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LESSON 2 · How the Economy Actually Works

Protecting Your Wallet

Your best defense against inflation is ensuring your income grows faster than prices. Negotiating regular raises, investing in skills that command premium wages, and avoiding large cash holdings all help.

Assets like stocks, real estate, and inflation-protected bonds have historically outpaced inflation over long periods. The worst strategy is leaving your savings in a checking account earning near-zero interest while inflation quietly eats away at it.