By Leroy Ferrao- Founder of Leroy Ferrao School & Digital Life Coach
SMART STRATEGY NO:17 FOR UNPRECEDENTED TIMESS IN 2022
Two of the most serious concerns that might develop during an economic collapse are hyperinflation and food shortages. The planet was first afflicted by a global plague in 2020, and now the Russia-Ukraine conflict is causing hyperinflation and food shortages around the world. It is critical to be prepared if you reside in a region where these situations are common. There are a few things you can do to prepare for hyperinflation and food shortages, and this post will go through a few of them.
Many analysts believe that, given the current situation of the economy, hyperinflation and food shortages could occur over the next few months. There are certain things you can do to prepare if you’re worried about how this will affect you and your family. To begin with, it’s critical to understand what hyperinflation is and how it might affect the prices of products and services.
According to Investopedia, hyperinflation is “a very quick or out-of-control increase in prices, usually caused by money supply outpacing genuine economic development.” In other words, inflation occurs when the money supply expands faster than the economy can absorb it.
So, how might this affect coffee prices? Prices will rise if the money supply expands too quickly, resulting in more money chasing the same quantity of products and services.
In the event of a scarcity, it’s also a good idea to start stockpiling non-perishable food and water. Finally, you should have a plan in place for how you would sustain your lifestyle if the cost of living skyrocketed due to inflation.
#1.Keep a supply of non-perishable food on hand.
First and foremost, keep a supply of non-perishable food on hand. This will help you get through any potential grocery store fresh food shortages. If you must go out, try stocking up on perishable products that will stay in your fridge or freezer for a few days.
Try to cultivate your own food if you can. This is an excellent approach to ensure a consistent supply of fresh food. You can grow herbs and veggies in pots even if you don’t have a lot of space.
#2. Diversify your income sources into cash-flowing assets.
Second, you should make an effort to diversify your sources of income. This will come in handy if the value of your money depreciates due to inflation. Inflation can be disastrous to your finances if you only have one job and all of your money comes from one source. To make ends meet, you’ll have to spend more of your money. This can put a lot of strain on your finances, making it tough to keep up with your payments. However, if you have numerous sources of income, you will be far better prepared to weather the storm. You’ll still have to keep an eye on your finances, but you’ll be far better prepared to deal with inflation.
The strategy is to earn more and save more cash in these perilous times.
#3.Invest in yourself.
Thirdly, you should make an investment in yourself. This necessitates devoting time and effort to learning about personal finance and investing. To start your online business, you can learn online for free by installing our app, Leroy Ferrao School, from the Google Play Store. The more you understand these concepts, the more prepared you will be to make sound financial decisions in the future. In such difficult circumstances, the value of education simply rises, and inflation cannot depreciate it.
#4. Create an Emergency Fund
Fourth, always be on the lookout for unforeseen expenditures. You never know when you’ll encounter an emergency that forces you to spend more money than you have. You can avoid having to rely on credit cards or loans to pay for these unexpected expenses if you have a limited amount of cash set up. You should keep your money in a government bank. This entails depositing money into a savings account or an investment that will not depreciate in value over time. Many individuals choose to keep their money in a bank account since it is a very secure way to maintain it.
If you are concerned about inflation, you may want to consider investing some money in gold or silver, real estate, or land, as these assets will make you wealthier in periods of high inflation because their value will rise faster than inflation. On the other hand, if you don’t have cash flow assets, you will be poorer and will be wiped out by hyperinflation.
#5. Be disciplined when it comes to spending cash.
Fifth, when it comes to money, be self-disciplined is to keep your money safe during periods of high inflation. Avoid buying depreciating consumer goods such as cars, which will not only deplete your savings but will also depreciate in value over time. Maintain a minimalist lifestyle by focusing your spending on your family’s health and education. Avoid taking out loans since they will put you under a lot of stress. Instead, raise funds by diversifying your sources of income and selling any assets you may currently own. You should make every effort to save money.
This entails putting money aside each month to save. Save as much money as you can if you can so that you will have more money when you need it. Finally, it’s a good idea to have a strategy in place for how you’ll barter or exchange products and services if traditional currency becomes worthless due to hyperinflation. You may help protect yourself and your family from the potentially disastrous effects of hyperinflation and food shortages by adopting these precautions.
In conclusion,
Only those who plan for the future will make it successfully in the long run. Applied knowledge is power against inflation and food shortages that will become the norm in the days to come. Only action-takers will be rewarded and will navigate the future successfully. However, those who do nothing and wait for the situation to get better will be wiped out and become history. Take charge and focus on your economy and not the world’s doomed economic policies.
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