Inflategate

I told you last week I was going to give you the breakdown on whether I decided to purchase Airbnb or Corsair Gaming stock.

That still hasn’t been decided, but when I make a decision I’ll for sure send out a write up about it.

As you might have saw on Twitter though, I did make a few purchases.

For those who don’t know QQQJ is the NASDAQ next generation 100 ETF.

Basically, it tracks smaller tech stocks that could eventually move into the NASDAQ 100. It’s attractive to me from a growth perspective.

In Other News

Inflation numbers for June were also released, highlighting that inflation was higher than expected as consumer prices rose 5.4%.

What does this exactly mean?

How does it affect your money?

Let’s get into it.

Note: If this email is appearing in your spam you can fix that by dragging it to your main inbox.

Thought this was fitting.

“A nickel ain't worth a dime anymore.” - Yogi Berra

What Is Inflation

In simplest terms inflation “is the rate at which prices for goods and services increase across an economy” (Source).

Normally an annual inflation of around 2% is expected. So that means something that costs $100 today will likely cost $102 this time next year.

It’s the same reason why 40 years ago you could buy a bottle of coke for $0.50 but now it’s $1.50.

Must have been nice.

Here is a link to a calculator that can help you understand exactly how the value of products has changed over time. Inflation calculator

History Lesson For The Day

Inflation is nothing new.

Different events have caused inflation to spike including wars, changing financials systems, or the most recent, pandemics.

Here is a cool graphic summarizing the inflation rate over the last 100 years. (Source)

What Does It Matter

No one cares about inflation until it starts to affect their money.

Rapid inflation can hurt consumers as the purchasing power of that dollar in your pocket essentially erodes.

This means that business and people have to pay more for less product over time.

As a result, the cost of living goes up which, demands wages also increase so people can maintain their standard of living.

Now you really have to cut back on your Starbucks…

How To Protect Your Benjamins

Buy assets, buy assets, buy assets.

If you don’t want the value of your money to erode, buy things that go up in value over time.

Savings accounts are great and everyone should have one, but they are famous for providing terrible interest rates that don’t keep up with inflation.

With that said here are some of the top ways people hedge against inflation.

• Gold

• Real Estate

• Stocks/Bonds/Commodities

• And yes, even Bitcoin…

Conclusion

Inflation is a natural part of our economy.

My plan of attack.

Keep a portion of my net worth invested in assets.

As long as these continue to go up over time I can trust that Mr. Benjamin Franklin will be worth the close to the same in 20 years that he is today.

So you know how I told you about M1 Finance a few weeks ago and all it’s features?

• Clean interface, Easy-to-use design, Supports fraction shares, Let’s you open both traditional and tax free accounts.

Well the deal just got sweeter.

Sign up with by clicking the link below and we will both get $50 when you deposit your first $100.

Even if you never use the platform again, which I doubt because it’s great, that’s an instant 50% return on your money.

We all need to thank Joe for this.

Thanks for reading, if you have any questions, comments, suggestions, etc. about the email send me a DM on twitter. See you next week!