(Consult your financial advisor before taking any actions)
Shielding Your Finances: Safeguarding Against Inflation with Wise Accounts
Inflation, an enduring challenge that has plagued societies since ancient Rome, continues to dominate discussions in 2022 and 2023. Its pervasive impact has left people across nations grappling with its detrimental effects, albeit to varying degrees.
However, amidst this widespread concern, there is a straightforward tool to use to safeguard your hard-earned money against inflation: Wise accounts. Wise accounts shield against inflation, providing average individuals with a reliable means to protect and preserve their financial assets.
What is Wise?
Wise is a financial technology company that offers international money transfer services with competitive exchange rates and low fees. This is not the first time Wise has been featured on Yonderprenur. It is an incredible tool for digital nomads and international entrepreneurs. There is a post The Ultimate Guide to Digital Banks: Wise, Revolut, and More if you want to understand how Wise is an incredible tool for travellers.
How Wise Accounts Shield Against Inflation
Holding multiple currencies has been a historically successful hedge against inflation. This strategy is good for all people whether US citizens or from another country in the world holding more than one currency and being diversified is a proven method to protect your wealth.
Wise is a super easy tool to get to help you achieve this result. Wise gives you access to hold 50 different currencies including powerful currencies such as the Chinese Yuan, Euro, Swiss Franc, and Japanese Yen.
Having Wise accounts shields against inflation by easily converting and holding these different currencies all in one place. Eliminating the need to open up foreign bank accounts in these locations. Although it should be noted this is a good strategy for people with a worth less than six figures. It is not recommended to use Wise as your main source of savings but rather as a tool to achieve quick and easy currency diversification.
Real Life Example
Inflation has been hard on all countries in 2023 but certain countries are struggling more than others. Argentina was already suffering from high inflation even before the pandemic. The last thing it needed was a global event that would force it to print even more money. This article goes into deeper depth and focuses on the Argentine crisis “Buenos Aires the 2nd most popular Nomad Destination (2023).”
Having a wise account can help Argentines diversify out of their hyperinflating currency by allowing them to swiftly and quickly swap their pesos for a different currency. Most people from Argentina actually already keep most of their savings in US dollars so having a Wise account that can give them exposure to other currencies can be hugely beneficial, especially against any unforeseen US dollar weakness.
De-Dollarization
Recently there have been global events that “could” be suggesting that the days of US dollar supremacy are coming to an end. This is definitely subjective many claims that anyone claiming this is serving their own agenda. It’s worth noting the actions being taken by the BRICS nations. Brazil, Russia, India, China, and South Africa have trade deals done in currencies other than the US dollar. More about protecting yourself in a de-dollarizing world in the article. “Building a Global Business in a Non-dollar World”
Whether you believe that the US dollar supremacy is ending or not. It’s always a good idea to add a little bit of diversification. Wise gives you the ability to hold the Indian rupee, Chinese Yuan, and the South African Rand. That is 3 of 5 of the nations in the BRICS alliance. Having a simple Wise account can give you the power to have diversification to both major world alliances.
To finalize
Protecting your finances against inflation was not the main purpose of Wise. It was developed to be the traveller’s favourite bank card. But in the process of making it serve this purpose, they have also created a very easy form of inflation hedging by having the ability to have a basket of different currencies nicely and conveniently in one place. If you are interested in opening a Wise account or just want to know more click the learn more button here.
Pingback: Crypto for Digital Nomads: The Key to a Borderless Lifestyle -