Dear members, I am writing to you on the first Sunday of December. We are on the brink of a new year. Let’s reflect and prepare for the year of 2024.
As we reflect back, 2023 has been a year of tighter wallets. The rise in interest rates has affected the way we have been spending, all because of the increase in the cost of capital throughout all industries. The prices of groceries, gas, clothes, and virtually everything else have been high. To offset high costs, layoffs within the tech and financial services industries for example experienced mass layoffs, a consequence not only of the increasing cost of capital but also of the reality that set in after over-hiring during the COVID years.
We are now feeling the effects of the exorbitant amount of money being printed by the Federal Reserve, and it's being noticed. Will things get better? Yes, things will always get better with proper preparation. However, without the right preparation, tools, and knowledge, things may become bleak, a topic I can detail in another letter.
Top of mind is how can I survive in times like this? How can I protect my assets for my family and friends? Well, the bare minimum is to fight against inflation, which is at 3.2%. However, to be extra safe, we have to at least fight against the price inflation of the increased grocery bills. Some data shows 8–10%, so this is what we should be really fighting. Have you increased your assets by at least 10%, or at the very minimum, 3.2%?
Instead of having your money in a normal checking account, transfer your money into a High-Yield Savings Account. Brokers like SOFI and Robinhood (Premium version - $5/mo) offer high-yield savings accounts with 4.6% and 5% APY, respectively, to help your money grow in this tight economy. This is the safest way to beat inflation with high liquidity. With more risk involved, I can help you earn more.
Protect your loved ones and stay safe. Godspeed,
J