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Inflation Trades/ Your first defense against inflation is: Inflation Proof Income

Inflation Trades 101

By Nate Plissken

Inflation Proof Income, the Essential Investment For The Middle-Class During Inflationary times.  

Inflation may not be transitory but your income could be. The working-poor and the middle-class and the poor and elderly on fixed incomes are the groups of people that are hit the hardest by inflation.

Investments like, gold and silver, and real estate with low 30 year fixed mortgages, and specific foreign and domestic publicly traded stocks, and physical investments may hold their value and appreciate during times of massive stagflation or even hyper-inflation but is there part of the puzzle that is not being addressed?

For the working-poor and middle-class and especially fixed incomes, not to mention the very poor, investing in assets may be futile if they do not have this first! — INFLATION PROOF INCOME.

Why inflation-proof income? If you go through times of heavy inflation and you invest in safe inflation-proof assets like gold but do not have inflation-proof income you could be forced to sell your investments at a loss in order to pay your rent or mortgage or for food or medical expenses.

With rising food and housing costs all around the United States and lagging wages the poor and middle class are getting wiped out and crushed. It’s not even a question of if they will be punished by inflation, it’s just how badly will they be?

If history is any predictor of the future, inflation is going to cause some businesses to go out of business and cut back on their staff, while other businesses may continue to grow. Yes gold and silver are inflation hedges and so are some stocks but as prices for everything raise and wages do not, how will you buy more gold and silver or inflationary investments, when cash is losing its value? How will you keep from selling the portfolio of sound investments you have now?

The answer is inflation proof income, without it no other strategy will work, in my humble opinion, for the poor and middle class.

What is inflation proof income? Let’s start by what it is not, non-inflation-proof income is any income that you do not have control over and that is not scalable. That would mean income from a job. 

Employee income has four clear weaknesses:

  1. You could be fired or laid off at any time.
  2. You do not have direct control over raising your income to match inflation.
  3. Lack of mobility. If you are in a job you cannot take your job (in most cases) and move that job to a place where inflation is less impacted
  4. It is limited and not scalable. If you are earning your max pay in your profession congratulations by the way you are a winner, but after working so many hours you can’t work more than 24 hours  a day and you can’t do that very long.

My warning is that when times get difficult and they probably will, traditional workers will get screwed. So what is Inflation Proof Income and how do you get it? 

  1. It’s simply minding your own business, scalable businesses, preferably online.
  2. Investment Income. (And if you have enough of this you are not in the poor and middle-class category)

Some examples for the number 1 category are becoming a Youtube content creator, or a podcaster, an online business that you can scale like online arbitrage, Direct Publishing, Affiliate Marketing or any number of businesses that you can sell products  and services online. Which one doesn’t matter, it only depends on your skills and interest.

The wealthy in general all own and operate businesses and they hire employees. There are high paid employees, like CEOs. CFOs, MDs, Attorneys and more. But the wealthy are Business Owners and Investors. All tax breaks are set up for the wealthy, so just a clue, do what they do.

I am not here selling courses on anything but this is the real problem of our time. We live in a world of deflation and Inflation, both are happening all the time. Deflation is causing some things to go down in cost, while important things like housing and food cost and medical care and college educations are becoming increasingly expensive.

With economic hard times coming, what are you doing to protect yourself from the loss of your primary income? This is your first concern when considering what to do about inflation. Forget the gold and stockpiling food and buying bitcoin. If you lose your job and have no other income you will be selling that Bitcoin whether it is up or just lost half its value. And gold sold at  pawn shops will take losses even when it is up, usually.

What businesses are you interested in starting in 2022? Or what Business es have you already started? Please comment below on what businesses you are interested in or believe are the best businesses to own and operate during high inflation? Maybe a Gun Shop? A Mobile Home lot? Micro Farm or Nursery? Affiliate Marketing?

This book is a way to get you thinking about side hustles that you could do to earn more money and have more money to invest and or Inflationary-Proof income.
CashFlow Quadrant is the Classic book that explains why the Rich get Richer and The Poor Get poorer. it is a must read. Especially with understanding this post about Inflation Proof income.

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