The title of this article implies that there is an investment that offers profit and safety. In today’s fast-moving world, this sounds like an oxymoron. Nevertheless, it is possible to invest in a sector that offers you a guaranteed profit—with total safety. That sector is FOOD! The kind of food you eat on a daily basis. Some of you are already doing this by keeping food in excess of your daily needs in your pantry. What you may not be aware of is that the non-perishable food you store will cost 8% more on average, 12 months from now.
Monetary inflation is the way government raises revenue, and the result is the price inflation that everyone who shops for food is aware of. Either the price goes up or the size of the container is reduced. Thus your investment is yielding 8% profit—and you don’t have to pay tax on this profit. This beats money in the bank! There is an excellent book, written by John A. Pugsley in 1980. In 1981, it was on the New York Times bestseller list for about nine weeks. It is available today online as a free read. Here is the link: http://www.naturalbuildingblog.com/the-alpha-strategy-free-e-book/
It is important that you set yourself some goals as you begin to treat this as an investment.
- Set aside an area in your house or apartment that becomes your “food pantry.”
- Whenever you shop, look for specials on non-perishable items you like to eat—be it canned or boxed or bagged and add these items (to the extent that your budget allows it) to your grocery order.
- When you bring the new purchases home, mark today’s date on each item or group of items using a felt tip marker or a piece of masking tape and be sure to rotate newly acquired foods behind previously purchased stock.
- When you are planning your next meal, instead of rushing out to a store and paying full price, while putting miles on the family car, pick something from your pantry.
- Include a minimum amount that you are willing to invest in your food investment at each trip to the grocery store. If you were unable to spend the designated amount, set the funds aside for the next trip, or purchase some items that never go on sale. This way your pantry will continue to grow in size and value.
- When you are satisfied that you have 12 months supply of food set aside, start thinking of things you use all the time, such as toilet paper, hand towels, tooth paste, and shampoo.
- For those who would like to take the next step, consider “long-life” food, such as NUMANNA. Shop online for a source.
- Here is a BONUS! When those around you panic because of a predicted flood, hurricane, or civil disturbance, you can relax in the knowledge that you have prepared your family—well in advance.
Peter Degraaf is a self-employed investor with over 50 years of experience. Google him or visit www.pdegraaf.com.
