In an inflationary environment, debt is king.
Here is why. If you sat on cash during the last few years, you already know how quickly it loses buying power. Inflation quietly eats away at it. What looked like a solid nest egg a few years ago is now worth much less in real terms. That means you actually lost money by standing still.
Now compare that to someone who used debt the right way. Instead of holding cash, they locked in fixed debt tied to real, appreciating assets. Inflation worked against the saver but worked for the investor. The same force that shrinks the value of cash increases the value of physical assets like real estate.
It is a complete flip in perspective. Most people fear debt, but in this kind of environment, fixed debt can be a shield and even a wealth-building tool. While inflation drags down cash, it lifts up the value of property, equipment, and other hard assets. And because your debt payment is fixed, you are effectively paying it back with cheaper dollars each year.
This is why I say debt is king during inflation. Not reckless debt, not consumer debt, but smart, fixed debt tied to assets that hold or grow in value. That strategy lets you capitalize on inflation instead of being crushed by it.
Inflation is unavoidable. You cannot stop it, but you can choose how it impacts you. Either you watch it erode what you have, or you position yourself to ride the wave and come out stronger. The winners are not the ones hoarding cash, but the ones leveraging debt in the right way.
This is how you move from being a victim of inflation to making it work for you.