Investing or saving in this time of hyperinflation?

[btaliat]

The recent inflation is global and all the countries are feeling the heat. Though many theories have been said about this inflation. While some people claim that it is the Russian-Ukraine war, others have attributed the inflation to the effects of lockdown. Citizens of almost all the countries have however found themselves in entanglement of whether to save or invest.

Those that claim to save are of the opinion that there is no much between saving and investment this time of hyperinflation. I could remember last week while s friend called me to borrow some money. He claimed that the investment he has been hoping on didn't save him. He invested on bonds last five year and when he collected his money last week. The money is as good as nothing as it has lost a big value.

While citizens are still on the verge of choosing between investing and saving, they are challenged with what the future holds for their saved money. Or what can you say about someone that save for a year and still doesn't get the right value for the money saved?

As citizens still struggle to find how to balance the two, they still hope for the better global economy.

 

[Jasz]

Savings and inflation are both a part of life, but they can be difficult to avoid.

Savings are an important part of your financial situation: they help you plan for the future and make sure that you don't run out of money when you need it most. However, savings also introduce the risk of inflation—meaning that the cash value of your savings may decrease over time as prices rise. Inflation is a normal part of the economy and it happens because more money is being printed and circulated throughout the world's economies than there are goods available for purchase. This causes prices to increase in order to keep up with demand.

In order to avoid inflation, it's important to invest your savings wisely and spread them out among multiple sources so that if one loses value or goes down in price, another one will increase in value or go up in price. This idea is not only applicable to savings alone, but investment as well. You need to diversify everything so you won't lose everything. Savings has its risk and so investment. For example, if you have $5 million dollars available for investments this year but only have time or interest to manage two different portfolios (portfolios A & B), then investing all of your money into Portfolio A would be risky because if something happened to Portfolio A—like its holdings were sold off at a loss—then Portfolio B would not be able to offset this loss by earning back any lost value from it.