Five basic rules for weathering inflation


Inflation continues to put a strain on consumers’ pockets. True, things are starting to slow down in our country. But too slow. Families who have to go shopping notice that the consumer price index for groceries remains high despite the weakening in August.

But how do you survive inflation? What measures must be taken to counteract the ever-increasing cost of living? Financial advisors offer detailed advice on how to overcome record inflation.

How to defend against inflation

Some have considered providing guidance on how to defend themselves Financial advisorwho, interviewed by insiderhave given some pointers on how to manage your savings and money Deal intelligently with inflation. And above all, not to be caught unprepared.

Be careful where you keep your money

The first step is to understand when you need your savings. If you don’t anticipate needing them for major expenses next year, it’s best to keep them in a high-interest savings account.

Malik S. Leea financial adviser based in Atlanta, believes that in all likelihood that is the case Accounts are designed to raise their interest rates in tandem with increases decided by central banks. If you plan to use the savings over the next one to three years, Lee says It is better to give preference to savings bonds.

Be careful when making home repairs

Dealing intelligently with inflation requires lending maximum attention to repairs and improvementsyou want to do at home.

Chloe A. MooreFinancial advisor explains that many of his clients They postponed work on the house because of the cost of materials, which continues to increase. At the moment they limit themselves to carrying out necessary repairs or modernizations, which nevertheless significantly improve their quality of life.

Consider buying the house

Condition strongly the hypothesis of buying a property is definitely the question Mortgage interest rates. If you’re considering making this investment, consider how much central bank decisions can impact individual families’ budgets.

Natalie Taylora financial adviser in Santa Barbara, California, explained that he helps clients calculate what rising mortgage rates would mean for their budget. In some cases, his clients have decided to postpone the purchase of a property to a later date via a mortgage.

It’s important to know your expenses

Do the shopping when you can High inflation can be dangerous. Especially when the individual consumer does not know how much more they are spending compared to the past. Second Charles Weeksa financial advisor in Philadelphia, it’s important to keep track of your spending.

If you don’t know that you’re spending $250 a month on groceries, you might not realize when you end up spending $300,” he explains. weeks -. However, if you know how much you spend each day, you can understand when prices are going up and adjust accordingly. Possibly reduce or buy cheaper substitutes.

Inflation will continue

It seems like no one is listening, but secondly Malcolm Ethridgefinancial advisor based in Rockville, Maryland, Inflation will continue. High food, gas and entertainment prices could continue for a while longer, probably for another year or so.

This is mainly due to the Federal Reserve’s plans to raise interest rates a few more times later this year – explains Ethridge. If they believe that demand is still high enough to justify a few more rate hikes, then there is a real possibility that inflation could rise a little further from here.

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