Current inflation is forcing you to invest

Currently, we are at a time in our economic history when we all have a common enemy, called inflation. This enemy is to blame for the fact that we lose more and more purchasing power and can fill the shopping cart less.

La inflation is defined as the constant increase in the price of goods and services, thus affecting all areas of the economy. A clear example to understand this concept is that what you can buy today with 50€, in 5 years (at the level we are at) will be almost an impossible mission.

With the passage of time the inflation It significantly affects the purchasing power of citizens, and it also reduces the return on your investments.

How is inflation in Spain?

The truth is that during this year 2022 inflation is playing a major role due to its large increase, in fact, last July 2022 the inflation It is located in a increase of 10.8% year-on-year. And it is not an increase that goes unnoticed in Spanish homes, since all citizens notice it in their pockets, in their purchases, in their refrigerators and in their homes.

And how is inflation in Argentina?

The truth is that our Argentine friends have a considerably worse situation, because in July 2022 the level of Inflation stood at 71.0% year-on-year. This fact undoubtedly scares anyone who has never seen these figures in terms of inflation, but it is a reality that many citizens suffer month after month.

If it's still not clear to you how this “invisible tax” affects your pocket, you just have to look at the following graph:

How to combat inflation?

La inflation without a doubt, he is a fierce and powerful opponent, even so, with some forecasting and planning is it possible to protect your capital. How do I protect my capital? You might be wondering, because even if it's very easy to say, the solution is to invest. That thing about keeping money under the mattress, or in the bank, it doesn't work anymore, since it is one of the biggest mistakes that can be made in terms of inflation.

The solution to inflation is investment, invest depending on the inflation, choosing options that offer a return equal to or greater than the current inflation rate.

Being realistic Inflation affects everyone equally, but it's the quality when it comes to invest what differentiates them from each other.

The truth is that there are several asset classes that are used to combat the loss of purchasing power in the face of inflationary pressure. Let's look at the most important ones:

• Assets that tend to appreciate: This type of investment is characterized by investing in options that offer growth or appreciation, not just recurring income.
• Real assets: Inflation affects nominal assets, such as bank deposits and traditional bonds, because their price is based on fixed interest paid. On the other hand, real assets are tangible with a fundamental value. Therefore, its value accompanies that of inflation.
• Variable interest rate assets: It's clear that with an option that pays a fixed rate, you're most likely to lose money in an environment dominated by inflation. Assets that have variable interests can create more possibilities against inflation, since these will increase at the same level.

What is the best investment against inflation?

Well, as always you have to sweep home, we are betting, and very strongly, on real estate assets to combat inflation.

Los real estate assets they fulfill two fundamental aspects of those mentioned in the previous point, since they are a real asset and have a tendency to appreciate over time. As in the case of raw materials, the value of land and property tends to increase along with inflation.

In most cases, assuming the cost of an entire property is unattainable for the average pocket, but that's exactly what it was created for Reental, that's why we're here. As some of you may know, our main mission is to achieve democratize real estate investment, which obviously includes allowing everyone to benefit from all the advantages offered by this market.

That's why we invite you to use investment in tokenized real estate assets to combat the ravages of inflation on your economy.

Take charge of your finances with Reental and stop worrying about inflation.

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Welcome to the new way of doing finance, welcome to Reental.