When people look at investing, they usually take into consideration the number of dollars they’re going to have at the end. If you’re making a long-term plan that lasts for 30 or 40 years, it might put a smile on your face that you’re going to be a millionaire.
That’s all fine and dandy, but what if those million dollars get eaten up by inflation. That’s the silent killer that no one thinks of when they’re making their plans. For that reason, it’s important to look at your future savings and investments in terms of other asset classes. Click here to read more.
We’ve all been to the store, and out of nowhere, the price of milk has doubled. When did this happen? No one knows. The prices have changed while the dollars we’re bringing back from our jobs remain the same. In some cases, you might have to work two jobs just to make ends meet at the end of the month. So, what can you do?
How to invest when you don’t have enough money?
Even though we keep noticing that the stock market is doing good, the S&P500 is rising, the same is true for the Dow and real estate, and yet the cost of living is increasing. In order to answer this question, we need to ask a different question. Are these assets actually declining in value?
The answer is yes and no. To calculate the value of something, you need to compare it to something else. Let’s say you have a house. The dollar price of the house might increase every following year, but you need to compare it to gold, oil, and the Dow. Follow this link for more info https://www.thermofisher.com/blog/metals/what-are-precious-metals-and-precious-metals-alloys/.
When you compare it to all of these factors, you will realize that the value stays the same or even decreases. Then how can you buy something that brings in profits when the value of the dollar keeps decreasing. This is a question that many people struggle with.
The answer is simple, but the execution is hard. It’s going to require a high level of discipline and perseverance in order to see profits. If you know how to time the market, it’s going to make you feel a bit more comfortable.
The steps you need to take
First things first, you need to lower your expenses. If you’re earning a set number and spending the same, you need to find a way to beat that habit. Instead of going out every week, try to limit that and go out once a month. Pick groceries that have the same nutritional worth but are cheaper brands.
This will force you to think in monetary terms since the only difference between products is the packaging and the brand. Look through all the marketing lies, and you’ll be surprised at how much you can save. Next comes the investing part.
As plenty of great investors say, cash is trash. You don’t want to keep cash close to you because it’s easy to spend it. That’s why it’s much better to keep your money as gold. Precious metals are assets that will never go out of fashion, and they always work in cycles. Whenever the dollar purchasing power decreases, the purchasing power of gold and silver increases.
When you compare the investment numbers between the year 1999 and the year 2008, gold had a 250 percent increase, while silver had an even greater bull run of 300 percent. That is something that can’t be compared to the stock market.
For this reason, it pays off to invest a bit of time in learning the economy and paying attention to trends. When everyone is buying, it’s best to sell. When everyone is selling, it’s time to hoard as much as possible of those assets.
A few final words
There are government institutions that advise against the purchasing of precious metals because they deem them as unsafe. On the other hand, central banks are trying to get their hands on as much gold as possible since they know that’s where their power lies.
Instead of hearing what is being presented in the media, it’s best to look at what the most powerful authorities and institutions are doing. Monitor their behavior and do the same. Actions always speak louder than words.
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