***NOT FINANCIAL ADVICE***
There’s lots of warning signs that inflation is coming which means the value of the dollar is going to plummet. This is what happens when your government prints trillions of dollars out of thin air, and then your president re-commits to printing trillions more out of thin air. Money machine go brrrrr.
As an example of how prices are rising for everyday goods in America, here’s a chart from DailyMail . What this basically means is you need more dollars to buy the same amount of product than you did before.
Welcome to Joe Biden’s America!
So how can you defend yourself against inflation? Here are some ways you can neutralize the effects of inflation.
Move to a country with a lower cost of living
This strategy works whether or not you’re trying to neutralize inflation in terms of happiness. There are only a handful of countries in the world that are as expensive as the US (like Singapore or Hong Kong). The vast majority of countries worldwide are much cheaper to live in (Southeast Asia, Mexico, South America, Eastern Europe etc). This is the strategy I adopted in 2019 when I moved to Thailand. I was able to have a much higher quality of life for a fraction of the price of living in the US.
As a bonus, American men are generally more desirable in other countries than they are in the US in dating terms so you get to date more attractive women. This is why I always recommend that a man travels the world and dates internationally before committing domestically. Comparison shopping on a global scale, except this purchase can impact your life much more. And foreign women tend to hold more conservative values so if that’s of interest to you, book a flight and catch flights, not feelings bruh!
I estimate the cost of living in Thailand to be 10-20% the cost of USA. A $60 1-hour massage in NYC is now $6 (200 baht) on the beach in Thailand. Even if inflation pushes the price of a massage to $100 in NYC, the price in Thailand will still be low enough relative to the dollar, that you’re still ahead. You’ve now protected yourself against inflation while living better.
Move to a state with less taxes
New York City and Los Angeles have some of the highest tax rates in USA. Another option would be to move to a cheaper city within the US. New York City, is vastly more expensive than Florida, even if you factor in car ownership down south. Plus, consider the difference in taxes. From FoxBusiness,
Individuals earning $650,000 can save more than $69,700 in taxes per year by moving from New York to the Sunshine State.
There are massive ramifications to your tax rate based on where you live. That $69,700 will sure come in handy when inflation hits.
Make more money
Another way you protect yourself against inflation is to start earning more income. If inflation increases by 20% but you’ve found a way to earn 30% more, then you’re still ahead by +10%. However, making more money generally means working harder, longer hours. So while you may have more money in your pocket, your lifestyle and health may suffer as you’ll be giving up more of your personal time.
Invest in stocks or crypto
This tip is not guaranteed because it’s based on factors which are out of your control such as overall market performance. But if you’ve been in the stock or crypto markets for years, you’ve likely seen massive gains. Your money has grown (especially in crypto) at a rate inflation will likely never touch. For example, while the prices of some goods have increased by 20% in the US (per the chart above), some of my coins have increased by 1,000% in value over the last year. I am ahead of inflation by 980%.
For example, if you invested $1,000 in Dogecoin in January 2021, you’d have well over $100,000 today! (for the record, I am not a Dogecoin holder). Even if the cost of bread doubles, you can afford a lot of bread regardless!
As you can see, there are several strategies to hedge against inflation, all of which I’m currently using.
- I moved to Florida when the pandemic hit (lower taxes, lower cost of living)
- I am currently in Mexico where the cost of living is 25% of USA
- I started investing in crypto in 2019 and my holdings have grown exponentially
Another benefit of lowering your cost of living is that you can afford to take larger risks in the markets. Even if you want to be more conservative, as long as your principle amount is high enough, than your investments will grow faster than your cost of living, so you are actually increasing your net worth while not working. And this is very essence of Be Free My Sheeple!
Keep in mind none of the above is guaranteed. You could work harder and see no improvement in pay. You could invest in the markets right before a crash. But by moving to a country with a lower cost of living, you’ve hedged yourself against inflation or the markets underperforming.
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