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How to protect your money against inflation

By Alex on Wednesday, Oct 20, 2021

Inflation can lower your standard of living and destroy your savings. It’s an increase in the price of goods and services that happens gradually over time. How can you protect your money against inflation?

How to protect your money against inflation


Inflation can lower your standard of living and destroy your savings. It’s an increase in the price of goods and services that happens gradually over time.


Why does inflation happen?

Prices can rise as a result of the increase in production costs and wages, or an increase in demand, such as we’re seeing exiting the global pandemic. Inflation can also be caused by government regulation – we are witnessing the US government injecting as much as 5,3 trillion dollars in relief payments.


How can you protect your money against inflation?


Invest in real estate

Real estate is known to grow in value at the same rate as inflation, or higher. Renting out your real estate creates a source of passive income, and if the property is mortgaged, with a fixed loan your payments will stay the same while the prices rise with inflation.


Invest in stocks

A good choice for investment is a business with low cost of production and strong profit margin, such businesses are usually healthcare companies and commodity firms.


A popular form of investment in recent times is crypto assets – you may have heard of Bitcoin. Bitcoin has a limited supply and there is no central entity controlling it that could just turn on the presses. Crypto investments may offer a higher return on investment than regular stocks, but also come with a higher risk of losing your investment. However, no form of stock investing is risk-free, so only go after this method if you are confident in your skills and information.


Invest in precious metals

Gold never goes out of style. For centuries it’s been valued highly and even used as a currency. Coming out of the pandemic, 2021 has seen a steady surge for all precious metals, not just gold. Precious metals are easy to purchase, and being used in a lot of the everyday products they’re sure to remain essential to our lives.


Adjust your spending

A not-so-obvious way to protect your money from depreciation is buying in bulk – by buying products with long shelf-life in bulk today you eliminate the need to buy them again later, when your money has less buying power.


Switching over to a car that consumes less gas can also be a good way to save money as the gas prices go up.


That concludes our short list of ways you can protect your money from inflation. Stay tuned for more news on Money Pro and personal finance.


Alex, Community Manager at Money Pro



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