With inflation currently so HIGH – what can we do to protect ourselves against it?
One thing is for sure – keeping all our wealth in cash is NOT the way.
In fact since inflation is basically the measurement of the rate of depreciation in value of cash…
Its pretty much the precise measure of how much that cash decreases n value.
Now naturally we need to keep SOME liquid cash – maybe for an emergency fund or incase of opportunities.
But beyond that it means our cash is not working for us and therefore susceptible to devaluation.
A quote I really like about this effect is as follows…
“Remember every single pound (£) that remains unallocated is a wasted pound (£). That is because inflation is constantly robbing you of the value of your pounds. This is the equivalent to deleting the record of the time you spent to earn that pound meaning you may as well never have bothered to work for it in the first place.”
So how can we protect ourselves against inflation.
Well the obvious way is to invest in financial assets…
This of course should only be done with an appropriate financial plan.
However the other types of assets you can invest in are your skills and knowledge.
These are yours forever tax free and you can use them to make limitless cashflow.
Whatever you do just remember the quote above about the unallocated pounds…
Use it as fuel to take action.
#NOT FINANCIAL ADVICE