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Profit From Inflation With Real Estate Investing

Grandparents are always a source of wisdom, full of the knowledge that comes with having years of experience on this earth. As a child growing up you may have heard many stories from your grandparents stating that when they were your age a loaf of bread, a bottle of milk, [ fill in the blank] used to only cost 5 cents.

Now prices are multiples higher. When you consider your grandparents’ stories, the $3 price tag that you now pay for your bread, milk etc. seems ridiculous. And we are not even talking about the fancy brands here.

You may have even experienced this increase in price during your own lifetime already. Perhaps it was the costs of one of your favorite snacks as a child, or the amount of chips you get in the bag of chips from the deli. Even though it may not be clear how this price increase happened, it is clear to you that you are getting less for each dollar you have.

Why is this happening? There may be many drivers but one of the main sources is the phenomena called inflation.


What is inflation?

So, what is inflation really? To get technical the dictionary definition of inflation is an economic term that signifies a persistent and substantial rise in the general level of prices related to an increase in the volume of money and resulting in the loss of the value of currency (opposed to deflation).