Finance

How You Can Beat Today’s Inflation

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A number of environmental and economic circumstances have left the value of the American dollar at a record low. Also known as “inflation”, this economic dive impacts every individual regardless of social status or location. “Beating” inflation can seem impossible, as purchases are basically inevitable for daily function—however, there are a few things you can do to prevent your savings from dwindling quickly, and even come out on top when inflation levels have corrected!

Invest in Stocks

The first thing you should look into is investing in stocks. Money set aside in the stock market is not only safe from the devaluation of the dollar in inflation, it also makes you more money over time. As you research what companies to invest in, be aware of the risks and projected success of your investment, so that you are prepared for the wait until your payoff. Furthermore, it is a wise move to invest in multiple companies; doing so maximizes your money’s opportunity and odds for profiting you! Your equity investment may also provide you with more beneficial, long-term tax treatments, helping to prevent the negative impacts of inflation.

Invest in Real Estate

Real estate is another smart investment. The housing market today is seeing all-time highs; properties are worth more than ever before. Investing in real estate creates a win-win situation for both you and your tenants—you have a steady income from the property rentals, and your tenants have the space they need! Whether you choose to invest in residential properties, commercial properties or empty land with the potential for a variety of purposes, your ownership opens a lot of lucrative opportunities for times like these, when making extra money to cover the costs of inflation is especially valuable.

Buy Inflation-Protected Bonds

A bond is a sort of agreement between an investor and another entity, in which the entity agrees to pay interest on their debt to the investor. (Basically, it is like a loan rather than an ownership of stock.) The great thing about “inflation-protected” bonds is that when inflation rises, so does the payment of the bond. And when inflation falls, the payments do as well. This reflection of economic trend and payment is a safe assurance that you will still be making money on your investment, rather than being paid a less-valuable sum. Your money is safe and you are ensured a real profit.

Stock Up On Essentials

Make sure that you are prepared for inflation periods when day-to-day materials skyrocket in price! Essentials include anything and everything that you use on a daily or weekly basis. From the obvious needs like food storage and water surplus, to lesser thought-of things like toilet paper, cleaning supplies and toiletries, you will want to create a thorough list of the things you will not want to have to buy when prices increase drastically. Fuel is another essential that you should prepare your home with. 120-gallon propane tanks are adequate for homes and small businesses. This will ensure that your home has the ability to self-power when you need it to! Don’t be left in the dark, or without the basic products for daily life. Protect yourself from damaging spending by preparing now.

Lower Daily Expenses

You can also take some time to call around to the companies you spend money on every day without thinking about it! Your cell phone bills, car payments, cable, heating and air, and any subscription of any kind are each on an expense that may be able to decrease with some pushing on your part! Take advantage of any special deals they offer, or any deals you qualify for (because of your age, occupation, circumstance, etc.) Or, if these companies are unwilling to cut back on your monthly bills, ask about extras they can throw in for free! Evaluate what you do and do not use and make cuts wherever possible, and then reach out to the companies you’re paying to adjust prices as much as you can.

Put Off Major Purchases

Patience is a key to successfully overcoming inflation impacts. As hard as it is to put off those exciting purchases you’ve been looking forward to, it will serve you much better in the long run to just put off that expense until the market has righted itself. Consider it an investment in time, if that helps! The money you would have to spend now to get a product, could be spent on that same product and much more if you are willing to wait for it a bit. So, if at all possible, make one of your first lines of defense against inflation not spending on hefty purchases (at least for the time being!)

Play the Game with Your Contributions to the Market

You’ve paid for your own education or training with the old, less valuable dollar. Consider inflation a time to, like everyone else is doing, boost your own prices of the services you provide with that education or training. As you develop your knowledge through experience or further training, you can fairly price your services at those higher levels that will help you maintain the profits you need for sufficient or steady income. Consumers are willing to pay—even in inflation periods—higher prices for higher quality care or results.

Invest in Tradable Materials

Consider the valuable products that you can own and use for trade. Although the dollar is the first product we associate with value, other things like gold, oil, and food products like meat or even coffee are all products that people rely on. Therefore, they are inherently valuable things to own—you can feel confident that your stock of these products will be as desirable to individuals during inflation and after, as they are today. Pad your invisible investments with some physical investments like these!

Inflation is frustrating and can cause some serious anxiety. Protect your finances and buffer your savings with these preventative measures against the negative effects of the dollar’s decrease in value!

Read this next: How to Start a Business With Some Safety Rails in Place


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