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#1 Escape While You Can

Think about it, if money itself loses all value, what possible investment, stock or bond can help you? Can your rental real estate plow the land and put food on the table for you? No, all it can do is generate more worthless cash. Actually, it might not even do that. So escape while you can.

#2 Relationships and Communities

In the midst of Zimbabwe's hyperinflation crisis, the real currency became trust and community ties.

#3 Hold Foreign Currencies Offshore

When money loses its value, you need a backup plan. Governments can restrict you to only use their own currency during hyperinflation, especially when they're printing a lot of it. It's usually better to store the currency in a different country that you can travel to.

#4 Cash

During hyperinflation, think about taking your money out of the bank as fast as possible. Once you have your cash, you need to convert cash into stuff that keeps its value and you can trade later, like foreign money, gold and silver coins, fuel, or canned food that lasts a long time.

#5 Unit of Account 

Just like these measurements, money is a tool for measuring value in economics, called a 'unit of account.' For the economy to function properly, this unit needs to be stable. But during hyperinflation, money loses this stability. In such situations, businesses and people need to find something else that's stable to measure value, like how people in Zimbabwe used the US dollar and food as units of account instead of their constantly changing currency. 

#6 Debt

During hyperinflation, the last thing anyone wants to do is lend someone money.
If you owe someone money during this time, it becomes super easy to pay them back. But for the person who lent the money, it's bad news. They get paid back with money that's worth a lot less than when they lent it. Even if they charge interest, it usually doesn't keep up with the crazy inflation rates.

#7 Manage Assets, Not Income 

In this tough situation, businesses need to change how they operate. Instead of focusing on selling products and services to customers, they need to focus on survival.

#8 Pensions 

During hyperinflation, your pension savings will be completely worthless. A financial expert from Zimbabwe once said that if he could go back in time, he would tell people to take their pension money out and put it into something valuable. If you leave it in normal savings like cash or bonds, it'll become worthless.Instead, you should turn your savings into assets that keep their value or things you'll need to live such as food and clothing. 

#9 Medium of Exchange

One of the fundamental uses of money is to serve as a medium of exchange. But what if you aren’t permitted to use your regular currency?  Some of you might already use some of the high tech platforms that let you trade using gold. But if the government controls the internet and payment processors that power these platforms, you’re not any better off than everyone else. Plus, staying safe online is another thing to worry about with these platforms.

#10 Save & Invest 

If you take all your money out of regular investments, you'll still need to figure out where else to put all that cash.  This is a tough question, and even the book doesn't give a clear answer because it is highly dependent on many different factors.  To be honest, I’m not entirely sure either. But one thing's for sure: not saving in real, intrinsically valuable assets is a bad idea if hyperinflation hits. Intrinsically valued assets are things that are valuable on their own, without requiring a government telling you it’s valuable.

#11 Learn To Listen

Governments use confusing language and rhetoric as powerful tools of control. You should learn to understand the statements made by authorities, what they say, and especially what they don't say.  In practice, most financial concepts are not too complicated for the average citizen to understand, despite what many governments and economists would like you to believe. A useful rule of thumb is this: if you don't understand what they're saying, it probably means they don't want you to understand.  And it’s time to take matters into your own hands and figure out a survival plan.

📜 Disclaimer 📜
The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. Some of the links are affiliate links, and I will receive a small commission for referring viewers to the service at no cost to you.

#money #finance #inflation

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