What is it?
In short, inflation is when there is an increase in overall price. Inflation works with supply and demand. When there is a high demand for something, and if the supply is low then the overall price of the product increase.
Let’s take a real-life example: I recently saw a picture of a shelf in a grocery store that was completely empty, say the aisle was selling bread. That tells me that the demand or want of bread is high and the supply of bread is very low. This, in turn, increases the overall price of a loaf of bread!
Why is it here?
Inflation can be caused by a lot of things but the two main reasons is that there has been an increase in money production and a decrease in supply chain management. Over the last two years, 40% of the U.S. currency was printed! Think about it this way: the reason diamonds, gold, or gems are so expensive is because of how rare they are. There is a limited amount of diamonds, gold and gems so their value increases or at least stays in the same. Since money can be printed, the more money that is made the more is in circulation and less valuable it is. Since so much money was printed over the last few years the currency, or value, of the dollar has dropped. This has resulted in an increase in pricing.
The second reason, as you may know, is a backup at the ports. Hundreds of cargo ships are waiting to unload their shipping containers of materials. This has caused a huge problem in supply. Since there is a backup material are not able to be shipped on time. The ships that carry raw materials or food are waiting in the dock and food is going bad.
So, not only has the value of the U.S. dollar decreased but there are not enough supplies to keep the shelves stocked.
Now if this is a scary thought then good, it should be!
Not everything is in our control so we can only focus on what is. We have no control over how quickly the ships unload their cargo but we can fight inflation!
How to Fight Inflation
One of the best ways to fight inflation would be to earn more money. Some of the best ways to do that is to:
· Get a second job
· Start a side hustle
· Invest
Getting a second job can be time consuming and exhausting but it is possible. In order to get a second job, you will have to sacrifice family, personal or entertainment time. A second job is a great source of extra income but you will have to trade hours for dollars to do it.
A side hustle is also challenging. Depending on what side hustle you choose it will be a lot of time, dedication and concentration to get it started and maybe even maintain it. If you choose the right-side hustle you can grow your income alongside what you do with minimal extra time to set up. iquit9to5.com specializes in this time of extra income. Check out the link here to submit your information to learn more about it!
The easiest way to earn extra income is to invest. This way is the easiest but it also takes a lot of time or money to master. In order to invest and create an extra stream of income from you will either need a lot of money or a lot of time to see your money grow. The most common investment is through the stock or real estate market. You could earn income from dividends of stock or rental payments on homes.
All in all, it is a very scary world out there and the only thing we can do is best prepare ourselves.
How are you preparing to fight inflation? Leave your comments below!
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