How to protect your money from economic inflation

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Many of us did not own our money until after time and great effort to make it, which in turn will secure us protection, well-being and a future for us and our children. Today, after the successive negative news of inflation from different parts of the world, it affected our money negatively and became in itself a source of concern for us and occupied a large part of our time in how to Its protection and development in these circumstances. This global inflation has led to raising interest rates from global central banks, led by the US Federal Reserve, to fight inflation so that central banks can control it, and fears by a large percentage of international financial experts of an economic recession all over the world, and this in turn will lead to an increase The unemployment rate, because inflation means an increase in prices due to the high demand for all products and services. As for stagnation, it is the most dangerous because it means price stability, but a significant decrease in demand and thus in manufacturing, which in turn will increase unemployment rates and will negatively affect financial liquidity. From it, we find that financial liquidity or liquid funds will be subject to losing their purchasing power due to high inflation rates, and their purchasing power will decrease with the passage of time.. Therefore, a solution must be found that protects our liquid funds.

Is the solution in the stock markets

 Some will say stock markets and well-known global companies are the solution! ..But according to what we have seen of the global stock market, many giant companies, for example: Microsoft, Google, and Tesla, beloved by everyone, have lost their market value and shares in rates exceeding more than a third of what they were in the past. A father whose shares lost more than 60% in one year, and its owner, Mark Zuckerberg, lost half of his wealth during the last year only. All this happened in just one year. Can you accept losing a third or half of your money if you want to invest in shares in just one year?

Are digital currencies the perfect solution

A few fans of modernity say that digital currencies are the perfect solution to keep my money from inflation. Despite the great disagreement about the credibility of digital currencies and doubts about their ability to actually prove themselves on the ground without having fixed assets for them and no clear party to represent them, they have proven their complete failure in Confronting inflation and achieving a truly frightening decline, as happened to the most prominent digital currencies, which is Bitcoin, which lost 65% of its value per piece against the dollar in just one year!!

Do we have permission for the safe metal … gold

This idea seems convincing, as it has been known since ancient times that gold is the safe way to save money in periods of wars, conflicts and instability, but today’s problem is a completely different problem, which is global inflation, which in turn gives more strength to the US dollar, and it is known that the price of gold is inversely proportional With the US dollar, the greater the value of the dollar, the lower the price of gold, and this is exactly what happened in the year 2022 during the months between May to November, when the price of an ounce of gold fell from about $1900 to $1650, i.e. a loss equivalent to approximately 13%, and this is a disaster in itself for investment. Even Those who say we invest in gold in the long term will surely win. We would like to say that gold prices in late 2011 were higher than the price of gold in late 2018. This means that long-term investment is also not feasible and safe at times, especially in the last ten years. .

 So what do I do to keep my money

 The right approach in these circumstances must first focus on preserving the value of money without losing basically, and then try to develop it, even in a simple way, and if we think about the safest type of investment, we will immediately find that buying real estate or investment lands is the best solution … the evidence However, real estate or land is the best option for preserving money when you want to mortgage property in the bank to obtain a loan, for example, as it accepts title deeds (Tapu) for real estate or land and does not accept financial shares or digital currencies. Also, if you ask for a loan from the bank and justify the reason with your desire By buying shares in the bank itself! You will not get the loan, but if the reason is to buy real estate or land, your application will be treated more positively. There is no need to doubt today the ability of real estate and land to maintain financial liquidity from inflation by focusing on buying real estate or land at discounted prices at the present time due to the pressures caused by inflation on the efficiency of bank loans for investments, including loans for the purchase of real estate and land after the increase in interest rates. This means that real estate or land today is the best option on the table in light of inflation and potential recession.

MBANY Real Estate is ready to provide you with many and varied options regarding real estate investments and lands in Turkey, as we have special offers of lands, projects or resale apartments as well.

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