The smartest way to fight inflation is never to save money desperately, but to know how to "make good use of debt."
Many people get scared when they hear the word "debt", thinking that it is pressure, risk, and the source of insecurity in life.
But in fact, in an era of high inflation, the biggest risk is not borrowing money, but doing nothing.
Because money itself is constantly depreciating, the purchasing power of the cash in your hand is being stolen by time every day, and those who understand the rules of the game have long learned to use "debt" as a weapon.
Imagine that if your loan interest rate is only 2%, and the average market inflation rate is close to 3%, you have actually "earned" 1% of purchasing power.
Then transfer this money into investment tools with stable returns, such as funds with an annual return rate of 5-6% or above, dividend-type ETFs, or assets with stable rental income. The interest rate difference will become your "inflation dividend."
This money not only does not become thinner in the torrent of time, but also helps you create more cash flow.
However, those who hold on to cash and are afraid of debt are being "silently harvested" by inflation without realizing it.
The actual purchasing power of 1 million yuan a few years ago may only be 800,000 yuan now; on the other hand, the "value" of that 1 million yuan mortgage or financing has actually become much smaller due to the erosion of inflation.
This does not mean that you should borrow money or invest indiscriminately!
The real key is to know how to distinguish between "good debt" and "bad debt".
Borrowing that can create cash flow or hedge against inflation is a tool that can give you greater financial freedom.
Debts that are only for consumption and have no output are the real traps that ruin your life.
Therefore, the best solution to combat inflation is not to save or be afraid, but to learn to "use the force of the coin" during inflation.
Let debt make money for you and let time pay you back. This is the real starting point of financial freedom.
This website does not have those annoying ads that block the webpage and hinder reading!
If you think my article is helpful to you, you can joinOfficial Line@, allowing me to better understand everyone’s needs and write more high-quality content.
