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[@alux] How You Can Make Inflation Work For You

· 5 min read
[@alux] Summarizer
Video Bot

@alux - "How You Can Make Inflation Work For You"

Link: https://youtu.be/krvxWxFj2CE

Short Summary​

This video explains that inflation erodes wealth, but individuals can combat it by learning high-value skills and creating income streams to invest in assets that appreciate with inflation, like real estate and businesses. The Alux app is promoted as a tool to help users develop these skills and manage their finances effectively.

Key Quotes​

Here are five quotes from the YouTube video transcript that represent valuable insights and key points:

  1. "Everyone you know, including you, is in a constant race against it. And if it catches up to you, it means you're getting poorer every single day."
  2. "You can skip the latte, cancel subscriptions, and eat rice and vegetables every day, but at some point there's nothing left to trim. Sure, budgeting has its place. Absolutely. It helps you to avoid overspending and stay organized. But people will spend hours tweaking a $40 budget and never spend 10 minutes learning how to make an extra 400 bucks. The truth is, at the end of the day, you can't shrink your way to wealth."
  3. "Education is the best hedge against inflation. Because think about it, okay? When prices rise, knowledge helps you to rise even higher."
  4. "In an inflationheavy economy, your ability to earn on demand is a superpower."
  5. "The wealthy don't fear inflation because they've positioned themselves to benefit from it. And now you know how to do the same."

Detailed Summary​

Okay, here's a detailed summary of the YouTube video transcript in bullet points, highlighting the key topics, arguments, and information discussed:

I. Introduction: The Reality of Inflation

  • Inflation is not just a buzzword; it's a constant race that impacts everyone's financial well-being.
  • If inflation outpaces your income growth, you're effectively becoming poorer.
  • The video promises to reveal how to understand inflation, why it happens, and how to use the same tools the wealthy use to stay ahead and become "ridiculously wealthy."

II. What is Inflation and Why Does it Happen?

  • Inflation is defined as the increase in prices and the decrease in the purchasing power of money. Example of $100 at the supermarket.
  • Examples of inflation's impact: sushi, concert tickets, flights have all become more expensive.
  • Analogy: Inflation is like adding water to soup, diluting its flavor. More money is chasing the same or a smaller amount of goods.
  • Causes:
    • Governments printed trillions of dollars after 2020 (quantitative easing). This increased the money supply without a corresponding increase in the supply of goods and services.
    • Pandemics, wars, and broken supply chains exacerbated the problem, leading to shortages and higher prices.
    • Examples of consequence: eggs are more expensive, and 30-year-olds can't afford homes like their grandparents could.
  • Even with a raise, if it doesn't outpace inflation, you're still losing purchasing power.

III. Four Common Mistakes People Make Regarding Inflation

  • Most people do not realize that they have to fight inflation themselves.

    1. Doing Nothing: Most people don't acknowledge or understand inflation's personal impact. Ignoring it doesn't make it disappear.
    2. Relying on Savings Accounts Alone: Savings accounts offer low interest rates (e.g., less than 1%), which are often lower than the inflation rate. Money slowly loses value even while growing slightly.
    3. Extreme Budgeting: Overfocusing on cutting small expenses without addressing the larger income problem. You can't shrink your way to wealth.
    4. Investing Without a Strategy: Jumping into investments (stocks, crypto) without a clear understanding or plan often leads to losses.

IV. A Five-Step Process to Outrun Inflation (and Profit)

  1. Invest in Yourself and Your Skills:

    • Instead of putting money directly into stocks (which are subject to market fluctuations), invest in learning a high-value skill.
    • You become the asset, increasing your earning potential, which is more resilient than market investments.
    • Learning a skill that earns an extra $5,000 a month is a significant (60x) return.
    • Education is the best hedge against inflation as it helps you "rise higher."
    • Alux App Promotion: The Alux app is presented as a tool to build valuable skills, improve financial literacy, and grow income, positioned as a "mentor in your pocket." Offers 25% off with a QR code.

  2. Build Cash Flow (Multiple Income Streams):

    • Create income streams through freelancing, content creation (YouTube, Instagram), selling digital products.
    • The goal is to earn more than you spend.
    • Having the ability to earn on-demand is a "superpower" in an inflationary economy.

  3. Invest in Assets that Appreciate with Inflation:

    • Rich people own assets (stocks, property, businesses) whose prices rise with inflation.
    • Put your money where it can grow and work for you.
    • Focus on long-term investments, such as businesses, real estate, or a well-diversified portfolio.
    • Real estate is highlighted as a good option: value tends to rise during inflation.

  4. Grow with the Growth

    • Grow skills, earn more and put it into assets whose values increase along with inflation.
    • Skills will grow the income and that money goes into assets and the value of those assets increase with inflation.
    • Everything works together to multiple the wealth.

  5. Rewrite the financial story

    • Stop being scared and start taking advantage of inflation.

V. Conclusion:

  • The wealthy benefit from inflation because they've positioned themselves to do so, and now the viewer knows how to do the same.
  • The Alux app is again promoted as a tool to level up faster and smarter.
  • Final call to action: download the app, scan the QR code, and get the discount.