Financial Advice For The High Inflation Times Ahead

by Chuck Ness

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.

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.