The fundamental of inflation and what to do?

This week no matter in facebook, newspaper, or media we hear people start complaining again due to the recent 7% electricity tariff hike and possible hike of ron95 petrol. Most people blame the government, TNB, or anything for the problem. While I agree government should also take part of the blame, but many people fail to see the fundamental reason of inflation.

First of all, this is not only Malaysia problem, but is a global problem. If you want to understand more, I advise you read Robert Kiyosaki's The Conspiracy Of The Rich. Btw, as I know many don't bother to read and more prefer the easier way, which is complain only. I will give a brief summary on what is happening to this world.

The fundamental :

Its start with federal reserved(FED) of US keep printing their money non-stop. Which cause money losing its value rapidly. So in order our country to remain competent and continue to attract foreign investor, our country also need to print more money. So in laymen explanation, if our country print 10% more money this year, then our inflation rate will increase by 10%. This is why global commodities and raw material price increase. Which make our electricity tariff increase to because our country using mainly gas and coal to generate electricity. So what is federal reserve? Basically federal reserve bank is not owned by US. But by the ultra rich in the world. The condition will lead to the rich will get richer and the middle class and poor will get poorer.

So what if we change government? It will certainly be better as corruption and cronies problems maybe lessen. But still the fundamental problems still there as we also in capitalism and global world market.

Who to blame?

When people see all these problem, then the first thing they will do is blaming and complain. When I say problems start from ultra rich and FED, then they will start blaming them again. So at the end of the day, do you gain anything? Do your money problem solved? Our inflation rate get better? No at all. Now, the only thing that can save yourself from these problems are only two. One is God, and one is yourself. For people who doesn't believe in God, then I think you left one choice. Which is yourself to help you. For people who believe in God, I believe you know that God only will help those who willing to work. So now the answer is not who to blame, but what you want to do to solve the problem.

How to solve?

Don't ever tell me about solving using fast money such as TOTO or Gamble. As it surely won't work, and I always believe fast money is a curse rather a blessing. As I always say, we need to start build up our financial knowledge, invest in IGA or income generating asset instead of saving up your cash, increase our cash inflow by generate passive income. But these are so easy to talk. When actually doing it, so many people can't even start. Whenever I ask my friend to start financial planning. Then there are plenty of excuses :

1. I not enough money yet
2. No time
3. My income is to low
4. Wait la...
5. Investment is risky
and many more...

When government want to increase our electricity tariff and petrol, do they say :" wait lah, Bryan havent start planning his money, later he not enough money."
We have to know that inflation will never wait us, so the slower you start the worsen you got. Okay, now back to not enough money. What is not enough money actually? If you don't have rm1000, do you have at least extra rm150/month? Do you know you can even start invest by buying 1oz of silver using rm150. Just save rm5/day then you can even invest. Do not look down on a piece of 1oz silver, in 12 months u will have about rm1800 worth of silver. And in few years time, it value may multiply. The silver investment is only one of the example, what I want to point out is don't find yourself an excuse. When someone say investment is risky, then I going to quote what Robert Kiyosaki says again : "Investing itself is not risky, but lack of financial education and listen to poor financial advise is risky"

This phrase is so true, let me give an example again, from this recent electricity price rise, it again will determine a person financial intelligent. The first reaction of middle class and poor will complain. But you know what the rich and high financial intelligent people will do? They straight go and buy TNB share, and actually benefit from it. and you see what happen to TNB share in this week. TNB stock chart So there are always people who benefit from the inflation. Thats why we need to keep increase our financial knowledge and actually think like them. Financial knowledge is not build up by reading only, but you need to actually experience it, experience some failure and learn from it.

The are only 2ways to beat inflation now, which are investment or business. We have to know salary and job security won't be enough anymore. If you're lazy to involve in business, at least please start plan your money and start invest your money. And remember to have life and medical protection as they are the basic of financial planning.

Stop complaining and start planning now
If you lazy to plan for your money and increase your financial knowledge. Then don't complain anymore and continue to work day and night until inflation and taxes eat you up. This post may sound abit harsh because this is reality, the world is getting harsher each day.

Financial planning and investing is not a lesson that can be learn in a day, but it start from little amount and the amount will increase day by day when your investing knowledge and discipline increase time by time.