Armagadeon: Economic Death due to inflation.

 Inflation is a menace for those who are preparing for their future and the more we study about the past the more, we can see the future.

Let's see price of food in 1970s and compare to recent price. In 1970s a bowl of mee would cost you 10 cents and in 2022 it is nearly 10 ringgit. A 100x inflation within a span of 50 years. 

So, in the next 50 years, around 2070, a bowl of mee would cost you 1000 ringgit. 

Therefore, if your current monthly expenses is 2000 per year and you can retire comfortably with 1m of asset. 

Rewind back to the 1970s, a person would only need 20 ringgit to survive on for minimum in a month and you can retire comfortably with 10k of asset.

Fast forward to 2070, a person would need 200000 per month and can only retire comfortably with 100m of asset.

How many of us have 1m for retirement currently and even if you have 1m currently can you grow it to 100m by 2070.

It will take our asset to double every 7 years, if we want to multiply it by 100x in the span of 50 years. 

This is an utopian dream as we need to cover our monthly expenses that is inflated by doubling rate every 10 years and if we want to be able to have a better future, we need to live below our means. 

Not many people, who have 1m asset at current juncture, so the dream of a secure future will only be a dream of the future. 

Therefore, we should just live for the current and let the future take care of itself. 

As we get older, our medical cost will rise tremendously while the expenses for other items will be reduce accordingly. In Malaysia, only the rich can afford private medical care. The average will depend on universal healthcare coverage in our country.

Many business, will go bust sooner or later as with limited resources customer will demand products with higher quality or functions at a lower cost due to competition and market changer. Many companies that failed to change with time had gone under such as kodak, polaroid, nokia and blackberry.

Therefore in business the only constant is change. 

As a result inflation and competition will kill the economy or civilization sooner or later. 

Therefore, what we can do is make sure that our debt is less than our income so that we are solvent and our income is less than our productivity so that we are competitive. 

Moral of the story: Inflation will destroy the economy and our retirement unless we are able to multiply our asset every 7 years.

Therefore, we can only depend on God for our future. and enjoy our lives while we still can.

Be Bless, 

Dr. Lion.