From appliance stores in the United States to food markets in Hungary and gas stations in Poland, rising consumer prices fueled by high energy costs and supply chain disruptions are putting a pinch on households and businesses worldwide.
Rising inflation is leading to price increases for food, gas and other products and pushing many people to choose between digging deeper into their pockets or tightening their belts. In developing economies, it’s especially dire.
Nearly two years into the COVID-19 pandemic, the economic impact of the crisis is still being felt even after countries raced out of debilitating lockdowns and consumer demand rebounded. Now, another surge of infections and a new coronavirus variant, omicron, are leading countries to tighten their borders and impose other restrictions, threatening the global economic recovery.
Omicron has raised new fears that factories, ports and freight yards could be forced to close temporarily, putting more strain on global commerce and sending prices even higher.
Here are a few creative ways Canadians can out smart Inflation:
#1 Grow Your Income :
When the economy is struggling, a healthy income is essential to protect your money from inflation. This is also a good way to reduce your spending. Inflation is a factor to consider when developing your financial plan. Saving more money will allow you to invest more, which means more diversification.
#2 Invest in Stocks
If you’re looking to protect your money from inflation, investing in stocks can be a good way to increase your cash flow. Although there are minimum entry costs to invest in these products, many of them have higher returns than bonds. By securing your money with mutual funds, you can increase your savings. Purchasing a stock will allow you to enjoy greater returns. You can purchase index-linked securities, or TIPS. These are US Treasury bonds with an inflation index linked to them.
#3 Invest in Commodities
Commodity prices and natural resources can also help you protect your money. Inflationary situations often produce high levels of profits. If you’re trying to protect your assets against inflation, you should invest in commodities. These are more stable and will help protect your money from inflation. By purchasing commodities, you can hedge your portfolio against future increases in value. By doing this, you can protect your assets from the deteriorating value of your assets.
#4 Purchase Real Estate
If you’re worried about inflation, you can use real estate to protect your money. The prices of real estate are rising as well, but the value of these assets is still lower than that of real estate. For this reason, you should look for properties with high potential. If you want to protect your savings from inflation, you need to consider the risks and costs involved with buying a home. Inflation is a risky investment that can be expensive.
In conclusion
Inflation is a problem that can make you feel helpless. If you have cash and are concerned about inflation, a fixed-rate portfolio is the best option. If you’re concerned about inflation, you can use a diversified portfolio, such as stocks, bonds, and cash. This will help you protect your savings from inflation. Moreover, you’ll be able to control your spending. When the inflation rate increases, it is vital to have more assets. Having too much cash will make you vulnerable to high prices and will devalue your investments
