Have you seen fuel and food prices lately? They’re through the roof. Inflation is coming and it’s going to destroy most Americans.
In fact, that’s the opinion a lot of smart people have. Charlie Munger, Michael Burry, and Ray Dalio all fear a coming inflation wave. This is bad if you live in your home country, because it means you’re likely to get priced out of life. And it’s also bad if you live abroad, because currency conversion could destroy much of your discretionary income.
I felt this first hand when the dollar declined, and lunch in Thailand went from costing $8 to $12. Not because locals raised their rates. But entirely due to the fact that the US Dollar had lost much of it’s value against the Thai Baht.
Today’s article explains how you can deal with the threat of inflation, and even profit off it.
1. Move Somewhere Cheap And Pay Your Bills Early
Most of Asia is still closed off to the Western World. If you’re already in Thailand or Vietnam, you already know how cheap local rent has become.
If you’re in a country like the USA, you’re stuck watching the price of everything increase. Rent, housing, gas, baked beans, it’s all going up.
My advice?
Pack your bags and go to some cheap Latin American city. There are a lot of safe areas with a low cost of living. 10 seconds on Airbnb and you’ll find a lot of large, modern cities with average apartment prices under $500. Here’s an example from Brazil:
You can book three or six months upfront to enjoy a huge discount and lock-in a good price. I did this with my own rent this year and saved myself almost 50% over what I usually pay.
Now that you’re enjoying sunny South America and have zero worries about rent, it’s time to supercharge your income.
2. Start Your Own Business
Inflation mostly punishes fixed income employees. In other words, people with jobs who get paid an hourly rate or flat salary.
If prices go up 10%, it’s unlikely your boss increases your paycheck to match this.
Because of this, you need to develop your own income streams. Starting a business, even a small one with tiny profits, can help you completely beat the effects of inflation.
Here’s a laughable example. I have an article that generates $50 a week in affiliate commissions. There’s nowhere on Earth where you’re living off $200 a month. But that money can cover expenses like groceries or the electric bill.
Any extra income, even if it’s just a few hundred dollars a month, helps protect you from the dangers of inflation.
Especially when you follow the next step.
3. Buy Real Assets (The Ultimate Inflation Beater)
Leave money in the bank and it erodes over time. Inflation punishes savers, and rewards investors. Why? Because stocks, real estate, and commodities rise in value as the dollar declines.
You would make more money investing in a stable $5 gold mining stock than you would “protecting” your cash in the bank.
In fact, I recently recommended Nestle stock as an opportunity to hedge against inflation. Although there are plenty of other assets too.
If you’re new to investing, or want to learn more about building wealth through assets, check out the Sure Dividend newsletter. It’s free and contains mountains of useful advice.
Make a few smart investment decisions and you can become very rich very quickly, turning inflation into a minor inconvenience.
Final Thoughts
Inflation is a serious concern. If it goes unchecked, it will drive many Americans to the poorhouse.
You don’t need to join the destitute masses.
With a few smart plays, you can make inflation work for you.
Moving someplace cheap increases your buying power. Since Asia is closed to outsiders, a country like Brazil or Mexico could offer lots of opportunity. You can enjoy warm weather, go on dates, and take up a hobby like surfing or SCUBA diving.
Starting a business (such as affiliate marketing or self-publishing), shifts your income to overdrive.
And then rolling your earnings into cash producing assets multiplies your money at an astounding rate.