I’m really glad we’re discussing this because I just read this morning
Among the world’s major economies, the
International Monetary Fund predicts that
only Russia, battered by global sanctions, will
perform worse than the UK next year. The
Bank of England forecasts UK inflation will
peak north of 13%, the highest since the early
1980s, and Goldman Sachs said it could top
22%, closer to the 1975 postwar record. Both
see the economy tipping into recession in the
coming months. On Monday, the British
pound fell to the lowest level against the
American dollar, $1.1443, since 1985
A simple and safe example of an investment one could make, and one that’s often forgotten is in food.
What I mean is, any expenses you have that are
E.g., long lasting foods like rice, pasta, tuna, canned foods etc.
So say you buy a 6 cans of chopped tomatoes on average a month (for those curries!), you could just invest in bulk purchasing a years supply now given that prices are almost guaranteed to increase with inflation and cost of living crisis.
Oh that’s true. I didn’t actually consider the macroeconomic impact of encouraging people to bulk buy right now. Whilst it might save money at the micro level, it actually causes more harm at a large scale.
It’s basically the lockdown toilet roll fiasco all over again
Maintaining healthy spending habits will help with the recession, which in turn will hopefully reduce inflation. Then we invest our free cash to keep it safe. I’ve heard from Wahed employees that they are developing a bank account, where your money is stored in physical gold. That way you can invest your savings, but also protect your free cash.
So what you guys are saying so far is that it just doesn’t make sense to keep your money in the bank? Due to inflation, my money is definitely going to decrease in value. Very interesting, I can’t believe I only found out about this now.
I am super looking forward to the wahed bank! I will be the first one to sign up. @ReeceByfield is there a way to have an early or pre-order for sign ups for the bank?
Will the bank also be investing our money too or do we have to put that into a wahed portfolio?
How will wahed do with international spendings, e.g if I went to spain, I could use my monzo or revolut and have the best rates and use it internationally, will wahed do the same?
Please let me know!