Look, I'll be honest – for the first 8 years of my engineering career, I had no clue about money printing.

I was doing what I thought was right – working hard, saving money, and trying to get ahead.

But something wasn't adding up. Despite having a "good job" and being careful with money, I couldn't even afford a house deposit.

It wasn't until I moved to the Middle East and started learning about investing that I realized what was really going on. And let me tell you – it was a proper WTF moment.

Want to learn how I'm protecting my wealth from money printing? Check out my guide on Achieving Financial Independence with Bitcoin.

What the Heck is Money Printing? (Let's Keep This Simple)

First things first – when I talk about money printing, I'm not talking about actual paper money coming out of a printer (though that does happen).

What I'm talking about is way bigger and more important to your financial future.

Think of it this way…

Remember playing Monopoly as a kid?

Imagine if one player could just create more money whenever they wanted. That's basically what's happening in our financial system, but digitally and on a massive scale.

Learn more about how our modern money actually works in my post What is Fiat Money

The Three Ways Money Gets "Printed"

  1. Central Bank Magic – When they buy government bonds and other assets, creating new money out of thin air
  2. Commercial Bank Multiplication – When banks create new loans (yep, they literally create that money)
  3. Government Spending – When they spend more than they collect in taxes

Dive deeper into this topic in my post Why Governments Keep Printing Money]

Why Should You Care? (I Sure Wish Someone Had Told Me This Earlier)

Here's the thing – this isn't just some boring economic concept. This directly affects your:

  • Savings
  • Salary
  • Future plans
  • Ability to buy a house
  • Retirement
  • Kids' future

Let me share something personal. Back when I was working in Canada, I kept wondering why house prices kept rising while my engineering salary stayed pretty much the same.

I thought I just needed to save more or work harder. Turns out, I was playing a game where the rules were changing without anyone telling me.

The Money Illusion: Why Everything Looks Fine (But Really Isn't)

This is where it gets properly interesting (and a bit mind-bending). When we say asset prices are "going up," something else is actually happening…

Learn about the real inflation rate in my post Understanding Inflation: What It Really Is and Why It's Higher Than You Think

If You Own Assets

You might think you're getting richer because your house or stocks are "worth more." But here's the reality check I had to face – what if the measuring stick (money) is getting smaller?

If You Don't Own Assets (Like I Didn't for Years)

This is the real kick in the teeth. While asset prices keep "rising":

  • Your salary effectively shrinks
  • Saving for a deposit gets harder
  • The gap between you and asset owners grows
  • That house you want keeps getting more expensive

See how I finally broke this cycle in How Being An Expat Has Accelerated My Financial Independence Journey

How This Affects Your Daily Life (Even If You Haven't Noticed)

Let me share some real numbers from my time living in different countries. In Dubai, I've watched:

  • Grocery bills creep up
  • Rent increases that seem endless
  • Property prices that keep climbing

Real-World Examples That Made Me Wake Up

Let me share some proper "oh shit" moments that made me realize what was happening with our money…

The 2008 Financial Crisis – More Than Just News Headlines

I remember graduating a couple of years after 2008. Ye know what's crazy?

At the time, I didn't spend a single second thinking about the economy or what was happening.

I was just focused on getting my engineering degree and landing a job.

Little did I know:

  • My starting salary would be much lower than previous graduates
  • The days of golden handshakes were gone
  • This moment would create ripple effects we're STILL dealing with today

Looking back now, it's wild to think how that crisis led to the first major money printing experiment of our generation.

The "temporary" solutions they came up with? Yeah, they never really went away. Instead, they became the new normal.

Understand how this affects you in my post Why Governments Keep Printing Money

The Global Perspective: What I've Learned as an Expat

Here's something interesting about being an expat – you get to see how this stuff plays out in different countries. I've lived in the UK, Canada, and now the Middle East, and I keep in touch with friends and family back home. Let me tell you, it's been eye-opening.

What I'm Seeing:

  • Every country is dealing with similar issues (rising costs, housing crises, wage stagnation)
  • BUT some countries are handling it better than others
  • And some… well, they're definitely not doing great

For example:

  • In the UK: Friends are struggling with energy bills and housing costs
  • In Canada: The housing market went absolutely mental
  • In Dubai: Things are getting more expensive but relative to the cost of living it is still manageable, unlike int he UK and Canada.

LINK: Check out my full expat finance journey in How Living Abroad Accelerated My Financial Independence Journey

The Results We're Seeing Now

Being an expat, I've got a unique perspective on this. I can see how this affects different currencies and economies. Here's what I'm noticing:

  1. Housing Markets Going Mental
    • Properties that were "affordable" 5 years ago are now out of reach for many
    • Rent prices climbing faster than salaries
    • The "just save more" advice becoming a joke
  2. Stock Market Weirdness
    • Companies with dodgy financials hitting record highs
    • Traditional valuation metrics getting thrown out the window
    • Everything seems to go up (until it doesn't)

See how I'm approaching investments in Building Financial Independence Through Alternative Investments

  1. The Great Wage Squeeze
    • Salaries not keeping up with real inflation
    • Benefits getting cut while costs rise
    • The middle class getting squeezed from both end

Why Traditional Financial Advice Is Failing Us

Here's something that really gets me going – the traditional financial advice we've all heard:

  • "Save 10% of your income"
  • "Buy a house as soon as you can"
  • "Invest in a balanced portfolio"

This advice isn't necessarily wrong, but it's missing crucial context. In a world of endless money printing, these strategies might not be enough anymore.

Learn about alternative strategies in my post The Bitcoin Standard Book Review

The Real Problem with Savings Accounts

Let me break this down with some real numbers from my own experience. When I was saving for a house deposit in the UK:

  • My Savings Rate: +3% interest
  • Real Inflation Rate: +15% (or more)
  • Real Return: -12% per year

That's right – I was losing money by being "responsible" and saving.

Why Assets Aren't Really "Going Up"

This is where it gets interesting (and a bit mind-bending). When you hear "house prices are up 20%!" or "stocks hit all-time highs!" – here's what's really happening:

Dive deeper into this concept in What is Sound Money

Think of it this way – imagine measuring your height with a rubber band:

  • The rubber band keeps stretching (money losing value)
  • You appear to be getting taller (assets "going up")
  • But your actual height hasn't changed (real value staying the same)

The Two Types of People This Creates:

  1. Asset Owners:
    • Feel wealthier on paper
    • Actually just keeping pace with inflation (maybe)
    • Often taking on more debt thinking they're "making money"
  2. Non-Asset Owners:
    • Getting priced out more each year
    • Savings becoming worth less
    • Watching the gap grow wider

A Quick Note About Inflation (It's Worse Than They Say)

Look, most people have heard about inflation – that magical 3% number governments love to quote.

But here's something that'll make you think twice: in the UK, food prices alone rose 25% in just two years (2022-2024).

That's nearly three times more than they rose in the entire previous decade.

And that's just food. When you add in everything else… well, let's just say that official inflation numbers might not be telling the whole story.

I dive deep into the real inflation rate and what it means for your money in my post Understanding Inflation: What It Really Is and Why It's Higher Than You Think

But here's the kicker – inflation is only part of the problem. When you combine it with money printing and currency devaluation… that's when things get really interesting.

Let me explain…

The Double Whammy: Money Printing + Inflation

Right, so you've got inflation eating away at your money (and it's worse than they say – check out my other post for the full story on that).

But there's another force at work here that almost nobody talks about:

currency devaluation from money printing

What Happens When They Print Money

Think of it like this – every time they create new money:

  1. More currency chasing the same amount of stuff
  2. Your slice of the pie gets smaller
  3. Everything costs more (but not because it's more valuable)

Imagine there were only $1 trillion in existence and you earnt $10,000 – you own 10,000 /

Key Takeaways (Here's What You Need to Remember)

Right, let me break this down into what actually matters for your money:

Traditional Money (Fiat)

Look, here's the reality with the money in your bank:

  • Every time they print more, your slice of the pie gets smaller
  • Your savings? They're literally getting diluted
  • That "safe" money in your account? Not so safe when you realize what's happening to its purchasing power

Let me give you a proper real-world example:

Say you've got $10,000 saved up. Great! But when they double the money supply (which they've done multiple times recently), your $10,000 is now a much smaller piece of the total pie. Your share just got cut in half, even though the number in your account stayed the same.

Sound Money (Like Bitcoin)

Now this is where it gets interesting. With something like Bitcoin:

  • There's a fixed supply (21 million ever)
  • Nobody can print more
  • Your share stays your share, period

Dive deeper into this in What is Sound Money]

Think about it this way – if you own 1 Bitcoin, you'll always own 1/21 millionth of the total supply. Nobody can dilute that share. Ever. That's proper ownership.

Why This Actually Matters

Listen, I'm not here to tell you what to do with your money. But what I will say is this:

  1. Understanding the Game:
    • The rules of money have changed.
    • The economy is now driven by the everything code.
    • Most people haven't realized it yet
    • The old ways of saving might be hurting you
  2. Taking Action:
    • Look at your savings with fresh eyes
    • Consider what happens when they print more money
    • Think about assets that can't be diluted
    • You might only have until 2030 to make as much money as you can

See how I'm applying this in From FIRE to SovFIRE: Sovereign FIRE

The bottom line? Your money's purchasing power isn't just affected by inflation – it's being diluted by money printing too.

Understanding this changed everything about how I think about saving and investing. Maybe it's time you looked at it differently too.

Here's What This Means For You

Let me share something personal. When I was working in Canada and the UK, I kept thinking, "If I just save more, I'll get ahead." But check this out:

My Old Strategy (Which Was Dead Wrong):

  • Save 20% of my salary ✅
  • Get decent returns on investments ✅
  • Watch my wealth grow ❌

What Was Actually Happening:

  • Inflation eating my savings
  • Money printing devaluing what's left
  • Asset prices running away from me

his is why I had to completely change my approach to building wealt

The Asset Price Illusion

Here's where it gets proper interesting. When you hear:

  • "House prices are up 50%!"
  • "Stock market hits new highs!"
  • "Your investment portfolio is up 20%!"

Ask yourself: Is it actually worth more, or is the measuring stick (money) worth less?

Learn more about protecting against this in Building Financial Independence Through Alternative Investments

Living It First-Hand

Being an expat has given me a front-row seat to this show. I've watched how:

  • Property in the UK keeps "going up" but gets less affordable
  • Salaries in engineering haven't kept pace
  • Friends back home are working harder but falling behind

And here's the thing – this isn't just happening in one country. I've seen it across the UK, Canada, and now in the Middle East. The only difference is how fast it's happening in each place.

See how this affected my journey in How Being An Expat Has Accelerated My Financial Independence Journey

Would you like me to continue with the section on what we can actually do about this?

Your Investment Returns Aren't What You Think (The Hurdle Rate Reality)

Here's something that properly messed with my head when I first figured it out.

Most people think about inflation when they're planning their investments – you know, that official 2-3% number governments love to quote. But they're missing something massive.

Let's break this down with some real numbers:

  • Your Investment Return: 10%
  • Minus Real Inflation: -3%
  • Minus Currency Devaluation: -8% ———————— Real Return: -1% 😱

This is what I call your hurdle rate – the rate you need to beat just to stay still. Think of it like running up a down escalator. That 10% return? It's not actually moving you forward if the escalator (inflation + money printing) is moving down faster.

I'll be diving deep into this in a future post because it's absolutely crucial for your financial planning. But for now, just know this – if you're not factoring in both inflation AND currency devaluation into your investment returns, you're probably falling behind while thinking you're getting ahead.

So What Can We Actually Do About This?

Look, I spent way too long being angry about this situation before I started taking action.

To be honest, still now when I actually think about what money printing is – its theft of the time and energy i spent working for a certain wage, only for that money to be vevalued later on.

Here's what I'm doing now (and what you might want to consider).

1. Stop Playing Their Game

First up, I had to accept that the old rules don't work anymore:

  • Saving in a bank account? You're guaranteed to lose purchasing power
  • "Safe" government bonds? More like guaranteed wealth destruction
  • Traditional 60/40 portfolio? Might need a rethink

2. Start Looking at Hard Assets

LINK: Read more about my journey into sound money in What is Sound Money

Here's what I'm focusing on now:

  • Assets that can't be printed
  • Things with actual utility
  • Investments that have historically preserved wealth through currency crises

The key question I ask myself: Can someone create more of this out of thin air?

If they can, they probably will

3. Build Multiple Income Streams

This was a big realization for me – a single salary, even a good engineering one, isn't enough anymore.

What I'm working on:

  • Building this blog (hence why you're reading this)
  • Learning new skills that pay well – learning new digital tools as an engineer
  • Looking at online business opportunities
  • Considering consulting work

Check out how I'm using AI to create new income in How to Use AI to Make Money

4. Think Global, Not Local

for me, this was the only way I knew to earn more money – I am not a natural entrepreneur or anything like that. Being an engineer in my home country or Canada just meant I was staying afloat but not going anywhere.

As an expat engineer I was finally able to earn enough money that I could invest – this was the key.

Being an expat also taught me to broaden my horizons on many things

Being an expat taught me this – don't keep all your eggs in one currency basket. I'm looking at:

  • International investments
  • Different jurisdictions
  • Various currencies
  • Borderless assets

5. Learn About Sound Money

This was a game-changer for me.

Once you understand what makes money "sound," and more importantly what makes the fiat money you earn incredibly not sound you start seeing opportunities differently.

Get started with Understanding Cryptocurrency: A Beginner's Guide for Expats

Practical Steps You Can Take Today

Right, enough theory. Here's what you can do right now:

  1. Audit Your Exposure
    • How much of your wealth is sitting in cash?
    • What's your real return after inflation and currency devaluation?
    • Are your investments actually preserving wealth?
  2. Start Small, But Start Now
    • Don't try to change everything overnight
    • Pick one area to focus on first
    • Build from there
  3. Keep Learning
    • Understanding the problem is half the battle
    • Follow people who've navigated this before
    • Join communities discussing these issues

Dive deeper into this mindset shift that I like to call From FIRE to SovFIRE: Sovereign FIRE

Why Your FIRE Calculations Are Probably Way Off (Sorry About This)

Right, let's talk about something that's been bothering me – how most people (including me initially) are getting their FIRE calculations wrong. Like, really wrong.

The Problem with Standard FIRE Math

Most FIRE calculations go something like this:

  • Take your yearly expenses
  • Multiply by 25 (using the 4% rule)
  • Factor in "inflation" (usually 2-3%)
  • Call it a day

But here's the thing – this is like measuring a leak in your boat while ignoring the fact that the water level is rising.

Understanding Your Real Hurdle Rate

Look, inflation is just part of the story. What you really need to think about is your hurdle rate:

Hurdle Rate = Real Inflation + Currency Devaluation from Money Printing

Let me break this down with some real numbers:

  • Official Inflation: 3%
  • Real Inflation: ~10%
  • Currency Devaluation: ~7-10% (or more)
  • Actual Hurdle Rate: 17-20%

Dive deeper into real inflation in Understanding Inflation: What It Really Is and Why It's Higher Than You Think]

What This Means For Your FIRE Number

Let's look at a real example. Say you need $50,000 a year to live on:

Traditional FIRE Calculation:

  • $50,000 x 25 = $1.25M target
  • Assumes 3% inflation
  • "Safe" withdrawal rate of 4%

Reality Check with Hurdle Rate:

  • Need to factor in ~15-20% annual wealth erosion
  • Traditional "safe" withdrawal rates don't work
  • Your actual FIRE number might need to be 2-3x higher

How This Changes Everything

This isn't just about adjusting some numbers. This changes your whole approach to:

  1. Saving Strategy
    • Traditional savings accounts are guaranteed losses
    • Need to think in terms of purchasing power, not nominal values
    • Time in fiat is risk
  2. Investment Choices
    • Must exceed your hurdle rate just to stay still
    • Need to look at real returns, not nominal
    • Traditional "safe" investments might be the riskiest
  3. Career Planning
    • Your salary needs to grow faster than you thought
    • Skills that help you beat the hurdle rate become crucial
    • Side hustles become less optional

Learn how I'm adapting my career in How to Use AI to Make Money

What You Can Do About It

  1. Recalculate Your FIRE Number
    • Use real inflation numbers
    • Factor in currency devaluation
    • Add a significant safety margin
  2. Rethink Your Investment Strategy
    • Look for assets that naturally hedge against currency devaluation
    • Consider productive assets that can raise prices with inflation
    • Think globally, not just in your local currency
  3. Protect Your Income
    • Develop skills that command premium pricing
    • Create multiple income streams
    • Position yourself in industries that can pass on inflation

Final Thoughts (And Why This Matters More Than Ever)

Look, I get it. When I first started learning about money printing and its effects, it felt overwhelming.

Actually, that's an understatement – it felt pretty damn scary.

But here's the thing – understanding this stuff is the first step to protecting yourself against it.

In my opinion it is better to hear about this and come up with a plan, now in 2024 rather than years or decades downt he line, realising you wasted all that time.

Why You Can't Ignore This

Trust me, I tried ignoring it for years. I was that engineer thinking:

  • "I'll just focus on my career"
  • "I'll save more money"
  • "The system must know what it's doing"

But here's what I've learned: Ignoring the rules of the game doesn't mean you're not playing it. You're just playing it blindfolded.

What's At Stake

Let's be real about what we're protecting:

  • Your hard-earned savings
  • Your future purchasing power
  • Your family's financial security
  • Your ability to retire comfortably

See how this affects retirement plans in The Fiat Standard Book Review

The Good News

Despite how heavy this topic is, I'm actually optimistic. Why? Because:

  1. We have more tools than ever to protect ourselves
  2. Information is freely available (unlike in past currency crises)
  3. We can see it happening and take action
  4. There are more options for preserving wealth than ever before

Explore these options in Building Financial Independence Through Alternative Investments

Your Next Steps

  1. Start Learning:
  2. Take Action:
    • Review your current financial setup
    • Start making changes (even small ones)
    • Keep questioning traditional financial advice
  3. Stay Updated:
    • Subscribe to my newsletter for regular updates
    • Join our community discussions
    • Share your own experiences and insights

A Personal Note

You know what? Sometimes I wish I could go back and tell my younger self about all this. But since I can't do that, I'm sharing it with you instead.

Man, If i had just bought bitcoin when I first head about it….

But, I know my future self will be glad I got in when I did

The world of money is changing fast, and the old rules don't work like they used to.

But once you understand what's really happening, you can start making better decisions for your future.

Follow my ongoing journey in How Being An Expat Has Accelerated My Financial Independence Journey

Want to Learn More?

Check out these related articles:

And don't forget to sign up for my newsletter where I share:

  • Regular updates on these topics
  • New strategies I'm trying
  • Resources I find helpful
  • Real-world examples and case studies

Let me know in the comments: What surprised you most about money printing? How are you protecting yourself against it?

Adam

I am on a journey to embracing a less stressful, more self sufficient life through my passions for renewable energy, off grid living and financial independence.

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