Real money balances are used for spending and investing. When inflation affects these balances, investors adjust their portfolios to protect against it. As real balances decrease due to inflation, they can have conflicting effects on how much an investor values their wealth. On one hand, lower balances can lead to reduced spending, which can increase the value of wealth. On the other hand, lower balances can also make spending more costly. If the second effect is stronger, investors may actually protect against inflation in a surprising way.