Let’s say for example today you loan me $50.00 to buy groceries which include bread, fruit and meat because I have to eat today. Then a year later from today I pay you back that $50.00 you lent me and then you go to the same grocery store I went to a year ago to buy the same kind of groceries including that same bread, fruit and meat. For the point of this exercise there is not really a difference in the grocery items just so I can make the point of this comparison. When you go back you only buy say $40.00 worth of the same type of groceries with the same $50.00 bill that I just gave you in return. I know this might be an oversimplification of inflation but I hope you get the point. So now you might be asking yourself. How do I protect myself from this thing called inflation? Well there are numerous alternative investments in how you can protect yourself from inflation, so you don’t go home with less groceries with that same $50 bill you have in your bank account today a year from today. Alternative investments include precious metals like gold and silver. Another alternative investment is real estate. Real estate as a rental portfolio where you have people paying rents that will keep rising as well as with inflation. Where I like to focus on is multifamily rentals or apartment buildings. I prefer multifamily building because of the tax advantages and scalability they provide to build a solid rental portfolio. There are various ways to invest in multifamily. You can buy one yourself, you can invest in a joint venture or syndication. I’ll cover these in detail in future videos.