Inflation. Everyone is talking about it and how it is drastically affecting our everyday lives. Every day we hear about prices rising on the news or social media but no one really has a solution to the problem. Most are saying we just wait it out, but no one knows how long this will last. To help survive inflation we need to be making moves now that will help us down the road. There are a few simple ways you can fight inflation and help your family handle the rough months ahead of us. Saving money is a huge step and I can help show you how to do that.
What is inflation?
An economy experiences inflation when prices of goods and services increase gradually over time. A rising general price level lowers the purchasing power of each unit of your money; consequently, inflation corresponds to a reduction in the purchasing power of money. Inflation is a normal part of the economic cycle but, when prices begin to spike much faster than normal it becomes much more noticeable and can sometimes lead to a panic like we are seeing now. Inflation is seen across the board in all areas of the consumer economy though it is most often noticed by the average person when it hits the cost of staples like food and household goods.
How can you fight inflation?
To fight inflation requires you to be intentional with how you use, save, and invest your money. It is not uncommon to hear a lot of advice on ways to fight inflation like going out and spending your check right away. A common method used in areas hit by hyperinflation. Some jobs to help fight the rising costs are even offering benefits like being able to take out your pay for your work daily. If you are not experiencing hyperinflation there are some much less drastic ways you can help to fight the rising costs.
Invest your savings
While everyone should have some emergency savings that are available in cash and in the back where it can be pulled out and used right away if something goes wrong in life not all of your savings should stay in this form because this money will be worthless over time. Investing in something that will grow in value over time like precious metals, stocks, and cryptocurrencies is a great way to help fight inflation. As the values of these investments go up your money will maintain more of its value.
As a warning, investing your savings does come with a risk so do not invest all of it. Split your investments into a variety of things to reduce some of the risks in investing. Apps like Stash are a great way to start and you can watch them closely.
Build a stockpile
Building a stockpile of food and household goods is a great way to help fight inflation. The cost of rising cost of everyday items is where most of us feel the pain of inflation the most. By stockpiling the things your family needs and uses every single day you can pay the lower prices of today for the items you will need to use in a few months when the price is much higher.
While paying off debt is important in these items you may want to consider putting any extra payments you would be making into goods you will need later seeing the value of the dollars you have already spent will not be changing.
To make the most of your stockpiling you should watch for sales. Sales right now will get you times today for nearly the price of what you paid for them without a sale a couple of years ago. Sales are the best way to build your stockpile for as little as possible to get the most value for your dollar.
Avoid making purchases that deplete in value
Now is not the time to buy something big that will lose its value over time. This includes things like cars that tend to drop in value greatly over time. Instead, make your investments into things that gain value as time goes on. This will help to fight inflation because the value of your goods goes up along with inflation rather than down. When things level back out you won't take as much of a loss when the value goes down.
Look for ways you are wasting money
One way to fight inflation is to stop spending money on things you do not need. Frivolous purchases add up but in times of inflation, they can be a bigger drain on your wallet. Make a point to avoid frivolous spending now and make a list of things you want instead of buying them. If you still want the item after the inflation rate drops back down you can get the item for a lower cost and feel confident that the investment is worth it seeing you still wanted it after a long period of time.
Cutting out expenses you do not really need can be a great way to fight inflation. Go through and look for subscription services you can get rid of. Often we have more streaming services than our families need. Try switching to a new one each month to keep your family content with variety rather than paying for multiple services every single month.
Look for ways to make a little extra money
The fact is as inflation goes up your dollar is worth even less than before. Unless you have a lot of extra money each week before the prices begin to rise you need to work a lot harder to make your paycheck cover all of your expenses. This leaves you with less money for taking care of everyday needs as the prices keep going up it will only get worse.
Work to find little ways you can earn extra money. From selling credits to joining the gig economy and performing services and tasks outside of your day job there are endless ways to earn more money for your family. It may take some creativity but anyone can find a way to make a little extra money here and there if they put the effort into it