How To Protect Yourself Against Inflation

As inflation continues to hit record Highs around the world more and more People are trying to find ways to keep Up with the rising costs of living This is much easier said than done but It is possible and it’s safe to say that The existing resources about this Subject have come up short That’s why today i’m going to explain Exactly how to beat inflation no matter Who you are or where you are so that you Can protect your hard-earned purchasing Power [Music] Before we talk about price i need to Break the ice i am not a financial Advisor don’t make me say it twice I’m just an educator and entertainer i Hope that will suffice Please contact a financial advisor if Your portfolio has been sliced Now if this is your first time tuning in My name is guy and crypto is what i Bring my mission is to create the Highest quality crypto content the Internet can ping Coins tokens news and reviews and many Other such things If you want to become a crypto queen or King subscribe to the channel and give That notification bell a ding Now that you know how i swing let’s see How you can protect your bling Now i want to start with an overview of

Inflation just so we’re all on the same Page For the purposes of this video i’ll be Defining inflation as the cost of living Rising faster than two percent per year Which is the inflation rate that most Central banks around the world target The obvious question then is what is Meant by cost of living and the short Answer is the consumer price index or Cpi For those unfamiliar most countries Measure cost of living using the cpi Which consists of the prices of various Goods and services that the average Person spends their money on According to cpi data inflation in the United kingdom north america south America europe and africa is the highest It’s been in decades In some countries it’s the highest it’s Ever been and it continues to rise If you watched our video about the cpi However you’ll know that these official Inflation statistics don’t always tell The full story It seems that most governments have Changed how cpi is measured over the Years so that inflation doesn’t look as Bad as it actually is Case in point inflation in the united States is almost 20 When measured using the 1980s cpi This is more than double the 9.1 percent

Inflation rate being reported by the Current cpi measure which was apparently Modified in january this year As such it’s safe to assume that the Inflation rate in your region is much Higher than what’s being reported It’s also safe to assume that even if The official rate is correct it doesn’t Necessarily mean that you’re feeling it The same way and i bet most of you Aren’t This brings me to the first step to Beating inflation and that’s to measure How inflation is affecting you Personally this will give you the Information you need to make the changes Required to keep up The easiest way to do this is to look Over your credit or debit card Statements over the last 12 to 24 months And see how much your monthly expenses Have gone up during that time if you Don’t have a credit or debit card then i Sincerely hope you’ve been keeping track Of your expenses manually Pro tip print out these statements or Expenses and put them on the table or The floor or at least write the totals Down on paper because switching through Different statements and expenses on a Computer can get confusing very quickly Unless you’re an excel pro in which case Have at it Once you’ve got your statements in order

Go through each one and see if there are Any anomalies in your expenses For example if you went to your parents House for a week or weekend your Expenses for that month might be lower Because you got free food and spent less On energy and petrol You can choose to keep these anomalies In the calculation if you think they’re Likely to repeat in the future but i Reckon it’s best to calculate everything Assuming that you’ll be at home every Month buying all your food flushing the Toilet a lot because you’re using too Much toilet paper etc Once you’re happy with what you’ve got Compare how much you spent 12 and 24 Months ago to the most recent month Chances are you’ll notice that you’ve Been paying a lot more for your regular Monthly expenses and you can consider The percentage difference to be your Personalized inflation rate If you want to go the extra mile you can Pull up some graph paper and plot your Monthly expenses with the currency value On the left side and the months on the Bottom or you know put excel to work on It Drawing this out should make it possible To project how much your personal cost Of living is likely to increase going Forward This ties into the second step to

Beating inflation and that’s to figure Out which specific expenses are causing Your personal cost of living to increase Over time These should be easy to identify if you Have credit or debit card statements or A detailed record of your previous Expenses Chances are the answer will be food and Energy as along with money printing by Central banks these appear to be the Most common causes of inflation around The world right now Logically if your food-related expenses Such as groceries and restaurant bills Have been rising rapidly over the last Few months then you’re probably Experiencing food price inflation Note that these food expenses must be Abnormally higher than other expenses to Make this call If you’re confident food inflation is What’s affecting you then take a second To read up on the specific circumstances That are leading to high food costs in Your region Chances are it’ll be supply chain issues Or shortages related to the ongoing war In ukraine it could also be all those Unprecedented disruptions to food Processing facilities more about that in The description Anyways if your energy related expenses Such as fuel and utility bills have been

Rising rapidly over the last few months Then you’re probably experiencing energy Inflation Note that energy is used for everything So the change in energy related expenses Must be much higher to make this call If energy inflation is what’s affecting You then take a second to read up on the Specific circumstances that are leading To high energy costs in your region Chances are there’ll be shortages Related to the ongoing war in ukraine or A lack of production resulting from Underinvestment in the energy sector you Can thank blackrock and the esg crew for That one more about esg in the Description now if all your expenses are Rising at roughly the same rate then You’re probably experiencing inflation Caused by money printing Put differently inflation caused by the Demand side of the inflation equation Rather than the supply side of the Inflation equation This relates to the third step to Beating inflation and that’s to look at The supply and demand sides of your Personal expenses In other words where can you cut back on Costs and where can you increase your Income Starting with cost cutting one of the Easiest ways is to buy everything you Need in bulk this is actually why many

Investors argue that companies like Costco and walmart are good investments In inflationary environments I’m not convinced due to inflated stock Valuations but it makes sense in theory The second way to cut costs is to buy What you need in advance especially if The personal expenses projection you Plotted earlier is looking like the Federal reserve’s balance sheet After all if you know the things you Need are going to cost more in the Future it makes sense to buy more today The third way to cut costs is to find a Way to decrease your tax burden this Could involve setting up a company so That you can write off certain expenses Legally of course The fourth way to cut costs is to reduce Unnecessary spending and you can start By cancelling all the subscriptions to The streaming services that i bet you Barely use You may also want to consider changing Your phone plan if you’re not getting The best bang for your buck you can also Make coffee at home instead of buying it From some overpriced hipster place and Cook your own food instead of eating out All the time Better yet switch to drinking tea or Drink only water caffeine is a tough one To shift though Now i know what you’re thinking guy

You’d better not tell me to sell my car And take the bus like all those world Economic forum affiliated media outlets Do Quite the contrary see if you can find Folks you know who live near you and Commute to the same area you do using The bus and offer to drive them to or From that area every day if they can Cover your petrol it’s a brilliant idea That the mainstream media outlets seem To have missed i wonder why Now in terms of increasing your income Doing a side hustle where you set your Schedule like uber or lyft could be an Option if you enjoy driving if your car Is in good condition and you drive a lot You might find a local business that Would be willing to advertise itself on Your car If you like to play music see if you can Give lessons from time to time if you Like to listen to music see if you can Be the dj at some places or parties if You like to party see if you can get Involved in organizing parties The opportunities are seriously endless If you look for them heck there are even Some platforms that let you sell your Own home-cooked food if you love to cook Chances are there are some ways you can Monetize your hobbies and though it will Obviously take some effort to do so you Might eventually find yourself doing

What you love for a living just like me Now the second way to increase your Income is something else that’s been Overlooked and that’s to see if you can Get a job in the industry that’s Experiencing the most inflation in your Region ideally the specific sector That’s squeezing your bank account the Most If it’s food inflation working at a Restaurant could be worth it that’s Because given the monumental shortages Of labor that we’re seeing some Restaurants are paying top dollar to get Some helping hands And pro tip see if you can get a job at A grocery store they often give employee Discounts at least in north america and Europe Yes they can often pay very little but If you can land a limited part-time job With one to two shifts on evenings or Weekends it may well be worth the 10 to 20 discount some of these places give If it’s energy inflation working for an Oil gas or other energy company will Likely be worth it even if you’re not Given discounts simply because you’ll Likely learn how to be more efficient With your own energy use once you see How it all works behind the scenes in Your area The third way to increase your income is To find a higher paying job which can be

Surprisingly easier to do if you’re Willing to relocate and especially easy To do if you’re willing to level up your Skills as a matter of fact warren Buffett famously said that the single Best hedge against inflation is to Invest in yourself and your skills and i Reckon he’s onto something there On a related note if you want to try and Get a job in cryptocurrency you can Check out our video about how to do that Using the link in the description Now the final way to increase your Income is another novel approach and That’s to look around you and see what Things you can sell and what space you Can rent Chances are you’ve no shortage of Clutter that could fetch some cash and I’m sure some of you will have an extra Space that you can rent to others for Storage such as a garage shed or even Basement If you want to take it to the next level You could make your garage shed or Basement livable enough to rent out as An extra room on websites like airbnb If the price is right you could make a Pretty penny The fourth step to beating inflation is To invest in assets that are likely to Keep up with inflation or at least be Less affected by it This is where things get complicated

Because investing in real estate Emerging markets commodities including Gold or inflation-protected bonds like Many media outlets are saying probably Isn’t going to work and is incredibly Risky This is simply because of how central Banks around the world are responding to Inflation most notably the federal Reserve which has been aggressively Increasing interest rates to fight Inflation As i’ve mentioned many times before Raising interest rates makes borrowing More expensive and saving more Attractive This causes the money supply to contract Which translates to a drop in demand Which by extension leads to a fall in Prices As i mentioned earlier however not all The factors driving inflation are Related to demand which is why some are Skeptical that the fed will be able to Fight inflation by attacking the demand Side of the equation but that’s a topic For another time The fact of the matter is that the fed Is raising rates to combat inflation and This is doing much more than causing a Drop in consumer demand in the united States although real estate is touted as The number one inflation hedge the Housing market is the most sensitive to

Interest rate increases and we’re Starting to see the first cracks form on That front in the united states and Elsewhere While it’s true that you can rent out Any real estate you buy as a source of Passive income a near double-digit Mortgage rate combined with a near Double-digit inflation rate is a recipe For disaster To my mind it makes no sense to take on Debt of any kind when interest rates are Rising Speaking of which the fed’s rate hikes Are also doing serious damage to Developing countries especially those With large amounts of dollar denominated Debt This is why i straight up don’t Understand why some institutions are Recommending investing in emerging Economies to fight inflation no just No The same goes for commodities you’d Think that investing in oil gas and gold Would be a no-brainer but when the fed Raises rates it causes the us dollar to Rise and this eventually causes Commodity prices to crash To be fair there is a bullish case to be Made for commodities in the long term After all gold has also held up much Better than most other investments the Thing is that gold is going to keep

Crashing so long as the fed continues to Raise rates and that’s likely to Continue for the foreseeable future Finally we have treasury Inflation-protected securities or tips Which are of course issued by the united States department of the treasury Now while these may be a relatively Attractive way to hedge inflation there Are a few problems with them firstly They are not easy to invest in for People outside of the united states And secondly the interest rates on tips And other related instruments are Nowhere close to the official inflation Statistics much less the unofficial Inflation statistics and almost Certainly not your personal inflation Statistics In investment terms the real yield on These assets is likely to be negative I.e not actually keeping up with Inflation which is obviously the case For just about every asset out there Right now So what can you invest in to protect Your purchasing power Well if you live outside the united States the answer is unfortunately us Dollar stable coins preferably regulated Ones like usdc and busd That’s simply because every other Currency is collapsing in value against The dollar and as we’ve established this

Is likely to continue so long as the fed Continues to raise rates For what it’s worth there are ways of Earning yield on regulated stable coins Namely on centralized crypto platforms And decentralized finance protocols via Lending and liquidity provision for coin Pairs The interest rates aren’t much but They’re better than nothing However given how much chaos has been Happening on centralized crypto Platforms you might want to stick to the Second method of earning yield on stable Coins but be sure to do your research And make sure your stablecoin holdings Are diversified because the last thing You want is for circle or tether to Freeze your savings Anywho the final step to beating Inflation is to keep the macro context In mind Inflation is going to come down Eventually and interest rates will Respond in kind That’s simply because the issues on the Supply and demand sides of the equation Are being actively addressed as you Watch this video It’s anyone’s guess as to when inflation Will come down but history suggests that Periods of high inflation last for about Two to three years at a time at least in The united states

Not surprisingly this is consistent with The length of fed interest rate cycles Which likewise last for two to three Years at a time The scary thing is that what has Historically brought down inflation Wasn’t the fed’s rate hikes but rather The recessions these rate hikes caused As the saying goes history doesn’t Repeat but it does rhyme and that means We’re likely to see a similar economic Downturn in the coming months this is Yet another reason why the advice being Given by the mainstream media about how To protect against inflation is so bad It’s probable that most assets will Plummet when a recession hits including Those that are supposed to be inflation Hedges because well inflation probably Won’t be a problem The caveat to this is that not all Countries will see inflation come and go At the same pace in some places Inflation might fade faster namely Nations that are already in a strong Deflationary trend due to things like Demographics the easiest example being Japan Conversely countries that face serious Structural issues related to energy such As those in europe could find themselves Experiencing inflation for a lot longer Even if a recession sets in This is why i mentioned earlier to check

What exactly is causing the inflation in Your region you can find out how europe Ended up in this situation using the Link in the description Anywho another thing to keep in mind is That the world appears to be in the Process of deglobalizing meaning that More and more production will happen at Home or at least closer to home The consensus seems to be that this will Cause the prices of certain goods and Services to stay high indefinitely Now if you’re wondering where crypto Fits into all of this the answer is that It doesn’t btc has proven itself to be An inflation hedge in the long term but It’s not going to be of much help in the Short term while the fed’s rate hikes Are causing investors to cash out of Risk on assets to pay back debts It’s also unclear how crypto will handle A recession but given crypto’s high Correlation with tech stocks it’s Reasonable to assume that it probably Won’t be pretty The silver lining to this situation is That the fed will inevitably reverse Course as it always does and this will Eventually cause stocks cryptocurrencies And potentially commodities to rally Fulfilling their roles as long-term Inflation hedges All you must do is survive the high Inflation between now and then and i

Hope that the info in this video will Help you do that oh and if you’re Wondering how long the crypto bear Market could last you can find out using The link in the description And that’s all for today’s video about How to beat inflation if you have any Tips on how to beat inflation feel free To drop a comment down below if you Found this information useful smash that Like button if you plan on coming back For more valuable info subscribe to the Channel and ping that notification bell In the meantime you can check out coin Bureau clips for behind the scenes and Original flicks and tune in to the coin Bureau podcast to fall down crypto Rabbit holes with myself and mad mike You can also follow me on twitter tiktok And instagram and join my telegram for Daily crypto updates if you want to know What cryptos i hold as part of my Portfolio subscribe to my weekly Newsletter if you want to support the Channel head on over to the coin bureau Merch store and check out our new crypto Designs i know you’ll find something you Like You can find your way to all these Resources using the links in the Description thank you all so much for Watching and i will see you in the next One this is guy bidding you Goodbye

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