How do you strategically navigate hyperinflation to safeguard your financial well-being?
Would you invest on crypto, stocks or household when the cash is not the king?
To survive when hyperinflation occurs, of course we have to be wise in responding to it by abandoning the consumerist lifestyle, and of course seeking as much income as possible in order to maintain financial well-being during times of inflation. Apart from that, we also have to get used to living simply. If we lived in the countryside it would certainly be better because we could raise livestock and farm to meet basic needs and fill savings.
When hyperinflation occurs, investment is of course a good choice to protect value, so investment is a moment that must be utilized well, such as buying gold or bitcoin. I only keep money in the bank, never more than I need and I also use it as microtransactions for daily and monthly shopping purposes only.
I don't trust banks, just like banks don't trust me when I apply for a bank loan.
I think consumerist life style is not the first thing you should get rid of. Remember, what you buy today, will be more expensive later on, so you could make a profit that way. I am not saying have stuff that would be useless, but do have stuff that can be both liabilities and assets.
Let's assume this, if you buy a tablet, like ipad for example, that would look quite useless, I did that, just about 6 months or so ago, but today it is 1.5 what it was, so I can sell it right now and make a profit, even though I used it. If you ask people, they would say it's liability, but because a newer version didn't come out, and it's new year, and everything got new prices, the amount an ipad costs ended up higher. Even if it is the same amount, it's investment, and I can sell it, and still have cash.
Continuous inflation had made many of us to keep thinking how we could invest our money and get something better in return. I could remember some of the things I bought early last year, the price of same products had increase by more than 20% and this is why we don't have to keep procrastinating always.
Anything we intend to buy now whether for business or for households, it will be advisable for us to buy now because the price might keep increasing everytime and we might not know when inflation will reduce and price of goods will also reduce too. Investing our funds is one of the ways we can make money for ourselves in a bigger picture rather using the funds to buy liabilities.