It’s Noha here from Rock Star's Marketing team.
I’m taking over this week’s email for two reasons:
1. Tom's off to
2. I’ve got a crazy inflation story I want to share with you.
But before I get into
Like this week's Rock Star minutes with Rock Star coach Nadeem walking us through a student rental generating $120,000 a year!
Check it out here. It’ll blow your mind!
Keith, Kyle, Anthony, Cidney, and Aidan…you guys rock!
Now on to my story…
I just got back from a brief stay in Egypt.
I was there for my cousin’s wedding.
First some quick background: last year, the Egyptian government devalued the local currency THREE times in a single year after the Russia-Ukraine conflict triggered an exodus of foreign investors (and foreign currency) out of the country.
Below is a chart comparing the value of the Egyptian Pound to Canadian Dollars.
Meaning the Central Bank of Egypt printed a ton of EGP and flooded the economy with new money created out of thin air.
This led to skyrocketing inflation everywhere.
I experienced some of it when I was there last year, but things got way worse than I expected…
See, my cousin’s wedding was initially set for September this year.
Then a couple months ago, she told us the wedding was moved up to July.
Not unusual. Weddings get moved all the time.
The crazy part was the REASON for moving it.
See, inflation in Egypt got so bad so quickly that my cousin and her fiancé were having serious doubts about their ability to afford having the wedding in September.
Prices were going up almost EVERY DAY.
And doubling or tripling every few months. Some merchants were outright warning customers about tripling prices in their store advertising.
My cousin and her fiancé were getting nervous. If they waited till September, their expenses will be double or triple what they are today.
So they decided to have it early and rush through putting this wedding together on short notice, all to avoid the uncertainty of inflation later in the year.
Isn’t that wild?
One thing my cousin said stuck with me.
It's common practice in Egypt for newlywed couples to furnish their home with all brand new appliances and furniture. Which often means they end up taking on a lot of debt.
So when I asked her why they don't save their money instead of taking on so much debt, she said she'd rather spend the money on furniture & appliances (because they're considered 'assets') than holding on to the cash.
It blew my mind.
Money was losing value so fast in Egypt that people would rather spend it than hold on to it!!
I'd heard of this happening in other countries like Lebanon, Argentina, or Zimbabwe. But I didn't expect to hear it happen to my own family in Egypt.
All of this, along with my short stay there and experiencing these insane prices firsthand got me thinking.
Canada also dealt with record inflation. Not at the same pace of course, but we've all seen & felt the impact of costs going up...whether it's gas, housing, or even a stick of butter.
And this all made me realize the importance of owning hard assets.
If I want to have a secure financial future, saving alone won't be enough (because money loses value fast in inflationary environments).
And there's no way to know if my current savings will cover my future expenses. Covering the essentials is hard enough today, never mind twenty or thirty years from now.
We're not necessarily in a hyper-inflationary environment in Canada....yet.
But I don't want to wait till we are.
I'd rather take action now to protect the value of my money by putting it into hard assets like real estate or gold or Bitcoin than wait till it loses even more value in the future.
Because it will lose value. It's inevitable.
As long as central banks have the ability to print money out of thin air, the money in my - and your - accounts will continue to be devalued.
No one knows what crisis could hit next, or how much money central banks will print to deal with it.
What I do know is I don't want to be caught off guard when they do. I don't want you to be either.
If there's anything you can do today to protect your money (buying assets or gathering more information on how the money system and economy work), please do it!
Anyway, that was my two cents for this week, hope you found it helpful!
p.s. can you read what it says on my t-shirt in the above pic? I almost chickened out on taking this picture! Egyptian authorities are weird about people taking photos in public, and there was a traffic officer standing just a few feet away from me LOL! Luckily he didn't notice...