Investing in Inflationary Times - Can It Be Done?

In today’s inflationary times, we’re faced with a decision - buy something and risk the value deflating in the future after the FED gets everything under control, or we can keep cash on the sideline “hoping” for a deal in the “near” future.

Personally, it is becoming more and more uncertain for us, but that doesn’t change the need to continue to grow and expand. Savings rates are 1.8% APY at most with my accounts and inflation is in excess of 7%… What does that mean? I’m losing 5% effectively saving my money.

Now, is there something to be said for having a rainy day fund? Yes! Absolutely, yes! Now, how you manage that fund, or you requirements for it will vary with individual situations. For us, I’m not keeping much in cash but storing it in an investing account to try to capture any potential market upside as things start to slowly swing back around.

Now, what are we doing with the inflation? We’re trying to buy solid cash-flowing businesses that aren’t affected by inflation necessarily. This is where things like car washes and rental properties come into play. Both will offer cash-flow and rentals in particular have the appreciation aspect to them as well.