actually positioning yourself to lose control of your own dollar amount, that is what I call volatile! And I see it as being one of the most debilitating things you as a hard working individual could ever experience. Whether you are a successful entrepreneur, looking ahead to retirement, actually participating in retirement, or are just starting out on your own financial course, inflation can affect us all. It’s time to make a change!

So what about the idea of keeping your money on the sidelines? That’s a question I receive on a regular basis… I will communicate my point once again in saying that because of the inflation, our dollar’s value is decreasing and so is our purchasing power so if you intend to “keep your money on the sidelines” to avoid the devastation of decrease, think again. Inflation does not work that way. And by trying to just play it safe, you are actually hurting your own financial being. So the concept of keeping your money on the sideline is like you jumping into the tank with all the “fish” who are being circled by massive sharks. It’s time for a change!

The first thing I would do to equip you to not be one of the ones reaping the devastation of the incoming inflation is to be active in pursuing information. Instead of playing on the defensive side, be aggressive, pursue knowledge, wisdom, and information. Study everything that you can, begin to learn what’s working and what’s not, and do the best you can to align yourself with people who actually have results in their life that you are looking for. Financial results will prove to you that they know their stuff.

The second piece of advise comes to you in 3 easy to remember words: Hard, Tangible, Assets. Those are the assets you can see, feel, touch, and control. Assets such as real estate, land, gold, and silver, to name a few. These are assets that will not lose your purchasing power because they are actually tangible assets that when purchased appropriately will continue to appreciate and make you money while everyone else is losing their position in doing so. These tangible assets are some of the best avenues for you to look into. It is one of the best times to buy real estate, interest rates are at a record low, sellers are needing to sell versus wanting to sell, silver and gold are increasing in value, and once again, history is repeating itself proving that the dollar does not have as much “staying power” as real, raw assets.

Times are changing. What once worked does not always work anymore. Do not resist the flow of our economy. Increase while others are decreasing.

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