Introduction: Recently, global inflationary pressure has continued to rise, and prices and currencies have depreciated, which has made people worry about the shrinking of wealth. Against this backdrop, we can't help but wonder if money will be worthless in the event of hyperinflationIn this case, what should we focus on what is most important?This article will analyze the way to preserve wealth under hyperinflation from the perspective of readers, and what we really need.
1. Currency depreciation under hyperinflation.
Hyperinflation refers to the phenomenon of a sustained high price level**, resulting in a large depreciation of the currency. In this case, the purchasing power of cash in people's hands will decline rapidly, and money will become less and less valuable. Over the past few decades, several countries around the world have experienced the pain of hyperinflation, the most famous example of which is Zimbabwe's hyperinflation at the end of the last century. At that time, Zimbabwe's inflation rate was as high as several thousand percent, causing the currency to be almost scrap paper and people's lives in dire straits.
Second, the strategy of money as a hedging of value under hyperinflation.
1.Invest in real assets.
In times of hyperinflation, money depreciates rapidly, and investing in real assets has become the preferred means of value preservation for many investors. Physical assets include real estate, jewelry, art, etc., which have a good ability to resist inflation in inflationary periods. In particular, it has been seen as a safe-haven against inflation since ancient times. Investors can participate in the market by purchasing physical goods, investing in ETFs, etc., and share the benefits brought by them.
2.Invest in inflation-resistant assets.
In addition to physical assets, some financial products with inflation-resistant properties are also worth paying attention to. For example, Inflation-Protected Securities (IPS) is a special type of bond in which the principal and interest payments are adjusted according to the inflation index, so as to achieve inflation-resistant purposes. In addition,** blue chips, in particular, which have stable performance, are also resistant to inflation to a certain extent.
3.Raise income levels.
In times of hyperinflation, raising one's own income level is also an important means of resisting inflation. By improving your skills, enriching yourself, and improving your competitiveness in the workplace, you can increase your income. In addition, investors can also focus on diversified income** such as part-time jobs, investments, etc., to increase income resilience.
3. The most important wealth under hyperinflation.
1.Healthy.
In times of hyperinflation, it is easy for people to get caught up in difficulties in their lives, and their physical and mental health is seriously affected. Therefore, maintaining health becomes the most important asset. Health is not only physical health, but also mental and spiritual health. Only by maintaining physical and mental health can we maintain a positive mindset in the face of adversity and find solutions to problems.
2.Interpersonal relationship.
In the age of inflation, relationships are even more important. An extensive network of relationships can help us find support and help in difficult situations. Good relationships help us access more information, resources, and opportunities to get through tough times together.
3.Knowledge and skills.
In times of hyperinflation, knowledge and skills are key to improving one's competitiveness. Through continuous learning and improving our professional ability and comprehensive quality, we can stand out in the workplace and strive for a better income and quality of life for ourselves.
4.Emergency reserves.
In an era of inflation, building up emergency reserves is crucial. The Emergency Reserve Fund can help us maintain our basic needs in the face of unexpected situations and provide protection against future uncertainties.
It is true that hyperinflation will put a lot of pressure on people's lives, but as long as we put our wealth in perspective and pay attention to improving our physical and mental health, relationships, knowledge and skills, we can find our own way to preserve our value in the era of inflation. Finally, please leave your views in the comment area, share your experience of how to preserve your wealth in the inflation period, and let us grow together.