Inflation is happening, and there are a lot of different perspectives on it. Most people view it negatively, but it doesn’t have to be that way. It’s not as scary as they make it out to be.
In this episode of the Finance for Physicians Podcast, Daniel Wrenne talks about inflation—what it is, the backstory behind it, how it works, what to consider, and how to navigate the changing environment.
- What is inflation? When prices increase over time
- With or Without Inflation: Supply and demand to survive and drive up prices
- Government Involvement/Responsibility: Makes money, pricing more complex
- How It Works: Stimulus payments save jobs and give people money to spend
- Short- vs. Long-term Inflation Spike: Data shows short-term blip will correct itself
- Rule of 72: Translate percentage return to time period to when it doubles the cost
- How susceptible are you to inflation? Go back to basics and refer to Inflation 101
- Physician’s Income: At minimum, compensation needs to keep up with inflation
- How susceptible are assets to inflation? Depends on efficiency (i.e. cash, stocks)
- Beware: Avoid fear, manipulation, people selling scams due to hyper-inflation
- Takeaways: Understand inflation basics – general awareness, keep pace with it