The US consumer price index rose 6.2% YoY, reaching its highest in 30 years.

At the same time, energy resources went up in price by 30%, and foodstuffs – by 5.3%. When prices began to rise in the first half of 2021, some experts, including the Oracle of Omaha, sounded the alarm.

“We’re seeing significant inflation,” Warren Buffett told attendees at Berkshire Hathaway’s annual shareholders meeting in May. “We raise prices, and people raise them for us.”

Increase your earning ability

When inflation breaks out, Americans may think so – prices rise and the dollar depreciates. Whichever way you look at it, making more money is a pretty correct approach.

Don’t forget about the stock market

Stocks have historically outpaced inflation, making them one of the strongest defenses against high prices.

You can use this to your advantage by investing in sectors of the economy that can benefit from rising prices, including food, technology, building materials, and energy.

Some brokers try to attract new clients by offering them a free block of shares at the beginning of the investment journey. And this is an effective thing that may well interest people who have not been involved in this business before.

Buy precious metals

Inflation fears usually draw attention to assets like gold and silver. They have shown good results over the past five years: the cost of the former has grown by 52% over this period, and the latter by about 49%.

During a crisis, the demand for precious metals often increases.

You can purchase gold or silver bars from specialized stores or banks. You can also invest in various ETFs.

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Benefit from the real estate market

Real estate has established itself as one of the most secure long-term investments you can make. In recent years, the US housing market has been on a serious upward trajectory.

If you are ready to act, start comparing mortgage rates today, which have been near historic lows since the beginning of the year, and get the best deal.

Low mortgage rates tend to go to borrowers with high credit ratings, so do your best to raise that credit.

Be careful with floating loan rates

If you have any floating rate debt, inflation can lead to an increase in interest payments.

This is especially true for mortgages. If you have a floating-rate mortgage, you can talk to your lender about refinancing and opt for a fixed-rate mortgage instead.

Consolidate your debts

If you are heavily indebted and refinancing your mortgage is not an option, there are still options to lower the interest you pay.

One of the proven ways is to get a debt consolidation loan at a lower interest rate. By combining all the debts into one, it will be much easier for you to plan your payment.

Reduce costs

You may have noticed that most of the offers here are money-spending. But spending cuts are also a great hedge against inflation.

If you haven’t checked your insurance rates recently, chances are you have to overpay. So do some comparison shopping and you can find a better deal to insure your car or save hundreds of dollars a year by opening up a cheaper policy for homeowners.

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Next time you shop online, try to find the best online prices.

Stay on course

Not everyone thinks that the recent surge in inflation is a sign of long-term problems. Buffett noted that Americans still have money to spend.

“People have money and they pay higher prices,” he said at a shareholders meeting.

So if you’re comfortable enough with your current finances to handle the higher prices, you can ignore all the hype.

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