This is for the person who:
Wants to learn more about finance but doesn't have time to get another degree. On every Monday you'll get a 3 minute read in your inbox to teach you a new financial topic.
Not just what it is, but why it matters, and how it impacts you.
Do You Feel Like..
Life is getting more expensive? I almost divide time out as before Covid and after. Like before Covid I could get my weekly groceries for $100 an eat like a queen and now I can't even look at a Publix without spending $100 and leave with only 2 bags.
Quantitative Easing
Enter the $100 word. Your 5th grade english teach would be so proud. Ever wish that you could just print more money? One of my dad's favorite sayings was that money doesn't grow on trees. But for the US Government it kinda does because they can always just print more. Quantitative easing simply put is the government printing more money. They do this buy purchasing large quantities of government bonds or other financial assets from the open market which injects liquidity into the banking system.
They do this to reduce long-term interest rates and encourage banks to continue to lend money out and for investors to continue to buy which boosts the economy.
Since 2020 it's estimated that the government has printed between $3 - $4 trillion in money. Some analysts suggest that up to 80% of all US dollars in circulation were created in the last few years. And we wonder why the price of gold and assets (stocks/homes/etc) are going up..
When they print more money the money you have loses value. Which is why feeling like life is getting more expensive isn't just a feeling it's actually a fact.
Why This Matters
This impacts you because if you aren't investing or putting your money in assets that worth are growing, then you are losing money, every year. In 2020 if you needed to save $80k for the downpayment for your new house today you'd need to save $102k.
Your time is worth money. You trade everyday your time in exchange for a rate of pay. So start taking your money and use it to make more money and buy your time back. Don't let quantitative easing steal your money or your life.
You're an absolute queen. It's time to start getting paid to exist.
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