Inflation is still a hot topic in the U.S., even though it’s slowly starting to cool off. With prices soaring in 2021 and 2022, hitting a 40-year high of 9.1% in June 2022, people started looking for reasons behind it. Some pointed to increased consumer spending, rising labor costs, supply chain problems, and government policies.
But if Milton Friedman, the Nobel Prize-winning economist, were around today, he’d probably simplify it: “Inflation is made in Washington.” He believed that only the government could create money and that too much spending and money printing caused inflation. Many people are still sharing his thoughts, including Senator Rand Paul, who posted a clip of Friedman’s speech on X (formerly Twitter), which quickly gained millions of views. Even Elon Musk jumped in, agreeing with a simple “100%” emoji.
Tackling Inflation: What Can You Do?
While inflation has made everything feel more expensive, there are ways to shield yourself from it. Elon Musk, in fact, shared some advice back in 2022, suggesting that when inflation is high, it’s better to own physical things, like property or stocks, than hold onto cash.
Let’s break down a couple of options.
Real Estate: A Safe Bet
Real estate is a tried-and-true way to beat inflation. As the costs of materials and labor rise, the price of new properties goes up, making existing properties more valuable. Plus, owning real estate can bring in rental income, which often rises with inflation.
Over the last five years, home prices in the U.S. have jumped more than 50%, according to the S&P Case-Shiller Home Price Index.
The catch? Real estate can be expensive, especially with high mortgage rates today. But the good news is you don’t have to buy a whole property to start investing. Crowdfunding platforms like Arrived let you invest in rental properties without hefty down payments or the hassle of being a landlord. Simply pick a property you like, buy shares, and enjoy rental income without lifting a finger.
Another platform, Fundrise, lets you start investing in real estate with as little as $10. With Fundrise, you can invest in everything from single-family homes to multifamily units and industrial properties, all from the comfort of your home.
Stocks: Building Wealth
Stocks are another great way to protect your wealth during inflation. Billionaires like Musk know this well. In fact, a report by Oxfam revealed that the world’s billionaires got $3.3 trillion richer between 2020 and 2022, thanks in part to rising prices. Companies that can pass higher costs onto consumers often keep their profits growing, which could mean higher stock prices.
But you don’t need billions to get in on the action. Platforms like Public let you invest in fractional shares of stocks with as little as $10. You can choose companies that align with your values and goals, all with zero commissions.
Of course, not all stocks are equal. To help make smart choices, tools like Moby offer expert analysis and market insights to help you pick the best investments.
Getting Professional Help
If navigating all this still feels overwhelming, you can always reach out to a financial advisor. Platforms like Advisor.com connect you with vetted financial experts who can help guide you through making the best choices for your future. You can even schedule a free consultation with no obligation to hire anyone.
In the end, everyone’s financial journey is unique, and figuring out how to protect yourself from inflation depends on your goals, risk tolerance, and personal situation. But with a bit of guidance, you can make confident decisions to secure your financial future.
