Inflation – Episode 425

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[00:00] This podcast episode that we’re doing is about the I word that is affecting everyone. No, not I as in prideful being about me. I’m talking about inflation. It shows up. Oh, it’s ugly. But we’re going to talk about what to do with it. Sound like a plan? It does. And I use the word plan. I’m sorry. We’re going to have to start editing you when you do that. I know. It’s just you switch it to strategy. It sounds like a strategy. There we go. Yeah. This is an interesting one because there’s not a lot that we can do about it, but there’s two things we can be really grateful for. Okay. What are those? Life insurance premiums and mortgage payments are benefited by inflation. Can I add one more? Yeah.

[00:50] Business loans. Yes. So focus on what you can control. You cannot control inflation. In fact, nobody can even really measure it because frankly, each person’s inflation is different. Like you go through periods in your lives where other than food costs, really your lifestyle is not inflating. And then there’s other periods of your life where inflation is impacting you massively. And there’s actual inflation and there’s lifestyle inflation and neither of the lifestyle can be handled, I guess, tapped down. But the regular inflation, the only thing that is going to solve that problem, frankly, is to keep working because when you’re working, you continue to add value. You continue to get paid. That helps you overcome inflation.

[01:46] And there’s so much commentary out there about it right now because it is something that the government is impacting and it’s something that they do not do a very good job of measuring. If you need proof of that, you can go to shadowstats.com. That’ll be a fun one to have in the show notes, Spencer. Shadow stats takes things like inflation measurement and goes back to when the measurement was originally put forth and measures things the same way and then puts out the real inflation number instead of the supposed inflation number that is put out because the basket of goods and services that they measure is different today. And it’s changed numerous times since when they first put it out. And so this is one of those things.

[02:38] Make some real critical decisions and then stop worrying about it because there’s nothing that you can do about it. And so, again, those decisions are be grateful for the three things that we’ve identified that are benefited by inflation, business loans, mortgages, and life insurance premiums. And then focus on finding work that you love and doing it for as long as possible, even if it’s part time, and then set the rest aside because there’s nothing that can be done about it. You know, the nothing that can be done about it, that is a piece of mind in many ways because there’s only so much that we can do. And, you know, inflation, the example that I often go back to is looking at the money we have, you know, up until 1964, the coins, you know,

[03:30] quarters, half dollars, et cetera, had silver. That was 25 cents. Now, in 1964, quarters worth about $5. That’s that the loan is a pretty clear example of what’s going on. So the inflation piece, you mentioned life insurance premiums, mortgages. What should people be doing right now when it comes to mortgages? Is it a good time to get a mortgage? Is it a good time to get a life insurance premium? What do you think? Good time to get both mortgage interest rates are low and that’s valuable. You want to lock those in and get fixed rates. And life insurance is always a good time. As long as there’s extra cash flow, it’s a good time to buy life insurance. If there’s not extra cash flow, you would want to be buying convertible

[04:18] term insurance so that you could switch or convert into whole life and lock that premium in, whereas term insurance is going to rise at some point, either annually or every 10 years, every 30 years, what have you. And then I would say the same for business loans. We talked a couple of weeks ago about Wells Fargo taking away all the lines of credits, but there are still plenty of banks out there that are lending to businesses, and so we just did a podcast, a blog post on how important it is that everybody own a business in some form or fashion. And there’s absolutely money available to create said businesses. And you can do so with a bit of time and even a smaller bit of money in the online manner that so many are available with today.

[05:08] And then that gives you so many tax benefits. That’s so valuable in so many ways. So maybe we can include it just last week’s blog post in the show notes as well. Absolutely. You know, as we wrap up here, one thing to notice is that we weren’t predicting what’s going to happen with inflation and we weren’t even talking about this in a negative light. What we did talk about it is through a prosperity lens. We thought about it a lot more strategically and said, Hey, right now, maybe a good time for life insurance premiums, lock that in or mortgages, or for us to look at it and say, yes, some things have gone up in cost or in prices. We’ll say, and we just have to approach it differently. We have to have an abundance mindset.

[05:50] So again, this was a short episode, but I think really hopeful for listeners because right now it’s easy to get distracted by the news cycle. And it’s easy for people to become overwhelmed, but I’ll tell you what else. It’s easy for people to tune into good information like this. So any parting words right before we split your input determines your output. I’m quoting Zig Ziglar. Let me see if I can get the second half and your output determines your outlook pretty cool. Your input determines your outlook. You’re sorry, your input determines your output and your output determines your outlook. I love it. That’s so good. Thank you for another wonderful episode. Thank you for listening to the Prosperity Podcast to take control of

[06:45] your money and have it work for you. Visit us at partnersforprosperity.com. If you liked this episode, make sure you subscribe and leave a review.