I’m not an economist, and I don’t have millions saved in an off-shore bank account… but I can probably give you a different outlook on how to protect your money. Why?
[tweet “Simply put, I live in a country that’s had a yearly inflation rate of 2,688,670%… and this was in January.”]
Hyper-inflation is a pain in the neck. But if you’re smart and you are open to trying new things, you learn how to go around it.
These 3 tips are used every day by Venezuelans like me to fight hyperinflation… and if they work for us, don’t you think they’ll work for you?
Without further ado, here are the 3 tricks that will help you worry less about inflation:
1- Don’t rely solely on your currency
It goes without saying, but the Venezuelan currency, the Bolivar, is pretty much worthless…
I’m not saying the same thing will happen to the US dollar or the Euro, but you have to be ready for it. The Venezuelans that were prepared for the downfall of the local currency could make decisions the rest of the population couldn’t…
So if you can’t trust your country’s currency, what do you do? Here’s the answer…
2- Invest in items with high appreciation
When you want to escape hyperinflation, you can’t save money. You need to buy things.
So, one thing we Venezuelans do is invest whatever money we have into items whose value will go up over time. Things like cars, furniture, gold, and real estate.
This is way better than just leaving your money sitting passively in a bank account.
3- Invest in “almost-passive” income opportunities
Here’s an example:
Outside the capital, you can still find businesses who only take cash because they don’t have Point Of Sale machines (that would help them accept credit and debit cards).
So what some people do is they buy several of these Point Of Sales machines and lease them to businesses for a percentage of their daily revenue.
This is what I call “almost-passive” income because there’s still some work involved like weekly checkups to make sure everything’s working correctly.
But these are great ways to surpass inflation with little work.
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Omar Cagua is a direct response marketing consultant and copywriter who’s worked with startups and 8-figure companies alike. The 20+ years he lived in Venezuela make him a defender of the free market.