mariorotty
New member
How much does inflation affect when trying to save? What would be the best way in this case? Thank you very much
saving and inflation
- Thread starter mariorotty
- Start date
Jasz
VIP Contributor
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. 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.
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. 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.
Similar threads
