How Do You Protect Yourself From Inflation

Jasz

VIP Contributor
To understand how to protect yourself from inflation, it helps to first understand inflation. Inflation is the process of continual increases in the general level of prices of goods and services in an economy over a period of time. There are various measures for calculating inflation, but the two most commonly used ones are the Consumer Price Index, or CPI, and Producer Price Index, or PPI.

Like I said Inflation occurs when the price of goods and services increase. Although inflation makes certain goods more affordable, it can have a negative impact on people in several ways. Inflation is just what you have to learn to protect yourself from.

Learning to live in a world of inflation requires planning. Inflation is not simply about planning for higher prices in the future. You must also plan for how you will use that money in order to mitigate its effects.

Invest on things inflation can have negative effect on, no matter how bad it's

I would think investing in gold, a reliable stock market etc. will serve as a measure to counter this situation. What do you think?

You can drop your comments so we can talk more on this situation that looks inevitable, yet keeps appearing at some phases in our nations.
 

Alexandoy

VIP Contributor
I have a substantial amount of money that is presently resting in the bank. It is important for the money to be invested so that the value can go in stride with the times otherwise the value of your money will be eroded by inflation. Think of $20,000 now and after 5 years the value may just be worth $18,00 or $19,000 at the most. But if you had invested the money that earns a meager interest then your $20,000 can be $21,000 after 5 years but chances it may be more. I have checked the time deposit in the bank but the interest rate is very low that it is like not earning at all. My plan now is to invest in something concrete like real estate and stocks. My stock investment is doing good with the market price slowly increasing but I am waiting for the price to dip so I can buy more stocks.
 
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Deleted member 28127

Guest
It is a matter of luck if the price increases or decreases during the years.
 

Caramelle

Active member
Investing in real estate is one of the ways to protect your wealth against inflation. This requires funds as well as a good knowledge of real estate attributes that make it a good place for investment. You'll have to look at the developmental trends and project how the property will be valued years or decades from now. Big companies are expanding in many different places and when a chain of department stores and supermarkets build their presence in an area, you can expect the prices of properties in the vicinity to increase as well. Places near tourist attractions can be developed into resorts and other hospitality businesses. Other things to be considered in choosing a property for investment include the safety and security of the place. You wouldn't normally invest heavily in properties lying along the earthquake fault line or in low places that are prone to floods and typhoons.​
 

Good-Guy

VIP Contributor
Combating inflation is not that easy at all. If it were that easier, then we would never have any kind of problem with inflation. usually, the only thing a trader or merchant would do is increase the prices of products, as they have no other option. A good way to combat interest is to invest in the assets. This is because despite high inflation rate, the value of fixed assets do not decrease rather it increases with time. Capital is also asset, but since inflation directly affects the value of money in a specific country, possessing a lots of capital would not help you until or unless you build capital. This exactly what merchants do!

They build more capital by raising the prices of commodities when the inflation increases! These are some basic economical problems we need to analyze if we want to combat inflation. The government could also play a huge role in decreasing inflation by using the natural resources of the country. Unfortunately, it is not that easy as it sounds. Due to high inflation in some countries, many people just choose to leave the country when things become unbearable for them and this also affects the country a lot.
 
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