Neil tackles the hot topic of the moment, the dreaded inflation. It is the true enemy of savings and the economy in general, but is it all bad?

 

KEY TAKEAWAYS

•  Inflation is the rate of increase in prices over a given period of time. Often referred to as the ‘cost of living’.
• Vast quantities of currency being dumped into the economy by our Government helped create inflation. 
• If you have your savings in an account with interest that does not surpass the inflation level, your savings, in real buying terms, will be decreasing in value.
• The value of any debt you have will be halved and if that debt is financing income producing assets such as rental income you are reasonably protected from inflation.

 

BEST MOMENTS

‘Generally speaking, governments and central banks aim to control inflation, but they’re often the greatest causes of it. For example, when the supply of money outpaces economic growth.’

‘Inflation is bad news for savers, and the higher the rebate of inflation the worse it is. This leads to glib little phrases like ‘cash is trash’’

‘So as an investor and a business person I like inflation, as a private individual I dislike it a great deal.’

 

VALUABLE RESOURCES

The Tutor Podcast

www.Neilcowmeadow.com

 

ABOUT THE HOST

Neil Cowmeadow is a maverick peripatetic guitar teacher from Telford with over 19 years’ experience in the business of helping people. Learn how to start, grow and love your business with Neil’s invaluable advice and tips without the buzzwords and BS!

 

CONTACT METHOD

[email protected]