Cost of Living Soaring (& Getting Worse) 🤔😳

Cost of living is soaring. Prices are soaring. I don't think we've seen anything like this for decades. In fact, according to the BBC, inflation is at its highest for a decade— 4.2%, up from 3.2% in not long, like in weeks. and many people think that it's going to rise to over 5%. I'll share with you the reasons that prices are soaring and what you can do about it. I am known to rant a bit about things that I believe that are wrong, but I also like to give you solutions. The solutions are vital. Now, friend, a friend of mine called Grant Cardone, you may know him, Grant Cardone, he spoke at our 2019 Property Super Conference and he kept saying, cash is trash, cash is trash. And I must admit, I wasn't fully sure about that. I've since studied many billionaires who've been saying that cash is trash. Now, I always thought it's good to have cash as a backup. I always thought it was good to have savings, good to have an emergency fund, etc. But as inflation goes up and interest rates stay low, cash is devaluing at an ever-increasing rate. It is a major concern. You need to protect your cash. So I'll come back to that and some solutions, some solutions. But inflation is at its highest in around 10 years in the UK. I'm told it's up to its highest in nearly 20 years in the US. It's 4.2% in October. This is due to rising fuel costs, rising energy costs, and other increases in costs of living. Secondhand costs for cars have gone up through the roof. The supply chain has been completely constricted because of lockdown. Therefore, there's a lack of build or supply. And our doors and windows and suppliers in our properties that we're developing, they've put prices up 50, 60, or 70%, complaining that their wholesalers have put prices up on them. Nearly 100%. I've not seen anything like this for a long, long time. We must discuss this and we must prepare for this. Please hit the share button. Let's get this out to as many people as possible. So the Consumer Price Index measure of inflation is now more than double the Bank of England's target. The Bank of England said it may have to increase interest rates. So if you think about it from a cash perspective, We've always been told cash is king. I've been saying for years cash is not king, cash flow is king. And now more than ever, it's becoming a self-fulfilling prophecy. The reason cash isn't king is because if inflation is 5% that they're telling us, in reality it could be double digits. You know, your suppliers are putting prices up, your cost of living for fuel And food and energy is going up and up and up. Um, I saw statistics of wholesalers putting prices of energy up 400%, so that was always going to cascade down to the consumer. And us, the consumer, loses out. Our energy bills, um, you know, our heat and electric are obviously going to feel the impact of that and go up. Food's gone up a lot. I mean, if any of you are trying to buy a car, car prices have gone crazy. Secondhand and therefore new supply of new cars is limited, therefore secondhand market goes crazy, therefore prices go up due to supply and demand. Watches— I had a Richard Mille RM 11, sold it for 90-odd grand, made on it. They're now 230 grand. I had an Audemars Piguet Perpetual, sold it for 65, made on it. It's now 120 grand because of dramatic limited supply. So inflation— the CPI, the Consumer Price Index of inflation, is 4.2%. In reality, surely our cost of living has gone up more than 4.2%. Um, it's predicted to go up to 5% plus. This was driven by increased household energy bills due to the price cap hike, a rise in the cost of secondhand cars and fuel, as well as higher prices in restaurants and hotels. I've seen prices of things that I was paying £200 for 5 years ago and now £450. Wow. So Sir John Gieve, a former member of the Bank of England's Monetary Policy Committee, said the 4.2% inflation rate was a little bit higher than the Bank of England were forecasting or expecting. But the key point, that it's not thought to be a one-off. So prepare yourself for increases in inflation and prices probably not finished going up. If you're an entrepreneur, if you run a business and you're having to take the hit of your suppliers and your contractors banging up the prices to you 10%, 20%, 50%, then you've got to react in kind, which means you've either got to reduce your costs, and that's hard when costs are going up, or you've got to increase your prices. But the problem is when you increase your prices, the consumers get hit because cost of living is going up, yet prices are going up. So we've got some self-fulfilling prophecies of challenge and doom here. So what can you do about it? Well, if you are a business owner, you're going to have to put your prices up. Really, this tells me prices have got to go up 5% a year minimum if you are a business owner. Um, Rolex put their prices up 5 to 8% a year. I And I always just used to think that was something to do with the brand heritage. I realize now they've got to do that just to keep up with the increase in the cost of their materials and suppliers. So that's one thing you've got to do. The next thing is you've got to protect your cash. So this is a warning for everyone. Please hit the share button. Everybody needs to know this. You must protect your cash. If cash is sat in the bank, not much of it is guaranteed by the banks. Which tell you how much the banks really value your cash. But they want it in there. The banks want your cash so they can lend it out 10-to-1 factor. But you have to take your cash and invest it into assets that produce recurring income, because cash used to be king, but now cash flow is king. So take your cash, invest it wisely into assets, build recurring revenue streams from your cash and then live off the income, not the cash, because inflation is eroding it right down. Interest rates are virtually zero, which means you're getting no return. And then you've got your own emotional spending, your own irregular shocks, and all of a sudden everything is eroding your cash. Whereas if you take your cash and your resources of time, energy, skills, enthusiasm, etc., you take these resources, you preserve and protect your capital by putting into assets Now, if you put your capital into assets, though, your capital is protected. It can't go down. The assets, especially things like real estate, will go up. So the value of your capital will go up. The capital will be leveraged against good debt, and then you'll earn on the full value of the asset, not just your cash. And then you'll get rental and recurring income streams. So my business partner and I have 7 figures in recurring income coming in, which means even if you don't earn lumps of cash or capital You've got the ongoing residual income, and then you're protected from very high inflation, um, you're protected from irregular shocks, you're protected from emotional spending, etc. These tips are vital. Cash is no longer king. Cash flow is king. So please do everybody you know a favor and hit the share button. We need to get this message out to the masses, otherwise people are going to get hurt post-COVID, post-lockdown. Why? Because if you imagine that there's no supply chain for an entire year, there's no production of anything, that has a massive knock-on effect of dramatic undersupply of everything. So then when you have undersupply and overdemand, you have price increases. Now, this is only just starting to release itself, become unconstipated. So the knock-on effect is dramatic. And of course, the government debt goes up and up and up. The government print the money to reduce their debt and try and fuel up the economy. The government get into more debt, they print more money, and therefore your money becomes worth less due to an oversupply of money— inflation. So this could probably be double digits in reality. So please take this as a stark warning. Invest your cash in assets. Put it in something that'll appreciate. Put it in something that will produce recurring income. They could be physical assets like real estate. They could be digital assets like your personal brand, like, um, unlocking monetization tools on social media, like building your own subscription membership site like Netflix. Netflix are pretty protected from inflation because they have 193 million subscribers paying $10, $20-odd a month, billions in recurring income. That is relentless income coming in. Cash is not king, cash flow is king. Those billions in relentless residual and recurring income is what protects them from massive increase in, in prices and cost of living. Um, and here's the thing, you protect yourself from your own spending habits. Like, if you've got recurring income and you have a nice big lump that comes in on the first of the month from all your subscribers and all your tenants, and you go a bit mad and and crazy, and you spend it all. Next month the money comes in again, you spend it all. Next month the money comes in again. Cash is not king. Cash is trash. Cash flow is king. Inflation is high, interest rates are low. The bank don't guarantee your money, but the bank want your money so the bank can make 10 to 1 lending out on your money. You need to protect your cash, protect yourself. You need to get real about how high inflation really is. You know, you can look at all these statistics So I've got here the Consumer Price Index. The Bank of England target, 2%. Previous— what were we? Previous month, 3.2%. Current month, 4.2%. Predicted, 5%. But that's what they tell you, and that's what they want you to know. Has your food gone up 4.2%? No, it's gone up way more. Has your energy gone up 4.2%? No, it's gone up way more. Has your fuel gone up 4.2%? No, it's gone up way more. And to counteract that, who's dropped your prices? Where can you now buy cheaper than you used to? You never can. It's like the government, they increase tax, increase tax, increase tax, increase tax, but they don't decrease tax anywhere. There was this ridiculous proposal by the Democrats in America to tax billionaires on paper gains, i.e., if your stock value goes up, we're going to tax you. On paper gains, which is ridiculous because taxation should only be on realised gains. Money is not real until it's in the bank, it's paper. Next they'll be taxing your thoughts. Oh, you had a thought to make money. Oh, you had a money-making idea. Oh, I'm gonna tax you 40% on that thought. That's what's coming next. Jesus. But what this proposal did not do is did not offer a tax rebate if the value drops. So Stock prices can go up, stock prices can go down. The Democrats, they suggest, oh, on the upward paper increase, which can be, by the way, manipulated, and then it can be outside, you know, economic forces, nothing to actually to do with the performance of the company. So it goes up, we tax you 40% on that. It goes down, we don't give you a rebate. I mean, ridiculous. So what the reason I wanted to do this video is a warning and a lesson or a solution. I like to do those warnings and solutions. Um, I'm an optimistic guy. I like to think glass half full, but you must prepare for the worst as well as expect the best. So inflation is way more than 4.2%. I reckon with the cost of everything going on— cars, assets, food, energy, travel, restaurants, hotels— I mean, I remember when a good hotel in London was £100 a night. Now good hotels in London are £650 or £709. What? So what can you do? One, get real and expect the inflation is way more than they tell you. Two, expect interest rates to rise but not in line. Three, protect your cash from inflation. Cash is probably 10% a year now going down. I would say, maybe more, who knows. Invest in assets, protect your cash, use your cash to create recurring income, digital assets as well as physical assets, live off the income and protect the capital. That's what you can do to fix this problem. So I can see a lot of comments coming in. Let me know what your thoughts are in the comments. Let's discuss this. Have you got any data and research? What do you think inflation really is at? What do you think in this dramatic cost an increase in living? Do you think this is a bubble that will burst? You know, watch prices have gone mad, and, and people are— now this is the new, new level. Now I just think this, this bubble of massive watch prices, of massive car prices, of massive real estate prices, I think it's got to burst. Now I read, but I read something by Ray Dalio, and, and I've seen other really well experienced billionaire investors say the same thing. So, um, I interviewed, um, a billionaire a couple of weeks ago on my podcast, The Disruptive Entrepreneur. Um, I've, I've heard Howard Marks say this, I've heard Ray Dalio say this: people think that the volatility of the extreme highs and the three— the extreme lows, they think that's abnormal or a bubble. But actually, the billionaire Ray Dalio, they would say the peaks and the troughs, the volatilities of the market are normal. What goes up must come down. That's the law of physics. So I believe, and I can't say this for sure, it's just my belief, I've never seen watch prices so high, I've never seen car prices so high, I've never seen property prices so high. There has to be some kind of correction soon. It— whether it's a bubble or it's just how the market is now and it's just more volatile, There has to be a correction, I believe, at some point, and you want to be ready and you want to be liquid. Now, by the way, cash isn't always trash, because if there's a correction, a crash, the market comes down, cash is not going to be trash. Cash is going to be king again because cash can hoover up all the assets. So at the moment, cash is becoming trash. At the moment, cash is being eroded by inflation. Cash is probably the worst investment other than, you know, a gamble or an addiction. Other than that, it's not as good as precious metals, it's not as good as real estate, watches, it's not as good as many digital assets. Pound for pound, of course you've got to know what you're doing, but when there's blood on the streets and assets have halved in value, cash becomes king again. I was liquid in 2008. I was buying Rolex Daytonas for £5,500 that are now £30,000. I was buying properties for 50 and 60 grand, and now 150 or 200 grand. There's going to be blood on the streets sometime soon. This cannot go on forever. What goes up must come down. Even Viagra only temporarily changes that. It still must come down. There's Viagra in the markets. It's going to wear off at some point soon. Let me know what you're thinking on this. Let me know what you think real inflation is. Let me know what you think about cash being trash and Cash not being king, but cash flow being king. Protect your cash from inflation. Diversify it into assets that produce recurring income. Protect it from your own volatility and your own emotions. The markets are emotional at the moment. People are high, people are low, people are bullish, people are bearish. It's, it's just probably the most crazy emotional market I've seen since 2008. And your own emotions can erode cash. Be careful. All right, cool. Thanks for tuning in. Hit the share button. Let's get chatting about this. Prices are soaring all over the place. It won't go on forever, but you must be careful and you must protect your cash. See you all on the other side. And, and, oh, if you don't risk anything, you risk it. I don't know why I finished with a new quote. I see you all on the other side. What does that mean? There is no other side. Remember, if you don't risk anything, you risk everything.