Financial Advice For The High Inflation Times Ahead

The Reason For My Faith ^ | 1/8/21 | Chuck Ness

[OneVike]

Word to the wise. While being in debt is not normally a good thing, sometimes it can be wise. Take for instance the Communist Democrats being in power means that inflation will rise. With inflation comes higher prices, which means you need to reconsider certain aspects of your finances to deal with the oncoming higher cost of living.

It's inevitable, because of the Democrat's social agenda of higher taxes, increased regulations, higher Federal minimum wage, and their war on the fossil fuels, because of their 100 trillion dollar Green New Deal plans. That is just the things the Democrats are promising to do. We still have no clue of what Joe Biden wants, because no one ever asked him. Trust me, inflation will rise and the dollar will become weaker and weaker.

Just as it did under Obama, gas, groceries, clothing, cars, utilities, etc. etc. etc. will all increase and your worth will begin to decline. In some cases as low as 5%, but expect some costs to rise by 50% depending upon the sector the product belongs to. With their Green New Deal proposals, be ready for gas prices to rise by 200% to 400%. Other items will be meats and produce, which if they go forward with their destructive plans, your steak and salad costs are going to go through the roof.

With their plan to increase the minimum wage to $15 at the Federal level, you can expect everything to start soaring in price. Add to the mix that small businesses will continue to close, so the unemployment rate will rise. This means they will have to increase the money they spend on social services that will force them to raise taxes on those businesses that are still open. Which will cause them to lay more employees off.

In order to keep up with the decline of the government's revenue via taxes from the shrinking Middle Class, the government will have to print money to pay the bills so they can keep those government checks going out. Every time the government prints money, the worth of the money you have drops. So a dollar today could be worth any where from 3% to 15% less next year. With every percentage drop in the value of a dollar, you lose $1 off every $100 dollars. I use 15% as a high on the dollar weakening, because of the cost estimated for the Communist Democrat's Green New Deal plans.

So, what am I saying? I'm telling you that If you are planning on purchasing something, get it now. Even if it means to get it on credit, because the price you pay for something today, will cost a lot more before these Commies in Congress get tossed, if they ever do. If there is a high dollar item you are considering, then I highly advise you to buy it now while the price is still favorable, because in a year it will cost you a lot more than it costs now.

Another thing too consider. If you have to buy something on credit, then do it now, because the money you will use to pay the credit card off with will be worth less next year than it is worth today. Which will be an extra saving to you on top of purchasing the item at today's lower cost. A win win for you, because of inflation. Here is an example. For simplicity's sake I will deal with a $100 dollar item.

If you stash $100 under the mattress today and inflation is 3% per year, then when you come back a year from now your $100 will be worth only $97. Now, let's say you see something you want that costs $100 today, but you decide to hold off for a year. Well, come next year the 3% inflation rose the price of that item to $103.  You just lost $6 dollars by waiting a year to purchase the item. Had you purchased the item when it was $100, you would have saved $3. Had you used your credit card and paid it off next year, you will have payed it off with money that is worth 3% less. Thus a total savings of $6, and a difference of $12 from what your loss would have been. 

So, depending how big of an item you want to buy, you may be better off purchasing it on credit at today's cost, and paying for it with money worth less later. Because trust me, inflation will sky rocket under the Communists reign. I understand you will have interest on your credit card, but I am referring to a high dollar item that would probably cost you thousands of dollars, not just $100.

Sometimes going into debt today, can save you more money than waiting until you can afford to pay cash for the item, because of inflation. Now, I'm not urging anyone to go into debt for anything you cannot eventually pay off without causing yourself long term financial stress. What I'm telling you is ,IF, you are already considering the purchase of a high dollar item, I would get it now. Put it on credit, and thus you will be paying off the loan with money that will be worth less later as you make payments.

Without a doubt, those with a lot of money are already doing as I suggest. That is how they are able to weather the financial ups and downs of life. Buy when you can afford things, pay cash if it will save you money, but use credit if it will save you money. Understanding economics in this World is something every person has an obligation to themselves to do. It will make your life, and your families life better. 

One more bit of advice for anyone considering purchasing stock. If you can, buy GOLD! Inflation plus a weak dollar equals a higher price for Gold. It happens every time. That is one of the ways Warren Buffet makes his Billions.

I have always counted on the Wisdom God gives me to do things. It has served me well throughout the years. I have said it time and time again, everyone should read a Proverb from the Bible once a day. It's known as the Wisdom of Solomon, and he was blessed with it from God. Read them daily, study them, contemplate them, and pray for God to guide you in all your dealings, and I promise as long as you'd do, God will always have your back. You may not become the next Warren Buffet, but I promise you will never be poor.

[OneVike]

Your like me. Use their no interest offers and just transfer it to a new card when needed. We have paid no interest in 25 years. All we pay is the 3% transfer fee.

[MachIV]

I also suspect silver is better but where can one purchase precious metals without getting ripped off?

Conservative media has been peddling Gold Exchange and all these other groups for over a decade but they all looked like fly-by-night to me.

[MachIV]

Not exactly the Dave Ramsey way of doing things but under the soon to be dire circumstances, the logic makes sense......unfortunately.

[Starboard]

As the dollar goes down the valuation of stocks goes up.

************

You can also short the dollar. Its working for me.

[CurlyDave]

...If you stash $100 under the mattress today and inflation is 3% per year, then when you come back a year from now your $100 will be worth only $97. Now, let's say you see something you want that costs $100 today, but you decide to hold off for a year. Well, come next year the 3% inflation rose the price of that item to $103. You just lost $6 dollars by waiting a year to purchase the item...

I think this guy has taken too much of the new math.

If I stash a Benjamin under my mattress, Joe Biden isn't going to creep in in the middle of the night with a Sharpie and write $97 on it.

What I want to buy might cost $103, but the bill still has $100 written on it and I only have to add $3.

[Blood of Tyrants]

Works as long as you can keep transferring the money. I don’t have any credit card debt. Haven’t bought anything on credit in years. If I don’t have it in the bank, I don’t spend it.

[OneVike]

In one years time, the buying power of that dollar is less by 3% because of the value of the dollar on the world market, plus the goods will be worth 3% more due to inflation. If both are 3% in opposite directions, then the difference is a 6% saving on what you bought today as to how much tomorrows dollar will be worth.

Standard economics.

[OneVike]

Then do as I say in the article, buy what you might next year this year, because the price will go up.

I stated that if you use credit, then you could pay off the debt next year with next years money that will be worth less.

I stated in the post that it is best to pay cash if you can, but not everyone has $35,000 cash to buy a car. When the car today is worth one price, next year it will be more, and the dollar you buy it with will be worth less.

I used the small amount of $100 just to make the point more reasonable to those who are not used to the analogy. I kept it at the number where the % would be $1 per each extra %

[dynachrome]

these are the guys I like for online and have used before. Prices are up a bit of course. The boxes are discreet. “Bearings” sometimes. haha

https://www.providentmetals.com/

[dynachrome]

It’s a hedge. I keep some green pieces of paper around, too.

[jdsteel]

Some good advice there, some bad.

I’ve never heard of Buffett buying gold. He buys companies.

If you want to hoard metals hoard lead. Maybe junk silver, non-numismatic silver coins. Think the dollar is going down? Buy foreign securities.

Big ticket items like a house? Yeah. Good time to buy & lock in a low 30 year rate.

[tbw2]

What can I do? In the face of the coming storm, what constructive actions can we take to conserve what works and protect ourselves? Here are a few actionable solutions anyone can adopt at a personal or local level.

Find your tribe. Network, meet in person. Social media can’t censor what you say in private. This also helps you emotionally, since you’re meeting with people who support you instead of mistaking the digital lynch mobs for what matters.

Preserve conservative institutions like churches, schools and clubs. Fight social justice infiltration or pressure to submit to liberal political demands like, “you really need a BLM lecturer in here, you’ll be good if you throw up our political symbols”.
Educate. Teach your kids your values at an early age, by reading stories that share your values. Don’t let the kids go to drag queen story time or social justice story time. Protest if the school or daycare does this, or if you’re not able to do that, take your kid out and discuss the protest with other parents. Abilene Paradox – people wrongly think that the official dictate is what everyone agrees with because no one says anything against it.

Buy books that explain the conservative worldview and defend it like those by Dennis Prager. Buy books that explain why liberals and conservatives are different without demonizing them like Jonathan Haidt’s works. And start book clubs reading these books. Hello, tribe!

Fight any attempt to add social justice to codes of conduct. For example, the National Association of Realtors just implemented a policy where you can be fined or expelled for “hate speech”, public or private. Other organizations have weaker versions of this, but expect it to ramp up.

Law, medicine and social work already have rules regarding this, equating trust and respect and empathy to liberal values - so you can’t get licensed if you don’t agree. Fight this, if you don’t want to be kicked out of professional organizations if you don’t pass the liberal political litmus test.

Hire conservatives, because businesses are firing them. Assist those who have been fired for their beliefs.

2ndvote.com allows you to find conservative and neutral businesses that share your values.
You can even sort by category (restaurants, groceries, hardware, retail) or values (pro-life, 2nd amendment).

Do you like the local or national conservative talk show hosts? Buy the stuff they’re hawking, and especially use the reference or discount codes they provide. This will tell sponsors that this sponsorship is financially important to them. And that helps keep these shows on the air.

Clean your room. Sort yourself out. You can’t fix the world, but you can improve your own life and situation. Read Dave Ramsey’s Financial Peace University books. Get out of debt. Save up an emergency fund. If Biden’s cronies crash the economy, you’re in a much better situation. And you’re in a Christian group that can be the start of your tribe, or you can arrange classes at your church or with your networking groups to bring everyone closer together.

Encourage Sanctuary Cities/Sanctuary States on any issue you support. Second Amendment sanctuaries already exist. Pro-life Sanctuaries are far fewer but could spread. Support the groups that got these policies passed, and encourage such movements in your area. You may not be able to change federal tax and immigration policy, but you can try to preserve free speech if someone can implement a First Amendment Sanctuary law at a state level.

[tbw2]

Dave Ramsey’s right. Pay off debt, have a 6 month emergency fund.

[Pining_4_TX]

I feel like things are going to be bad for us. No debt, renters, and on fixed income. If there’s inflation, we are in trouble.

[central_va]

Amazon? Traitor....

[jdsteel]

I wish you well.

[Grampa Dave]

Yeah, that will be changing.

[Pining_4_TX]

If push comes to shove, we will just move in with our kids.

Ha, ha, ha...