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]