Defeat Inflation With the Power of Having Multiple Income Streams!
Are you also finding it hard to afford things that used to be pretty affordable? Wishing you could go on vacation more often but never seem to have enough money to go as much as you'd like?
Imagine having an extra 1000 to spend or even just simply having a consistent flow of 200 extra bucks per month? What about even turning your side hustles into full fledged businesses one day? This all sounds so good.
But before you understand how to do that part, we'd like you to understand what is happening every year to people who rely on one income stream.
Unfortunately, this is called shrinkage and inflation. You might've heard of it before.
But why are the numbers so high this year in 2022 in terms of inflation and shortage percentage?
Consumers began spending more as the U.S. recovered from the COVID-19 pandemic – but supply chain problems persisted, making available inventory more valuable and costly. Wages also increased, leading companies to pass on higher costs to consumers.
Data from the Bureau of Labor Statistics shows that inflation is at its highest rate in 40 years.
With this in mind, let's take a look at a few reasons why inflation is slowing killing your earnings and why having other streams of income is absolutely essential in today's world.
Increased Inflation-
Unfortunately, the desire to spend and invest in the face of inflation tends to increase inflation, producing a potentially disastrous feedback loop. As individuals and businesses spend more quickly in order to limit the amount of time they retain their falling currency, the economy finds itself flooded with cash that no one wants. In other words, as the supply of money exceeds demand, the price of money—the purchasing power of currency—decreases at an increasing rate.
Borrowing Costs Increase-
As these examples of hyperinflation demonstrate, states have a strong incentive to keep price surges under control. For most of the past century, the approach in the United States has been to regulate inflation through monetary policy.
The Federal Reserve (the United States' central bank) does so by relying on the link between inflation and interest rates. While interest rates are low, companies and individuals can borrow cheaply to establish a business, obtain a degree, hire new employees, or buy a gleaming new yacht while interest rates are low. In other words, low interest rates encourage spending and investing, which in turn fuels inflation.
Lower Unemployment-
There is some evidence that inflation can cause unemployment to fall. Wages are "sticky," which means they vary slowly in reaction to economic events. The Great Depression, according to John Maynard Keynes, was caused in part by the downward stickiness of wages. Workers were fired instead of being laid off as a result of their refusal to accept a pay reduction.
The same process may also occur in reverse: if inflation reaches a particular level, businesses' real payroll costs decline, allowing them to hire additional workers.
Employment and growth are reduced-
Wistful discussion about the benefits of inflation may sound weird to those who recall the 1970s' economic hardships. When growth is slow, unemployment is high, and inflation is in the double digits, this is referred to as "stagflation" by a British Tory MP in 1965.
Meaning, it'll become even harder to land a solid-paying job that can handle rent costs and other living expenses comfortably.
Fiat currency becomes less valuable-
Let's say you had $100,000 sitting in your bank account and the average inflation rate was about 3% annually. That $100,000 slowly keeps getting cut by the year, so after your first year of "saving", your $100,000 becomes $97,000, and let's assume you haven't realized that the majority of people using banks to save their money hold it in their for 10 years with an average of 3% inflation.
That became a whopping loss of $30,000! All the while, the banks have been taking your money to do the real work, which is invest it and loan it out to earn even more money.
If you made it all the way through, you should realize now that relying on one stream of income isn't ideal if you'd like to vacation more than once every few years. Why not build your own brand or social media presence and build a business online?
Why not venture out and start multiple side hustles? It really doesn't matter what you choose to do, as long as you're passionate and aware of your niche. We are just trying to help you realize this simple fact.
Join our free private Telegram group to discuss more about how you can grow your own social media brand and get yourself out there to eventually accumulate some income streams!
And if you'd like to jump right in, here's a link to our eBook, "Theme Page Real Estate," where you'll learn exactly how to grow and monetize your social media accounts! If you decide to jump right in, don't hesitate to DM us on Instagram, Tiktok, or email us at info@motivatedbros.com so we can help you along your journey and achieve long-term success!