12 Ways For You To Beat Inflation

The Digerati Life has a lengthy article that offers 12 tips on how to help beat the eroding power of inflation. Broadly speaking, you should first recognize that inflation erodes purchasing power in the long run and take steps to insure yourself from it, while also being “mindful of when inflation rates rise” and taking additional measures during those periods.

Insure Yourself From Inflation For The Long Term

  • Buy a house.
  • Consider landlording.
  • Build or preserve your earning power.
  • Own your own business.
  • Keep a diversified investment portfolio.
  • Consider using inflation-indexed securities in your portfolio.

Counteract Inflationary Pressures With Additional Moves

  • Keep money in short term funds.
  • Watch interest and yield rates and lock them in when you’re comfortable.
  • Invest in commodities.
  • Invest in gold.
  • Rework your debt.
  • Cut your spending even more.

While it’s not a huge threat in today’s economy, over time it can eat away at that retirement nest egg you’re working on, and then you’ll have to end up fending for yourself in a poorly maintained, investment group-owned nursing home.

“12 Ways To Beat Inflation: Don’t Let Rising Prices Get You Down” [The Digerati Life]
(Photo: Getty)

Comments

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  1. iMike says:

    Inflate your debt away. Stretch repayment of low interest rate loans as long as you possibly can. Student loans are particularly good for this.

  2. anatak says:

    “Invest in gold.”

    Thanks. That was nice. I needed a good laugh.

  3. mandarin says:

    Would investing in gold companies make a difference?

  4. Pinget says:

    Vote for Ron Paul.

  5. zolielo says:

    @mandarin: Much better than the actual bar of gold in which redemption is a pain.

    Inflation-adjusted bonds is the tip they left out.

    Some tips I think that I am going to keep to myself. But really there are a lot of wise moves one can make.

  6. swalve says:

    I thought I remember a study where the purchasing power of gold has remained flat pretty much throughout history?