Inflationproofing your money

[gibbslets]

I have a predicament and I'm sure this is shared by others; you need a source of liquid cash, yet the minute your paycheck hits your bank account, it is worth less. Are there any ways to get around this? I've heard of crypto debit cards or bank accounts and the kinesis gold thing null links at the bottom of the page, but I'm not sure what to trust here, I've stopped trusting anything not said on an old forum or in real life due to the internet now being populated by sub-80s, shills and bots. Have any of you tried using non-traditional banking day-to-day, does it inconvenience your life, has it made it any better? I'm aware a lot of the function is negated by its non-custodial nature, at least you own it more than any cent you could put in a bank.

 

[gagabobo1997]

I've heard you can setup paycheck deposits to cashapp that gets turned into bitcoin for basically no fees, i've never done it though so no clue. Then you can just send it to your self custody BTC wallet.
As for needing liquid cash, just keep some cash on hand. Anything that doesn't need to be as liquid you can put in crypto or stocks or precious metals. You want your wealth to be resistant to inflation, not your spending money.

 

[gibbslets]

I've currently got all my money in money markets, save for my liquid cash about 1000usd, inflation's been moving fast recently though so I've gotten more paranoid to the point of considering total conversion. In a us-centric context, maybe one should buy t bills or bonds, but my dad never taught me any of that

 

[Rootless Cosmopolitan]

Right now, there are a lot of HYSAs that pay more than inflation. I put my money into those. It’s a bit of a pain because transferring it back into your checking account takes a few days, but just set a reminder to do it at the end of the month so you have enough in your checking account to cover your bills

 

[Drone]

It's all markets all the way down. The lines are always oscillating up and down. National currencies in particular are doomed to always go down due to inflation. There's no such thing as inflationproofing, only outpacing the rate of inflation. Good news, though: outpacing that inflation is pretty easy.

In the US, quite a few credit unions offer high-yield savings accounts that feature APY rates guaranteed to put you ahead of annual inflation. If your savings are too large, though, then you're gonna have to put up with the bullshit of banks if you want some good APY rates.

Outside of that, there's also the route of investing. You're gonna want to do a lot of research before dipping your toes into investments. There's no such thing as a stable investment (cryptocurrencies are an infamous example of asset volatility). There's an entire forum category dedicated to money, investments, and other potential financial decisions. The advice there varies quite heavily in quality, so you'll absolutely want to take everything you read there with a grain of salt. Regardless, it's good reading if you wanna dip your toes into investments.

 

[Cirrhosis_of_Liver]

1000usd,

That's a perfectly fine amount of fiat funny money to have. If it loses ten percent of its value over a year, that's what, 27 cents a day? It's very useful to have enough USD to cover your monthly bills.

Now, boomers sitting around with 100k in their bank accounts "for safety," yeah that's a bit frustrating.

 

[gibbslets]

That's a perfectly fine amount of fiat funny money to have. If it loses ten percent of its value over a year, that's what, 27 cents a day? It's very useful to have enough USD to cover your monthly bills.

Now, boomers sitting around with 100k in their bank accounts "for safety," yeah that's a bit frustrating.

I apologize for being a third worlder, but the chart I gave was in Rand, not USD. I did conversions in mathematica so it's easier to understand, I've lost between 30 and 5 dollars of value for that, not bad now, but I don't see it getting any better. So far I've been siphoning to American money markets but am still wondering what'd be a better alternative on the daily.

1000USD(2023)->Rand(2023)

Rand(Avg)->USD(2024)

1000USD(2024)->Rand(2024)

Outside of that, there's also the route of investing. You're gonna want to do a lot of research before dipping your toes into investments. There's no such thing as a stable investment (cryptocurrencies are an infamous example of asset volatility). There's an entire forum category dedicated to money, investments, and other potential financial decisions. The advice there varies quite heavily in quality, so you'll absolutely want to take everything you read there with a grain of salt. Regardless, it's good reading if you wanna dip your toes into investments.

Thank you for this, I'll take a looksee what American assets I can buy to keep my money valuable. I've already got most of it there, just wondering if I could have my liquid cash there as well.

 

[Andrew Jackson]

Right now, there are a lot of HYSAs that pay more than inflation. I put my money into those. It’s a bit of a pain because transferring it back into your checking account takes a few days, but just set a reminder to do it at the end of the month so you have enough in your checking account to cover your bills

There is no way that a HYSA, which yields you 4.5-5.5% at best is beating inflation.. Unless you actually believe the government's official numbers.

 

[gibbslets]

There is no way that a HYSA, which yields you 4.5-5.5% at best is beating inflation.. Unless you actually believe the government's official numbers.

at the moment most of the money is in money markets, which may not be much better. I'm also not as tuned into what the hell's the matter with the US right now (beyond lolcows) so I could just be throwing all my money over the wall into a flaming bin. I'm aware of the physical reality of groceries and all, but am not sure about the high-level trickery. If only there was a country I could trust. Maybe shekels

 

[Town Drunk]

I've asked this question before (as in what gold buying isn't a scam)

My takeaway was invest in utilities. People will always need electricity. It may not be the largest growth, but it will never go down

 

[TerribleUser09]

Buy things.
If money value depreciates faster than goods, then obtaining commodities is far more profitable than saving money. Also, if there are any tax breaks for buying "eco" stuff I would also recommend it.

 

[Unarmed Gunman]

Buy bullets?

In a SHTF scenario, what would be more valuable than that?

 

[gibbslets]

Buy bullets?

In a SHTF scenario, what would be more valuable than that?

I joke with a lad every now and then that the only thing valuable left in 5 years will be bullets and booze

 

[Major]

Just setup automatic transfers to your investment account. We get a tax free allowance every year for investments. I have a fund that gives about 7% a year

 

[gibbslets]

Just setup automatic transfers to your investment account. We get a tax free allowance every year for investments. I have a fund that gives about 7% a year

TAX FREE BABY
thank you

 

[TheRedChair]

I've currently got all my money in money markets, save for my liquid cash about 1000usd, inflation's been moving fast recently though so I've gotten more paranoid to the point of considering total conversion. In a us-centric context, maybe one should buy t bills or bonds, but my dad never taught me any of that

This is what I do. Well mostly. MM's, CD's , Treasuries and Cash on hand.
I've got enough tax right off to not pay taxes and a good accountant to handle the rest.

 

[reptile baht spaniard rid]

hyperinflation is a topic that has been studied and experienced, and people quickly work out that you turn devaluing cash into hard assets as fast as possible

what does that mean? you run from the pay office to the bank to get cash to run to the store and buy anything, everything that won't perish by the time you need it because it's effectively a discount because the cash will be worth less tomorrow

if you're in venezuela right now you try to convert your cash into dollars by any means but those are often also not great, so try to spend it as fast as possible

if you're in the USA preparing for kamalaflation, you convert your cash into hard assets like real estate, or even stocks potentially

but the best use is pre-paying expenses that you can and know you'll use - if you have room, stock up on toilet paper, because as long as you're alive you'll be shitting and that paper is never gonna get cheaper

learn to eat canned and dry goods like rice, and you can store 6 months or a year of food which is pre-paid and inflation proof

if you can pay today to reduce future expenses, do so - buy solar panels to reduce utility bills, pay for better insulation

if you really are gonna have mad inflation, borrow as much as you can at fixed (FIXED) rates and spend it on things that reduce future costs (borrowing at 2% to install solar that removes your electric bill entirely in 2020 would have been awesome financial move).

 

[Alexander Thaut]

hyperinflation is a topic that has been studied and experienced, and people quickly work out that you turn devaluing cash into hard assets as fast as possible

what does that mean? you run from the pay office to the bank to get cash to run to the store and buy anything, everything that won't perish by the time you need it because it's effectively a discount because the cash will be worth less tomorrow

if you're in venezuela right now you try to convert your cash into dollars by any means but those are often also not great, so try to spend it as fast as possible

if you're in the USA preparing for kamalaflation, you convert your cash into hard assets like real estate, or even stocks potentially

but the best use is pre-paying expenses that you can and know you'll use - if you have room, stock up on toilet paper, because as long as you're alive you'll be shitting and that paper is never gonna get cheaper

learn to eat canned and dry goods like rice, and you can store 6 months or a year of food which is pre-paid and inflation proof

if you can pay today to reduce future expenses, do so - buy solar panels to reduce utility bills, pay for better insulation

if you really are gonna have mad inflation, borrow as much as you can at fixed (FIXED) rates and spend it on things that reduce future costs (borrowing at 2% to install solar that removes your electric bill entirely in 2020 would have been awesome financial move).

are solar panels worth the trouble? honestly legitimately curious.

 

[reptile baht spaniard rid]

are solar panels worth the trouble? honestly legitimately curious.

Qualitative yes, especially if you do some work yourself and build it out to work when power fails. Do lots of research. But even a loan paid full installation is break even or better in many sunny markets.

 

[Alexander Thaut]

Qualitative yes, especially if you do some work yourself and build it out to work when power fails. Do lots of research. But even a loan paid full installation is break even or better in many sunny markets.

Well I do live in the sunshine state, so would it be worthwhile even with all the natural disasters? I heard Solar Panels weren't worth it due to the durability issues and the quality. That and the power companies charge a lot for maintenance and insurance fees per month.