There’s a silent thief that steals your money.
The name of that thief is INFLATION
Inflation is a general increase in the price of goods and services.
So, what N100k could buy last year, N100k cannot buy it this year. Inflation is like an unavoidable thief that depletes the value of your money.
The current inflation rate in this country is 12.56%. So, the real value of N100k compared to the previous is:
100000 – (100000 × 12.56%)
100000 – 12560
The money that worth 100,000 now worth 87440 due to inflation.
So, how do you fight inflation?
You need to receive interest higher than the value of inflation.
How do you earn an interest higher than inflation?
- Start a business
Starting a business can help you fight against inflation because a profitable business earns an interest higher than the inflation rate.
For example, if you buy a product for 100 and sell it to make a profit of 15, you’ve earned higher than the inflation price. 15% ROI is higher than the 12.56% inflation rate.
However, some businesses can even yield a return of from 100% – 1000%.
- Invest your money.
While saving your money is a good practice, the interest rate that banks give is never higher than the inflation rate. Instead of leaving your money idle in the bank, invest it in investment vehicles that yield an ROI greater than the current inflation rate of the country.
Inflation is an enemy to building wealth; be smart enough to outearn it.
Cheers to your success in life.
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