4 Non-Traditional Ways To Protect Your Money Against Inflation
Here are a few of my favorite tips and tricks to protect your money against inflation. Read on and see which ones you can use!
So, what can you do to protect your money from inflation? First, let’s talk about what inflation actually IS.
Inflation is basically a rise in prices, which can be translated as the decline of purchasing power over time (per Investopedia).
Or, to put it another way, prices go up, and the purchasing power (or value) of money goes down.
While you might not have a control over how and when inflation hits, you can do something to protect yourself against it.
There are a few key steps you can take to protect your money against inflation when it happens. What can you do? Let’s get into that here!
First, look at both your budget and your investment strategy.
Adjust both your budget and your investment strategy as inflation rises and the velocity of money (that is, how often money exchanges hands or is in circulation) slows down. A decrease in the velocity of money ultimately decreases the value of a dollar. So, you can see how making adjustments to both your budget and investment strategies are key in times of high inflation.
Now, how exactly do you make these said adjustments? I’ve got a few non-traditional steps you can take to get ahead of this so you can protect yourself and your assets during high inflation times.
My Top 4 “Non-Traditional” Tips To Get Ahead Of Inflation
1. Up-Cycle Your Purchases
Basically, “up-cycling” means buying something that already exists versus buying new. With the cost of manufacturing and materials rising, up-cycling can save you a lot of money. One way to do it is to buy second-hand items instead of new ones. Another way is selling items you no longer need. This provides an opportunity for someone else to up-cycle themselves (Ebay, anyone?).
2. Evaluate Your Savings (and adjust if necessary)
Is your savings account doing its best job, or is it just sitting there losing money? Most banks offer 0.02% interest on savings accounts. So when inflation rises above 5%, you’re basically chipping away at your emergency fund savings each year. One option to change this is to look into credit unions as opposed to banks. For example, my local credit union offers 6% on savings. So look to your local credit union if your savings isn’t up to par in your bank.
3. Give Yourself A Raise
Be sure to adjust your budget to get ahead of costs going up in the future. As a business owner, consider giving yourself a raise. If you’re an employee and you aren’t sure if you have built in cost of living (COL) adjustments in your contracts, now would be a good time to review this.
4. Start Your Own Garden
What better way to control your food supply than to create it yourself? There are many ways to start growing your own food, even if you don’t have a lot of space or don’t have a “green thumb.” For example, you can buy produce at the grocery store, then plant the seeds that are left. I buy scallions and ginger from the store, and I plant them, too. I also harvest seeds from peppers, tomatoes, and other produce items to plant again. This multiplies the value from a one-time purchase (not to mention that gardening is a lot of fun!).
These are a few of my favorite tips to help protect you and your money against inflation. You might not always have a say in what happens, but you DO have a say in how you respond. Use these tips and tricks to stay ahead of the game!
Now, how about you? Which one of these tips seems like the right one for you to implement now? Leave me a comment and let me know how you intent to get ahead of inflation and protect your money!
Until next time,
Love, Light, and MONEY, Honey…
Kaylee
Great ideas, all of them, Kaylee! I have always liked the notion of “thrift shopping” only, as you pointed out, high-end, perhaps even brand new, items that other folks find out they no longer are interested in keeping. Many times when I’ve thift-shopped, the shelves and bins have items with the purchase tags still on! Such fun to have such “finds!”
Thank you for the great article! Looking forward to more timely and valuable hints!
I find the “older” stuff is better quality for the price too! Happy thrifting 🙂
Hi, Kaylee, Thank you for the additional tips! I’m especially fond of the idea regarding the credit unions. There are many in our area, and they are eager to court their members’ business. Great reading as always today!