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118 – Cash Clarity: Why Is Inflation Happening NOW?

Today we’re breaking down inflation, why the heck is it so out of control?? I’ll give you a couple of strategies, but no matter what, make sure to ditch your 3 months worth of expenses just sitting in a savings account. So, let’s get to it!

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Wondering What’s Next?

Frustrated that you aren’t making the progress that you should within your finances? Create an unshakable money mindset with the Money Mindset Mastery Checklist

Why is Inflation Happening NOW?

This is the Your Money Your Life Podcast, Cash Clarity Edition, where you get a micro money tip so you can get the money in five minutes or less. I’m your host, Aimee Cerka.

After over 10 years in the personal finance industry, and multiple personal financial and medical crisis, I was fed up with the lies that are being shouted from the rooftops, by the Gurus and the media. So now I make money simple, so that you have the confidence that you need to, to handle the money thing without sacrificing your lifestyle. If you’re a female entrepreneur who wants to make more money and are ready to eliminate fear, stress, struggle, frustration and guilt, from your finances, in all the areas that they affect. You’re in the right place. Welcome. I’m so glad you’re here.

What is Inflation and Why Does it Matter?

On a recent poll, I asked what your biggest frustration is, when it comes to money. And there’s been a surge lately of a particular answer. And that answer is, I feel like we’re okay right now. But with the current situation and inflation, I’m a little concerned about the future. So today, let’s talk a little bit about inflation.

Two key things that you need to know in this video, so that you don’t have an uncertainty about the future. All right, we haven’t met, I’m Aimee Cerka, your go to money, Confidence coach for making money simple with straight to the point strategies all so that you can make more money in less time. So let’s talk about inflation.

And to do that we have to talk about like, what inflation is like surface level, right? What is the definition of inflation? According to The New York Times, inflation is the loss of purchasing power over time, it means your dollar is not going to go as far tomorrow as it did today.

Just so we’re like, clear. This is what inflation is right? But why is inflation happening? Like why now? Why are we seeing record numbers of inflation? Why are you feeling that front, in your in your back pocket, right?

The History Behind Fiat Currency

That’s because the US dollar is a fiat currency. A fiat currency means that it’s not backed by gold or anything value, it has value simply because quote, they say so there’s nothing to keep the value. And as a result, the Federal Reserve can print money whenever it wants.

So the more money that’s in circulation, the less it’s worth. And as of over a year ago, already, over half of the money that was in circulation was printed in the last 18 months. So who knows where we’re at now, right?

As they continue to print money, the less that it’s worth, and I’m not getting into like, why they’re printing money. That part’s really irrelevant, like for this conversation, because we’re talking about what you can control and what you can do. And that means you need to know why inflation is happening.

Inflation isn’t happening because they’re printing the money. And the reason why the US dollar is a fiat currency is we were removed from the gold standard, when the USSR became the world standard for like currency, world currency. There we go.

We were on the gold standard. Richard Nixon was one the officially remove the US dollar from the gold standard in 1971. There are several people out there different sides of the spectrum say that we couldn’t sustain not being on the gold standard. Regardless that check that balance that we had in place on the US dollar is no longer there.

So they’re continuing to print money, therefore, it’s worth less than it was before. So what can you do? Like, okay, great. So they’re controlling everything that kind of just feels like hopeless, Aimee, and that’s not my goal.

Diversification Strategies for Financial Security

Okay, so let’s talk a little bit about what you can do. The first thing is diversify. And at a minimum, the first thing I want you to do is stop trying to keep three to six months worth of expenses in your savings account, like that’s not an emergency fund.

That’s not practical anymore, okay? Don’t do that you’re losing money, month in and month out by doing that. But diversify.

So maybe you diversify in places, it’s not just investing in the stock market. You could also have precious metals, you could keep cash on hand. Cryptocurrency could be an option, but having things in different places. Skills for cash flow is a big one as female entrepreneurs, you need to have those skills so that you can continue to get to receive cash.

Those things are very valuable. But then we also like have the unstoppable finances framework, and this really helps you feel confident in knowing what you can do. And the unstoppable finances framework is my signature framework where we talk about the four key areas that you need to really create unstoppable finances to figure out the money thing.

Overcoming Fear and Building Confidence

And part of that is knowing why inflation is happening and how to handle it because if you are fearful of inflation, you’re not making objective decisions and decisions that are best for your interest, right? If you are not familiar with my unstoppable finances framework, just drop “framework” below. And I’ll make sure that I send you the PDF guide that I give to my clients on how to navigate inflation.

And it’s got the framework laid out there for you the step by step guide that we use. So we talked about inflation is caused by fear. We’re seeing inflation right now at record levels, because of the fiat currency and the rate, they’re continuing to print money.

But we’re not going to be fearful about that, we’re going to focus on what you can do, when you can diversify, whether this is diversifying, just not just sticking money in your checking account diversifying by not just investing in the stock market, diversifying by building other skills so that you can continue to survive in an changing world.

And really, the unstoppable finances framework just makes it all come together. And we’ll get into that in another video. But again, if you want the step by step guide, now, I don’t have a gate inflation. The guide that I give to my clients just drop “framework” below and I’ll make sure they give that to you. We’ll see you next time.

Connect with Aimee for Support

This episode originally aired on YouTube, but don’t worry, all of the resources and support options I mentioned are hanging out in the show notes for you. And of course if you have any questions, please reach out to me @aimeecerka on Instagram and that link is above as well.

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Aimee Cerka
Aimee Cerka

The Money Confidence Coach - She helps motivated women, like you create the happiness, family life, financial security, and long-term wealth they deserve. Create unstoppable finances so that when the next curveball is thrown your way... You're prepared. Click Here to Learn More

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