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s and have little left to save and invest.Today, if you earn $100,000 income, your purchasing power will be less than it was a few years ago. You likely cannot afford a house today (particularly in the metropolitan cities) and even if you can afford one, you will end up incurring debt to keep up with your expenses.In simple terms, a$ 100,000 income a year ago with a 5% annual inflation is only worth $95,000 today. And if you consider the fact that tax rate will increase with time, you can now see why inflation will quickly become a significant obstacle to building sustainable wealth.<blockquote id="0cee">“The natural tendency of the state is inflation.” — Murray Rothbard</blockquote>For those that understand world economy at a deeper level, you know that inflation will never go away. In fact, the Canadian government and other governments around the world intentionally create inflation with policies. They need inflation to deal with the rising debt crisis.To provide a bit of insight, the global debt of the world adds up to$ 255 trillion. This amount is over three times world GDP, this ratio is even worse if you look at countries like the United States, Japan and some European countries. This debt level will exponentially escalate as governments around the world are dealing with the ongoing health pandemic.An important question to consider is: who will pay all of this debt? The reality is that these debts will never be repaid as they’ve grown to levels that is now unmanageable. As a result, currencies will continue to devalue, allowing this debt to be wiped away via inflation.Eventually, with this trend, we will get to a point w

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here countries will be forced to go bankrupt and our dollar will devalue to a point where we only get back pennies on the dollar.<blockquote id="6cc2">“Inflation is always and everywhere a monetary phenomenon in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output.” — Milton Friedman</blockquote>To the regular taxpayers, this may seem unlikely but to the tax-smart individuals, they expect this and this will inform decisions on planning strategies to invest wisely and to protect wealth.So, what can you do to protect yourself? What can you do to fight this imminent inflation? Here are a few suggestions:<ul><li>Invest in real estate — it is a great hedge for inflation.</li><li>Invest in precious metals like gold and silver — history suggests that these metals hold their values when everything else crumbles.</li><li>Invest in yourself — arm yourself with knowledge that no one can take away.</li><li>Invest in your precious relationships — at the end of the day, we are social animals that rely on one another. To minimize anxiety, depression and other metal problems, lean in on your relationships.</li><li>Invest in your spirituality — whatever this look like for you, know that we live and exist for something bigger than ourselves.</li></ul><blockquote id="46fd">“Inflation is like sin; every government denounces it and every government practices it.” — Frederick Leith-Ross</blockquote><h1 id="c132">And before you go…</h1>If you like this article, click the👏 below so other people can read and enjoy it here on Medium. Feel free to also share link to your friends outside of Medium.</article></body>

The Silent Killer — Inflation

In my upcoming eBook, I examine 4 obstacles to building and accelerating your wealth. Inflation is one of them.

“Inflation is taxation without legislation.” — Milton Friedman

There is some element of truth to Friedman’s definition of inflation, but what really is inflation?

Inflation is the rate at which the general level of prices for goods and services is rising.

In my upcoming eBook, I refer to inflation as the silent killer as we rarely see it. While most people are familiar with inflation, we often underestimate the powerful impact it has on our ability to grow our wealth and eventually achieve financial freedom.

Ironically, we often think of financial freedom in terms of dollar value rather than in terms of the purchasing power of our dollars (the amount of goods and services you can buy). If you’re unable to acquire what you need when you need it, then you’re not necessarily financially free.

“Invest in inflation. It’s the only thing going up.” — Will Rogers

So, what’s the big deal about inflation, and why should we care?

If you had a $100,000 income 5 years ago, you could probably afford a decent starter home, take care of your expenses and have little left to save and invest.

Today, if you earn $100,000 income, your purchasing power will be less than it was a few years ago. You likely cannot afford a house today (particularly in the metropolitan cities) and even if you can afford one, you will end up incurring debt to keep up with your expenses.

In simple terms, a $100,000 income a year ago with a 5% annual inflation is only worth $95,000 today. And if you consider the fact that tax rate will increase with time, you can now see why inflation will quickly become a significant obstacle to building sustainable wealth.

“The natural tendency of the state is inflation.” — Murray Rothbard

For those that understand world economy at a deeper level, you know that inflation will never go away. In fact, the Canadian government and other governments around the world intentionally create inflation with policies. They need inflation to deal with the rising debt crisis.

To provide a bit of insight, the global debt of the world adds up to $255 trillion. This amount is over three times world GDP, this ratio is even worse if you look at countries like the United States, Japan and some European countries. This debt level will exponentially escalate as governments around the world are dealing with the ongoing health pandemic.

An important question to consider is: who will pay all of this debt? The reality is that these debts will never be repaid as they’ve grown to levels that is now unmanageable. As a result, currencies will continue to devalue, allowing this debt to be wiped away via inflation.

Eventually, with this trend, we will get to a point where countries will be forced to go bankrupt and our dollar will devalue to a point where we only get back pennies on the dollar.

“Inflation is always and everywhere a monetary phenomenon in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output.” — Milton Friedman

To the regular taxpayers, this may seem unlikely but to the tax-smart individuals, they expect this and this will inform decisions on planning strategies to invest wisely and to protect wealth.

So, what can you do to protect yourself? What can you do to fight this imminent inflation? Here are a few suggestions:

Invest in real estate — it is a great hedge for inflation.
Invest in precious metals like gold and silver — history suggests that these metals hold their values when everything else crumbles.
Invest in yourself — arm yourself with knowledge that no one can take away.
Invest in your precious relationships — at the end of the day, we are social animals that rely on one another. To minimize anxiety, depression and other metal problems, lean in on your relationships.
Invest in your spirituality — whatever this look like for you, know that we live and exist for something bigger than ourselves.

“Inflation is like sin; every government denounces it and every government practices it.” — Frederick Leith-Ross

And before you go…

If you like this article, click the👏 below so other people can read and enjoy it here on Medium. Feel free to also share link to your friends outside of Medium.