How to Protect Your Dollars From Inflation

What is inflation? - There are lots of scientific definitions of the term in economic dictionaries, but the most understandable are real-life examples. One of my Facebook friends has posted a few days ago, that the price of their favorite salad was $13 several weeks ago, but now they have to pay $25, which is almost doubling in price.

Due to COVID 19, the world economy is changing, we are at the border of massive inflation explosion unless appropriate measures are made. So, what exactly inflation is? As I already mentioned above, inflation is such a kind of condition, when you need to pay more for the same item. Or, when you can own a smaller number of items with the same amount of money. Inflation is a continuous process. Year by year, we are experiencing changes in price, which goes up, and almost never goes down.

How to fight inflation effectively?

The answer is simply real estate.

The real estate property values are constantly appreciating – From the buyer perspective, you might complain about increased prices. You may ask yourself, why you should invest your capital in something that is more expensive than it was a year ago. And the answer is the same: because after a year, your property will cost even more, in 10 years of the period its value will increase dramatically. The real estate is a brilliant exception and a great example of how property is appreciating its value instead of losing it.

You are already convinced to invest in a real estate property but you don’t have enough money for it? One possible solution is debt. The good news is that your debt is decreasing time by time.

For instance, if you have to pay $2000 per month, for 10 years of period, the one you pay in your first month and the one you pay in your last month of the 10th year, is not the same. That means, your $2000 debt is decreasing in value due to inflation, and in the end, you own the property which has the increased value.

Better income – If you are a multifamily investor and earning a rental income is your business, you are lucky as in several years, you will most likely earn even better income. Since the house price goes up, the renting price goes up as well, and despite the inflation, you are on a winning side.

To sum up, real estate is the best solution for people who love stability, comfort, and willing to have a peaceful retirement. Invest your money today, protect your dollar, and get the continuous profit for the rest of your life.