Look, I need to tell you something that changed everything when it comes to investing and I have completely changed what assets I invest in now for financial independence…..
Our money isn't actually worth anything.
Yeah, you read that right. That cash sitting in your bank account? It's basically just numbers on a screen, backed by… well, nothing but trust in the government.
WTF, right?
I didn't always think about money this way.
For years, I was just like everyone else – working my engineering job, getting my salary, and thinking I was doing alright. But something changed when I moved to the Middle East as an expat engineer.
See, when you're dealing with different currencies and watching exchange rates like a hawk (because your savings are in one currency but you might need to move back home someday), you start noticing things.
You start asking questions.
And let me tell you, once you go down this rabbit hole, there's no going back.
Ever since learning about fiat money, I've been exploring alternative ways to achieve financial independence – including using Bitcoin as a tool for financial independence.
The Moment Everything Changed
I remember sitting in my apartment one evening, looking at my savings account (which was finally growing thanks to that tax-free expat salary), when I read about how the US had printed something like 40% of all dollars IN EXISTENCE in just one year during COVID.
That's when it clicked.
If they can just print more whenever they want… what does that mean for those numbers in my bank account?
What You're Going to Learn
In this post, I'm going to break down:
- What fiat money actually is (in plain English, I promise)
- Why understanding this stuff actually matters for your future
- What I'm personally doing about it (including my mistakes!)
- Some practical steps you can take to protect yourself
Quick Disclaimer
I'm not a financial advisor. I'm just an engineer who's spent way too much time thinking about this stuff.
What I am going to share is:
- My personal journey of understanding money
- The problems I see with the current system
- What I'm doing to protect my family's future
Ready to dive into the rabbit hole with me?
Let's get started… ye know it's going to be interesting when we're questioning something as fundamental as money itself.
What the Hell is Fiat Money?
Right, let's break this down in a way that actually makes sense…
The Basics (Without the BS)
Fiat money is basically currency that's:
- Not backed by anything physical (like gold or silver)
- Only valuable because the government says so
- Created out of thin air by central banks
Think about that for a second. The money in your wallet isn't actually backed by anything real. It's just paper (or digital numbers) that we all agree is worth something because… well, because we have to.
A Quick History Lesson (I'll Keep It Relevant)
You know what's mental? Up until 1971, most currencies were actually backed by gold. That meant you could take your paper money to the bank and exchange it for actual gold.
But then something changed.
The US decided to remove the gold backing from the dollar, and since the dollar was the world's reserve currency, every other country followed suit. Just like that, the entire world switched to a system where money isn't backed by anything physical.
As an engineer, this bothers me on a fundamental level. How can we build a global financial system on something with no actual foundation?
Why This Matters to You (And Me)
Here's something I've noticed living as an expat:
When you're dealing with multiple currencies, you start to see how fragile this whole system is. I remember looking at exchange rates one day and thinking:
"Hold up… if no currency is backed by anything real, aren't we all just trading different types of nothing?"
And that's when I started to understand why my savings weren't really growing, even though the numbers in my account were getting bigger.
The Problem with Fiat (In Engineer Terms)
Let me put this in terms that make sense to my engineering brain:
Imagine you're building a bridge, and someone tells you the foundation is made of material that:
- Can be created infinitely
- Gets weaker over time
- Has properties that change based on people's feelings
You'd think they were mad, right?
Yet this is exactly how our money works.
Unfortunately fiat money is not sound money.
The Numbers Don't Lie
Since I moved to the Middle East, I've been tracking what happens to my savings in different currencies. Here's what I've noticed:
- The numbers in my account might go up
- But the actual purchasing power keeps dropping
- And the rate of decline seems to be accelerating
It's like having a bucket with a hole in it – you can keep adding more water, but it's still leaking out the bottom.
I mean check out the US M2 money supply – roughly half of all money has been printed in the last 10 years – 10 years! this graph starts 74 years ago FFS.
Of that, more than a quarter was printed since 2020!
Source: https://fred.stlouisfed.org/series/M2SL
It only looks to be coiling up again too – money printer go brr alright
The Real Kicker
You know what really gets me? The fact that most people don't even question this system. We're all so used to it that we don't stop to ask:
"Why are we using money that's designed to lose value?"
As engineers, we're taught to question systems, look for failure points, and design solutions. When you apply that same thinking to our monetary system… well, that's when things get interesting.
But before I share what I'm doing about it, we need to understand exactly why this system is broken (and no, it's not just because of inflation).
Let's dive into that next…
The Problems With Our Current Money System
The Hidden Theft
Look, I need to be straight with you about something that's properly winding me up lately…
Every time the government prints more money, they're essentially taking value from your savings without ever touching your account.
They are adding a whopping 8% to the yearly hurdle rate your investments need to beat jsut to maintain your purchasing power.
It's like someone's sneaking into your wallet while you sleep, replacing your £20 notes with £19, then £18, then £17… you get the picture.
And it's getting worse.
The Three Big Problems I've Noticed
Living and working across different countries, I've seen these issues pop up everywhere:
- The Inflation Tax
- Your money loses value every year
- Savings accounts are a joke
- Working harder doesn't help when the goal posts keep moving
- The Debt Trap
- Interest rates are manipulated
- Getting a mortgage feels like signing your life away
- The system encourages debt over savings
- The Control Issue
- Governments can freeze your accounts
- Your money isn't really yours
- They can change the rules anytime
Why Should You Care?
As an engineer, I'm trained to spot system failures. And let me tell you, this system is showing all the classic signs:
- Single Points of Failure
- Centralized control
- Dependency on trust
- No built-in safeguards
- Negative Feedback Loops
- More printing leads to more inflation
- More inflation leads to more printing
- The cycle never ends
- Design Flaws
- No upper limit on supply
- No objective measure of value
- No way to opt out (until recently)
Real World Impact
Living as an expat, I've had a front-row seat to this circus. Here's what I've personally experienced:
- Watched my home currency drop 20% in two years
- Seen friends lose their savings to currency devaluation
- Had to juggle multiple currencies just to preserve wealth
And ye know what's crazy? This is considered normal.
The Good News
Here's the thing – once you understand the problem, you can start working on solutions. And unlike previous generations, we actually have options now.
But before I get into what I'm doing about it (and trust me, I've made some proper mistakes you'll want to avoid), let's talk about why this matters for your future…
Next up: I'll share exactly what I'm doing to protect myself from this madness, including the strategies that are actually working for me as an expat engineer.
Protecting Yourself From This Mess
Right, this is where things get interesting…
My Journey (And Yeah, I've Made Some Mistakes)
Full disclosure here – I've properly screwed up a few times trying to figure this out. But that's how we learn, right?
My Biggest Mistake? Not starting sooner. I spent years just letting my money sit in savings accounts, thinking I was being "responsible." What a joke that turned out to be.
What I'm Actually Doing Now
Look, I'm not going to pretend I've got it all figured out, but here's what's working for me:
- Getting Out of Cash
- Keep enough for emergencies (about 6 months)
- But not a penny more than necessary
- Because cash is literally designed to lose value
- Bitcoin Strategy
- Started small (learned this the hard way!)
- Regular buying instead of trying to time the market
- Cold storage for long-term holding
- Not financial advice, but worth researching (for more info check out my review of The Bitcoin Standard Book)
- Hard Assets
- Looking into precious metals
- Considering property (still figuring this out)
- Basically, anything that can't be printed
The Engineer's Approach to Wealth Preservation
Here's how I think about it now:
If (money_printing = infinite) { purchasing_power = declining; solution = find_limited_assets(); }
Trying to be clever lol but I think you get it – need to find hard assets that aren’t brought down by fiat money.
This becomes even more relevant when you go down the economic singularity rabbit hole.
Practical Steps You Can Take
Right, enough theory. Here's what you can actually do:
- First Step (Easy Mode)
- Educate yourself (you're already doing this!)
- Start tracking inflation's impact on your savings
- Question everything about money
- Level Up (Medium Mode)
- Research Bitcoin (properly, not just headlines)
- Look into precious metals
- Consider moving some savings into limited assets
- Advanced Mode (When You're Ready)
- Develop a proper strategy
- Diversify across different types of assets
- Think globally (especially important for us expats)
A Word of Warning
Look, I need to be crystal clear about something:
This isn't about getting rich quick.
It's about not getting poor slowly.
I've seen too many people rush into this stuff thinking they'll make a fortune overnight. That's not what this is about.
This is about protecting what you've worked hard for.
What's Working For Me Now
After a lot of trial and error (emphasis on the error), here's my current approach:
- Monthly Plan
- Convert portion of salary to Bitcoin
- Keep exploring new options
- Always have backup plans
- Learning Process
- Read constantly
- Test ideas with small amounts
- Adjust based on results
Final Thoughts
Here's the thing – I'm not telling you what to do with your money. That's your call.
What I am saying is this: understand what's happening to your money in this fiat system, and make conscious decisions about protecting it.
Because if you don't, inflation will make the decision for you.
For more in-depth understanding of just how broken the fiat system is, check out my review of the Fiat Standard book
