How Do You Store Value to Offset Inflation?

[trendcoin]

I target anything with a limited supply, but gold and Bitcoin are among my first choices. We need to keep the portfolio broad because we should not put all our eggs in one basket. I've always seen Bitcoin as an asset that has qualities very close to store of value like gold and silver. I also put some of the major altcoins like Ethereum closer to this category, but I'm more cautious with them. Also, if I had a lot of money, I would definitely buy land. Unless we succeed in colonizing Mars, it will continue to be the asset with the most limited supply unless we succeed in making solid fillings in the sea...

[Casdinyard]

I will tell you what I am doing for my retirement, considering the value of money will depreciate over time due to inflation and other external factors.

My investment details:
1. Index Investing via ETF (10%)
2. Direct equity (10%)
3. Paper Gold (15%)
4. Crypto (2%)
5. Tax saving mutual funds (10%)
6. Hybrid mutual funds - both equity and debt (20%)
7. Mutual fund focused to defense/military sector (3%)
8. Insurance (10%)
9. Bank deposit for emergency liquidity (10%)
10. Real estate investment trust funds - REIT - Market listed (10%)

* All my mutual funds are growth based. So the dividends go back to investment
* REITs provide me with regular income. One payment each quarter and one final annual payment.
* I receive dividend income from the stocks I hold but I usually invest those back into the market
* I do not sell my cryptos and I am only accumulating Bitcoin and ETH. I don't invest in shitty crypto projects or in NFTs.
* I do have a mortgage for which I make monthly payment which is excluded from the above list. But it is also an investment for the future especially a metro project is nearing completion near my apartment.
* If I compare my returns, the defense focused mutual funds have given me triple digit returns besides crypto.

I am very confident that I will be able to beat the inflation with my investment.

That's some in-depth investment venture breakdown lol. I personally only have my crypto and some real-estate properties yet to be realized as my go-to to save my ass from inflation, but soon as those take off I think I'm gonna be set with the passive income my apartment complex is going to make. among other things. Crypto on the other hand is crypto, we know what the hell it does. Pretty sure years from now as long as no one unplugs the internet we'd still be talking about crypto and saving up on it cause it's the only venture out here that's honestly accessible to the average joe.

So yeah, same as you are, I'm pretty confident that I could beat out inflation in the foreseeable future, with more to spare for upcoming generations.

[Abiky]

Honestly, some fiat currencies aren't doing that bad. The USD has consistently low inflation rate, aside from a couple of exceptions (and in those cases, it still outperformed most other currencies). But that still means gradually losing money, around 3-4% every year. Cryptos are all very different, so I'd focus just on Bitcoin as the leading crypto. I like that it's very accessible: you don't have to buy a lot, you don't have to commit to it (you can always sell), you can store it yourself, and it has high liquidity, so you can make fast decisions if you need to. The rest of the options (stocks, real estate, etc.) seem less accessible to me: they often require a serious commitment, sometimes the liquidity can be an issue, and you often need a very decent amount of money to start.

Any Fiat currency is subject to lose its value over time. That's why they have inflationary rates (which means the issuance of new units into circulation by the central bank). If they were as deflationary as Bitcoin, people would've had greater purchasing power by now. And that's not what governments want. Else, it would mean the end of corruption/manipulation by the "Elites". It's best for them to keep the system as is where the rich get richer, and the poor, poorer.

It you want to survive, you must find ways to help protect yourself against inflation. Gold and Bitcoin are all you need to start building wealth. Silver is also an option worth considering. Especially when it's undervalued. Just spend your money wisely and there should be nothing to worry about.

[oktana]

Cryptocurrency is really a volatile one. But I am not expecting anyone to put all their money in it. What’s a great idea would be to split your money into many of them. So you don’t have all your eggs in basket (just incase the basket were to fall tomorrow). Real Estate is one to invest more in, it is a locative one and people who deal with houses and land are averagely rich. It’s a way to store value for even a long while, yet a way to make money.

I also like property to invest in because property investment is safe and I like rental properties because that give monthly fare and we can easily manage our system and we can take liabilities from that money. Many people are confused about liabilities and assets ,they think their house is an asset but house in which they are living,that is liability. So invest in a rental property and get fare from the tenant. Also commercial land is helpful in many cases but it requires a multiple times investment than in rental properties. Plot are benecial if you want to invest in a long term but location of land matters a lot and everything depends on location. If you bought property on a best location,you will be rich in future.

You can have your preference but personally, I don’t think I like rentals of homes. I would rather build it and sell it off to make the money all at once than to gradually collect the money invested. Owing a house and continuously managing it isn’t that easy. You’ll have to make sure you fix anything that goes wrong, you have to maintain the house often, and all of that strenuous activities. But it works really well for some people; if for instance you have so many properties in which you have so many tenants, that’s massive. After all, it feels good when you see that money coming in every month.

[passwordnow]

First is to stop unnecessary spending of your money so that you can store and retain the value of your money. Prioritize what are the things that you have to purchase and stop eating outside. Well, for some cases in some other locals and countries, they're telling that it's cheaper to eat outside from those convenience stores like eating with bentos and buying that meal for one that costs them lesser than cooking their own food.

The things that OP mentioned are good investment vehicles to store your wealth to fight inflation. You have to remember that those assets where you'll be putting your money should generate more profit in percentage of the year's inflation. Obviously, if the inflation for this year is about 4% then you should get about 4.5% or even more from where you'd put it. And with Bitcoin, it's outperforming those percentages when it's getting to the bull run.

[shinratensei_]

You can have your preference but personally, I don’t think I like rentals of homes. I would rather build it and sell it off to make the money all at once than to gradually collect the money invested. Owing a house and continuously managing it isn’t that easy. You’ll have to make sure you fix anything that goes wrong, you have to maintain the house often, and all of that strenuous activities. But it works really well for some people; if for instance you have so many properties in which you have so many tenants, that’s massive. After all, it feels good when you see that money coming in every month.

those strenuous activities could be avoided honestly just make a contract where the tenant takes care of it and you decrease the price, i think it will work out, but if we are talking about apartment style housing then it is going to be pain indeed, too much things need to manage.
but its actually a good investment if you're into being landlord, I mean your property rise in capital and you get monthly earning essentially you're already offsetting inflation on top of having income, the effort you spend is actually well worth it. as long as the housing price doesn't collapse, your investment is pretty much the safest investment out there.

I target anything with a limited supply, but gold and Bitcoin are among my first choices. We need to keep the portfolio broad because we should not put all our eggs in one basket. I've always seen Bitcoin as an asset that has qualities very close to store of value like gold and silver. I also put some of the major altcoins like Ethereum closer to this category, but I'm more cautious with them. Also, if I had a lot of money, I would definitely buy land. Unless we succeed in colonizing Mars, it will continue to be the asset with the most limited supply unless we succeed in making solid fillings in the sea...

Even if colonizing mars is a success terraforming require massive capital, the interplanetary lands out there definitely aren't gonna be affordable for the average people
at that point when we colonize mars, we'd be more concerned about precious metal plummet in price because we're nearing capability of interplanetary mining as well and the price of anything mineable gonna decrease significantly making effort of offsetting the inflation through golds, etc rather meaningless. which honestly, too far fetched for current technology.

[Abiky]

First is to stop unnecessary spending of your money so that you can store and retain the value of your money. Prioritize what are the things that you have to purchase and stop eating outside. Well, for some cases in some other locals and countries, they're telling that it's cheaper to eat outside from those convenience stores like eating with bentos and buying that meal for one that costs them lesser than cooking their own food.

The things that OP mentioned are good investment vehicles to store your wealth to fight inflation. You have to remember that those assets where you'll be putting your money should generate more profit in percentage of the year's inflation. Obviously, if the inflation for this year is about 4% then you should get about 4.5% or even more from where you'd put it. And with Bitcoin, it's outperforming those percentages when it's getting to the bull run.

Exactly. One must prioritize saving over spending. You'd need to make a budget that would allow you to spend less than what you earn. Avoiding a deficit, is key towards building your wealth. Spare money should be invested in scarce assets like Bitcoin and Gold. "Stick" to the plan, and there should be nothing to worry about.

At some point, I think inflation rates are going to decline all the way down the drain. Prices for goods and/or services can't remain high forever. Central banks are doing their best to keep things under control. I sure hope they don't fail, or the global economy will be ruined forever. Who knows what lies ahead in the future?

[_BlackStar]

-snip-

Exactly. One must prioritize saving over spending. You'd need to make a budget that would allow you to spend less than what you earn. Avoiding a deficit, is key towards building your wealth. Spare money should be invested in scarce assets like Bitcoin and Gold. "Stick" to the plan, and there should be nothing to worry about.

However - I agree that everyone should prioritize saving. This sounds simple - but basically each of them has their own obstacles in the process. Anyone who has more than one source of income is very likely to save once they have met their needs - but it will be very difficult to prioritize saving when they only have one source of income which only covers their monthly living expenses and bills.

Personally - I am having a really hard time saving money amidst the current bad economic situation. The cost of necessities increases due to inflation, the value of money is unreliable when you can only afford so little. Prioritizing saving will make me reduce many other needs – in fact this is never good for supporting a healthy life from a physical and mental perspective.

At some point, I think inflation rates are going to decline all the way down the drain. Prices for goods and/or services can't remain high forever. Central banks are doing their best to keep things under control. I sure hope they don't fail, or the global economy will be ruined forever. Who knows what lies ahead in the future?

Improvements will of course be attempted - but things will not return to normal easily. The world is not even in a good condition when war is everywhere - this will clearly make things worse. Of course we hope for the best - but we have to find solutions ourselves instead of relying on the government.

[Silberman]

Exactly. One must prioritize saving over spending. You'd need to make a budget that would allow you to spend less than what you earn. Avoiding a deficit, is key towards building your wealth. Spare money should be invested in scarce assets like Bitcoin and Gold. "Stick" to the plan, and there should be nothing to worry about.

...

Making saving a priority can be hard even for those that have a high income, as many of those fall victims of lifestyle inflation in which every single extra dollar they get is an extra dollar they spend, but this is even more difficult for those that have a low income, since the only way for them to save is to reduce expenses on some key areas of their life, which will bring its own set of problems on the future, and if that was not enough, while saving for a few months is a feasible goal for the majority, to keep doing this for several is years is many times harder, because after those first months people will begin to think they are entitled to spend that money, after all they earned it, and just like that they will stop saving any money which could later be used to invest in an asset which is a store of value.

[Plaguedeath]

Exactly. One must prioritize saving over spending. You'd need to make a budget that would allow you to spend less than what you earn. Avoiding a deficit, is key towards building your wealth. Spare money should be invested in scarce assets like Bitcoin and Gold. "Stick" to the plan, and there should be nothing to worry about.

...

Making saving a priority can be hard even for those that have a high income, as many of those fall victims of lifestyle inflation in which every single extra dollar they get is an extra dollar they spend, but this is even more difficult for those that have a low income, since the only way for them to save is to reduce expenses on some key areas of their life, which will bring its own set of problems on the future, and if that was not enough, while saving for a few months is a feasible goal for the majority, to keep doing this for several is years is many times harder, because after those first months people will begin to think they are entitled to spend that money, after all they earned it, and just like that they will stop saving any money which could later be used to invest in an asset which is a store of value.

Saying high income maker can't save is a bullshit, those people are choosing their own lifestyle and the way they live. If you find such people, better to calm down and never discuss about money management because they will never want to learn it, except something big happened them.

Different people different character, one is over saver and one is over spender, it's not something we need to discuss because they're happy with their own choice.

[_BlackStar]

-snip-

Saying high income maker can't save is a bullshit, those people are choosing their own lifestyle and the way they live. If you find such people, better to calm down and never discuss about money management because they will never want to learn it, except something big happened them.

Different people different character, one is over saver and one is over spender, it's not something we need to discuss because they're happy with their own choice.

Imagine if one of those two people was a member of your family - what would you do if you had to give him advice?
Meddling in other people's affairs is inherently bad - but if it's an important part of your life, maybe you should give them some good advice. It's best to keep quiet about things that don't concern you - but advising him is an option if you're the one being listened to.

Everyone also knows that they have their own choices in managing their finances - that's their responsibility, of course. But try to make a good approach if he is a member of your family or a friend - maybe it will change his pattern and lifestyle to think not only for now.