Inflation feels worse than 3% (Here’s how I fight back)
The 5-step safety net every engineer friend asks me about
Hey friends 👋,
I’m a Senior Software Engineer in Berlin working at Big Tech. My day job is reading code reviews, occasionally breaking production (oops), and like many of you getting part of my salary in company shares. That’s nice, but since they’re all the same stock, it isn’t really investing. In 2023 I finally asked myself: “Wait…am I actually growing my money, or is it quietly leaking away every time I tap my card at Lidl (German supermarkets chain)?”
The Chicken-Fillet Wake-Up Call
Official inflation in Germany is under 3 percent. Cool, right? Except the 400 g chicken fillet I bought for €3.99 in 2024 is now €4.99. That’s +25 %—not 3 %. Real-life reminders like this pushed me to start investing back in 2023.
My Step-by-Step Learnings Since 2023
1. Six-Month Emergency Fund
Before anything else, keep at least six months of living expenses in an untouchable savings account. This is your safety net for layoffs, family emergencies—whatever. Don’t even open a brokerage account until you have it.
2. Choosing a Broker
With the 6 months buffer in place, any extra cash can go into investments—accepting that I could lose it tomorrow. Choosing a broker advice:
Low fees matter. My broker charges a flat €1 per trade, no matter the stock order size.
Protection matters. Deposits are insured up to €100,000 if the broker fails someday.
3. Stock Picking (or Not)
Trying to outsmart individual stocks felt like that scene in The Wolf of Wall Street:
Nobody—whether it’s Warren Buffett or Jimmy Buffett—knows if a stock will go up, down, sideways, or in circles.
One bad headline can tank a share price, and I don’t have time for deep research every minute. It is not my full-time job. Over the long run, markets rise, but consistently beating them? Unlikely. Unless you’ve won a gold medal in annual Chinese math olympiad in your high school. I am not. So my advice to close friends: skip single-stock bets.
4. Core Principles (Again)
Six months of expenses in cash: non-negotiable.
Accept that the portfolio can drop 50 % any day—no panic-selling.
If a 5 % daily jump in the S&P 500 excites you, you’re gambling, not investing. You should feel as calm as someone who missed a train but knows another arrives in ten minutes.
5. My Sleep-Easy Portfolio
75 % FTSE All-World ETF – one click, 4k+ companies (≈60 % US, the rest global).
20 % Crypto – Bitcoin and Ethereum: the biggest networks, minimum drama.
5 % Gold – a physically backed gold ETF.
Each month I invest 15 % of my salary, buying 2–3 of these options to rebalance toward the target percentages. Simplicity wins, it’s sustainable. I glance at the portfolio once a month, then buy.
Around 2 years In—Did It Work?
Yep. Double-digit gains so far. Could it crash tomorrow? Sure. Will I change the plan? Nope. During the Trump-tariff dip it fell, then quickly recovered.
Why This Might Help You
Simple enough to explain to your non-tech cousin.
Runs on autopilot, so you can live your life instead of tracking markets.
Removes emotion—a buggy dependency.
TL;DR
Inflation hits harder in real life.
Pick a cheap, regulated broker.
Build the most boring portfolio you can imagine.
Automate buys and ignore the noise.
That’s my story. If it resonates, smash the like button and drop a comment—I’ll share more of my personal learnings like this about different stuff!
Until next time,
Adlet
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