Inflation is one of the main problems and one of the worst woes of many people. In my own country, the economy is incredibly poor and the people in here are literally facing one of the worst times of their lives. This is because their salaries are low and inflation is increasing and this is making it so hard to deal with issues such as poverty. So, do you think that passive income could help deal with such kind of problems? If yes, then how could it help?
How Passive Income Can Help Combat Inflation?
- Thread starter Passiveearner
- Start date
Passive Incomes are the most better ways in combating the ongoing inflation in our lives. This is because the money earned is as a result of an investment which was made along time ago when there was no inflation at all.
There's less worries and insecurities once having a passive income. It's very beneficial this time of you started it in the past when prices are not like today going up almost everyday. How good of you have now a building for rent or land for rent. They're good passive income.
Provided that a passive income generation scheme is not part of a person's main avenue to generating income, it can serve as an important buffer against the vagaries of inflation. In that case, the incoming passive income would help to supplement one's main income.
- Thread starter
- #9
Passive income could help deal with problems like inflation because it helps you increase your purchasing power. This is a great way to deal with issues such as inflation that may be causing issues.
When we were child one family member (my father) was working and all of us were enjoying the life, now all family members are working but people are not able to meet their necessities, and after there work they need to generate some sources of passive income, the inflation is all time high.
Compared with just putting money in the bank's savings account, Investment in gold and other instruments such as stock, mutual funds may help to combat inflation. The value of gold or your stock my appreciate and the dividends you receive help to increase your earnings.
Investing in gold and other financial instruments like stocks and mutual funds can help combat inflation when compared to simply putting money in a bank’s savings account. Their value appreciation can help protect an investor’s wealth from the eroding effects of inflation.
