Skip to content

How can you save money during an inflationary period?

Inflation is at an all-time high and it’s getting worse. Inflation has been surging worldwide for months, and it’s impacting the prices of nearly everything.

If you’re worried about your money, here are some ideas from recent research on how to keep your money safe during this period of growing inflation.

Stock Investment

According to CNBC, the stock market’s rate of return tends to outpace inflation, albeit growth may be slower during these times.

It’s simpler than ever to get started in the world of investing if you’re new to it. You’ll need to register an account with a brokerage or trading platform to do so. The best free stock trading brokerages provide the most investment alternatives, user-friendly technology, excellent customer service, and educational materials.

Finance your home

According to Forbes, now is an excellent time to borrow because interest rates are at historic lows. If you have a long-term mortgage, you will be safeguarded against rising prices.


Prices for basic commodities such as oil, metals, and agricultural items tend to rise in lockstep with inflation, thus they can act as an excellent inflation hedge.

However, investors should be aware that commodities may be exceedingly dangerous, according to Arnott. Commodity prices are mostly determined by supply and demand, which may be very unpredictable. This makes them a dangerous investment, especially for investors who use leverage: the chances of profit are great, but the risk of loss is also considerable.

Buy, don’t rent

During an inflationary period, the market usually favors the buyers over renters. Landlords typically raise rents in conjunction with inflation. If you’re a homeowner, though, your payments are fixed, and your home’s value is likely to increase over time.

Short-term bonds

Maintaining cash in a CD or savings account is similar to keeping money in short-term bonds. Your funds are secure and easily accessible.

In addition, if increasing inflation leads to increased interest rates, short-term bonds will do better than long-term bonds. As a result, the advice is to stick to short- to intermediate-term bonds and avoid anything long-term-focused.

Consider your options before making a purchase

Buy durable and cost-effective things, such as clothing, washers and dryers, and automobiles. If your automobile consumes a lot of petrol, investing in a more fuel-efficient vehicle or an electric vehicle can save you a lot of money over time.

Don’t put off big purchases

Anything you know you want to buy and have the funds to purchase should be purchased sooner rather than later to avoid price increases. Cars, home renovation projects, and vacations have all increased in price in the last year, and there have been worries that shortages may put even more upward pressure on pricing. If you can afford to schedule your summer vacation now, for example, you may save money in the long run.

 Buy Physical Gold and Silver

You may totally protect yourself against inflation by investing your money intangible assets such as gold or silver. The price of these precious metals tends to rise when the value of the dollar decreases.

Bottom Line

To secure your money, you need to invest against inflation.

Savings can be eroded by inflation. So while having a little money on hand is a good idea not to keep too much in savings.

Instead, make your money work for you and plan for inflation. Choose an investment plan that will give you a return that is at least equal to the inflation rate. Look for assets that increase in value, have their own fundamental value, or pay a variable interest rate.

You can retain the value of your money by keeping up with inflation. And who knows, maybe you’ll be able to grow it.

This article is for educational and informational purposes ONLY and should NOT be considered as financial advice whatsoever.

Leave a Reply

Your email address will not be published. Required fields are marked *