You need to and must know about Inflation.

Hello reader! I hope whatever reason brought you here leaves you filling satisfied. I'll keep this short and straight to the point as usual. 

I talked before about inflation and with the benefit of the doubt, I'll define it again. Inflation is defined in economics as a general increase in prices and a fall in money's purchasing value. To make it, even more, simpler, let me recount an incident that explains this. Five months ago, a 5kg bag of rice cost me about $11 but today, it costs me $13. This is a significant increment that clearly explains inflation. A difference of $2 might not mean a lot but put this in context and you'll realize that basically, the price of almost all goods and services increased. And if you had to buy a lot of stuff or more bags of rice, not only is the price in front of you high but the money you have in your bank's saving account has also gone down in value. 

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Why am I even blogging about this topic you might ask. I tend to meditate a lot and process things happening around me especially when I happen to be alone. When I really came face to face with living my life independently by having to worry about sorting out rent, internet, electricity, water, and other money-demanding stuff, I struggled initially. Of course, I had to constantly worry about these things and I began thinking about why all of these things had to be the way there were or are. And I realized that a big part of my life or education had this void about financial literacy. To make a long story short, I realized inflation was like a thief who had been stealing from me and you as well (my guess). 

Have I found a way to catch this thief? that's gonna be a discussion for another day but do know that I'm 100% working on it and I'll do well to share my findings here. In the meantime, I wish to let you know that most of us are struggling financially and the last thing we want is a thief taking our little away. That is why I wanted to write this piece to sound an alert to those who are not yet aware. Some of us are among the poor and middle class and are usually the hardest hit when inflation rises. The rich hardly feel a pinch no matter how bad the economy is going with record-breaking high inflation. 

You may ask me what to do about it and like I said I'm working on the solution. However, take this, the rich are rich because of their life choices and habits. One of those habits is investing. You see! these people could get a salary and a percentage of that must go into some form of investment. They don't get a salary and start thinking of a nice watch, car, vacation, etc. Yes! they may do that but their investments always come first. I have read about these types of people for a while now and what they do differently. Even their own savings accounts in banks are called high-yield savings accounts, not the normal savings account you and I typically have. In a nutshell, these people always have their money making more money for them. I know I'm just talking at face value but I will dedicate another blog post just to talking about investments. 

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Let me wrap this up with this. Next week (13/12/2022), the US releases its inflation figures for the just-ended month of November 2022. Inflation had been running rampant in the US and their central bank had been raising interest rates to tackle it because the working class was really suffering as a result of the high inflation. This has been a similar scenario for almost every country except Japan. So you see, inflation is not a small thief and if big governments are doing their all to tackle it, why should you fold your arms or remain ignorant about it when it is literally hurting you the most? This is not a matter of getting a good job and a good salary, NO! it is a task of making your money make more money for you in the sense of several income streams. That's it, this is really all it takes. For the how part? I will bring you all up to speed in time. For now, just be learning and doing all you can to get any extra dollar you can in the form of passive income. And till then........... Take care.