Summary: Inflation is at an all-time high, but that doesn’t have to get you down! Today we’re giving you the tools for how to use inflation to help you knock out bad debt, grow your wealth, and secure your future.
Usually, the word debt invokes some pretty negative feelings.
No one really WANTS to be in debt, right? To be in debt is to owe money, and to owe money is a burden that’s super hard to shake! 😅
Well, this is half true, because there really are two sides to debt ➡️ good and bad.
And we’ve discussed good debt (the kind you want to have) plenty of times before. Here’s our podcast episode that talks all about how good debt can help you grow your income.
But we’re going all in on the baaaaad debt today. Specifically, we want to share how to get rid of the scary debt that keeps piling up. And if you have some of that, don’t fret.
You’re sooo not alone. 😌🙌
Most of us have some form of debt from college, car loans, credit cards, mortgages, etc. But the real issue is the fact that our entire country is in MASSIVE debt right now. We’ll talk about why in a moment.
But the government has been printing and pumping more and more money into the economy because of all the accumulating debt.
Aaaand where does that leave us?
The dollar loses its value, and we hit a record-high level of inflation.
Good old inflation… the thing making gas prices rise to unprecedented costs that make you kind of want to cry. 😭😭
BUT no crying is needed today‼️
We’re about to show you how inflation can actually be useful in getting out of bad debt. Let’s look at how we got into this massive debt in the first place, and how we can all get on the right side of inflation – the useful side!
Here’s what’s up:
- How’d we get in this mess, anyways?
- 3 ways to use inflation for good
- Okay, wiping out debt is cool…but can we profit from inflation?
How’d we get in this mess, anyways?
We’re sure you didn’t miss this, but the economy is having a moment right now…notttt a great moment. And while recent events haven’t helped (like the Pandemic), the rough patch really started years ago.
Remember the economic crisis of 2008?
That was basically the catalyst for the debt and inflation we are facing now. You see, to reflate the stock market, our government took its balance sheet from $800 billion to $4.5 trillion because of the money being put into circulation.
More money was being printed to keep the financial system afloat, which initially led to a spike in inflation.
Now, jump to a couple years ago. Once again, the government needed to borrow in the form of bonds and other securities to disperse stimulus checks across the country. Then, a LOT of money 💵 was printed to address the deficit.
Of course, this time we have more debt than ever – both the government and individual people and families. That’s what happens when things shut down and people cannot work to support themselves.
It’s kind of a mess, ya know?
And now, here we are with soaring inflation…which reached a new peak of 8.6% as of May 2022.
To slow the economy, the central bank hiked up interest rates to calm everything down, which was a pretty aggressive move. What’s going to happen now is that everybody’s debt will rise even more. All those mortgages, student loans, and credit card debt we talked about earlier?
It’s allll going up.
You know what’s NOT going up, though? Salaries. People are not being paid more as a result of inflation. 😫😫
So, how in the heck can we get out of this mess?!
Well, very glad you asked. There’s actually a good side of all this inflation, because it can help cancel out the crazy debt we’re all in.
3 Ways to use inflation for good ⏬
1️⃣ Invest in an asset class that yields the rate of return that is parallel to the rate of inflation
Here’s the shocking truth these days…Saving is the new losing.
We get how that miiiight sound a bit scary, but stick with us. It used to be enough to set aside enough money consistently, to save for your future.
At least, that’s what we were taught growing up.
But with the current state of inflation, the money just sitting in your bank account could actually be hurting you. 😢😢
Here’s an example 〰️ let’s say you have $100,000 worth of savings in a bank account. If you’re getting 1% interest per year (which is unlikely), and inflation is at 9%, you’re losing out on 9% per year of major purchasing power.
Did your money disappear? No… but it’s definitely NOT helping you in any way. Instead of using that money to grow more money, it sits and becomes less and less valuable.
Putting that money to work for you is a muuuuch better way to secure your financial future.
2️⃣ Leverage your good debt to grow long-term wealth
We talked about bad debt earlier, right? Now we’re talking about the good debt – the type you can use as leverage. Leverage is using borrowed money to increase your return on investment.
So, what does this look like, exactly?
Hang tight, we have a little more math to get through for this one. 🤓🤓
Imagine you got a loan 5 years ago for $500,000 at 3% interest. And now, 5 years later, the money you borrowed is still the same, with the interest was fixed, you can pay it off with cheaper dollars, kiiiinda like you borrowed it for free!
Okay, not really free, but since inflation has gone up since you borrowed the money, you’re paying it back with less valuable money.
So, it really is like you’re paying back less than you borrowed.
3️⃣ Use real estate to hedge against inflation
Why real estate specifically? For starters, it’s a real, hard, physical asset that there will always be a need for.
Think about it.
Housing 🏡 is a basic need that just won’t be going out of style anytime soon.
Also, the cost of all the necessary building materials will go up over time (like the cost of everything). Roofing, concrete, the frame, etc, it will get more and more expensive, making real estate properties go up and up and up in value.
As inflation rises, so does the return on real estate investments. 🙌
Investing your money in real properties that will only get more valuable over time is the best way to turn inflation into WIN-flation.
Your returns can help you pay off any debt that you might have.
Okay, wiping out debt is cool…but can we profit from inflation?
We’re taking this all a step further.
A biiiig, exciting step.
Because we want you to know that it is actually possible to profit from high inflation. You see, there’s a great opportunity RIGHT NOW for anyone ready to get into the real estate investing game.
It’s currently a buyer’s market, not a seller’s market. Which means crazy high demand.
Right now is a great time for real estate investing, and it’s no secret that our chosen method is apartment syndication. 😍
And the reasons are pretty much what we just listed above: high interest rates, an ability to leverage debt, and real, physical properties that allow us to hedge against inflation.
It reeeeaally is magical how apartment syndication helps us keep growing (and growing and growing) our investments.
Pssst: it can totally do the same for you!
Honestly, inflation has helped make apartment syndication even MORE lucrative for those who get in on the action.
We’ve been doing this a long time, but the last couple years have been the most financially rewarding of our career.
So, to summarize all of this…
Is inflation the funnest thing ever? Definitely not. It affects all of our lives in big ways every single day. BUT when you’re able to take something seemingly negative and use it to your own advantage (like growing your income through apartment syndication), you can really change your perspective and future. 🤩🤩
And listen, the government has a lotttt of debt to work through, which means we don’t really see inflation going down anytime soon. It’s most likely going to keep getting higher.
That’s just all the more reason to start taking advantage of the benefits of real estate with The Kitti Freedom Club. Let’s chat, yeah?!
GET ME ON THE KITTI FREEDOM CLUB
………..
Rate, Review & Follow!
“I love Cashflow Multipliers.” ◀️ If that sounds like you, please consider >> rating and reviewing our show! This helps us support more people — just like you — move toward the financial futures that they desire. Click here to let us know what you loved most about the episode!
Also, if you haven’t done so already, follow the podcast. We’re sharing the best tips, tricks, and secrets in owning your own time so achieving financial freedom early and permanently becomes easier. Follow now!
Comments +