Alot of people and alot of businesses especially landlord is profiting from inflation right now and here how they actually doing it. I've seen people do services for me raise their price by nearly double, once inflation goes down, they keep the prices the same. I know people that have gotten lease renewals at around 10-20% more than they used to pay because we don't know what might happen. Also, if you notice car companies like Tesla always raise prices because they don't know the prices of raw materials in the next few months.
However, the FED is literally raising rates aggressively and saying they will pit things under control. Not to say that fed has ultimate control or anything or we should trust them. But I'm saying people are profiting from this.
So how are people profiting to this ? Inflation is basically your money loses value. You have the same amount of money but now you have to buy less things with it because it can't buy as much as it could before. Well sometimes this inflation might be a great thing when it comes to DEBT. If you borrow a $100 000 for example 100 years ago , that's alot of money back then , you could buy a house, you could pay for education , you could buy a car with another car basically you could be rich. Imagine you could have borrowed a 100 year ago, now you have to buy in power of what you have today. This means the lender is out of luck because the money he lent you , you bought everything you needed first but the money is worth less so effectively by paying off that money you're getting a massive discount.
You have a student loan debt 30k, your invasion is up like 10% , I don't see a 3k discount but effectively that money there doesn't have the same level of personal power so by you paying it right now you basically save tons of money. So the idea is , if you have a debt right now and if you have an extra income don't use that extra income to buy dumb stuff use that to pay your debt off as fast as possible and effectively save money by using inflation in your favour.
Another thing Assets. some people buy assets that they can't afford for whatever reason. So if you bought a car that you basically cannot afford , well right now it's the perfect time to SELL it. Why is that a great idea , well , for the very first time in history if you bought a car with x amount of money after a few year went by the car actually went up in value. For the very first time ever, they can sell their car and pay off the loan and still have a little money left for another car. This is very rare , you'll only see this with people who buy super luxury vehicles not regular Toyotas , Hondas or Mazdas. So for the first time this is happening there's a new rule , if you have more than half of your income , take advantage and sell these cars and for the first time usually you won't be upside down by that much or anything when it comes to your car loans. It's a perfect time to go ahead and sell . This includes houses if you bought a house you couldn't afford, you can sell your for alot more money.
Pocket some equity the answer might be a good idea. But this window is small. Why is it small ? Although companies are saying we have to raise prices we just don't know what's going to happen. The FED the people that control all the printing of the money and the monetary policy basically say we're going to do everything in our power to decrease inflation . They going to raise rates as possible as they can to lower the inflation. So basically we have a small window if time because everything they're doing right now in the next 6 -12 are going to reflect in our actual economy.