Beating Inflation Is Laughable
That is, as today’s dollars inflate, it will be easier for you to repay the loan in the future.
Even this English major can see that makes sense — sort of.
Another tip: buy cars.
That was certainly my strategy in my spendthrift 20s, when I lived paycheck to paycheck, in part because I always had to have a nice ride that I couldn’t afford.
I can’t believe any news outlet would encourage Americans to put their money into automobiles, traditionally a horrible, rapidly depreciating investment.
But in a world turned on its head — there is a shortage of cars due to a shortage of computer chips used in their manufacture — even new and old cars are soaring in value.
My father has lost a fortune in cars over his lifetime, as they depreciated 30 percent or more the day he drove them off the car lot.
Finally, he got lucky. He leased a 2020 Kia. A year from now when his lease is up he will make the payoff of $13,500 and keep the car because it will be worth significantly more than that.
Bloomberg offers some traditionally sensible tips, such as buying inflation-linked bonds, which increase in value as inflation increases.
Bloomberg also suggests buying a home, which also makes sense, as a house is a great hedge against inflation. Though good luck finding one at a reasonable price, as housing values have soared.
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Copyright 2022 Tom Purcell, All Rights Reserved. Credit: Cagle.com
