10 Aug, 2022
It is a rise in the general level of prices for goods & services. When this happens, people stop spending.
It’s important to know what level of inflation you’re facing so you can make smart financial decisions.
It can be of a type that makes soda cheaper, the kind that can make mortgage payments increase, or the kind that causes an increase in the cost of living for the average person.
Remember that inflation comes as a surprise. Get ahead of the curve by planning now.
Plan for extra costs & future expenses by investing in low-risk, high-return assets like stocks etc.
Ensure a cash buffer by saving 5-10% of your annual income. By doing this you’ll be extremely well off when inflation begins to rise.
Invest in assets that should increase in value over time. For example, you could invest in gold, which has proven repeatedly to keep its value during inflation.
Invest in assets that have been proven over time to keep their value even during periods of high inflation like oil or stocks.
Build a Cash buffer
Start building a cash buffer now. While you may not be able to protect yourself against every risk, this will protect you against rising living expenses.
Invest in profitable assets which are unlikely to lose value during this time. This way, you will be able to withstand higher costs while still protecting your assets.