Inflation-Proof Your Life: 6 Smart Strategies for a Rising Economy

 

The rising cost of living is leaving many with big, unexpected bills that are putting them at risk of a personal financial crisis. Even those previously considered ‘well-off’ are starting to feel the wobble as the cost of living rises. Luckily, there are lots of ways to inflation-proof your life and become more financially secure. You can get off to an easy start with the six strategies below: 

Get Specialised Assistance

Tools like income tax calculators and compound interest calculators offer free and easy ways to get a clear picture of your current financial position. Armed with this information, you can make more informed decisions about everything from what to do with your tax refund to whether that loan you’re considering will be worth it. 

Of course, nothing beats the personalized advice you can get from skilled financial professionals. If you think you can’t afford to see a financial advisor, it’s worth looking into services in your area designed for those who are struggling financially. Their help may prove invaluable as you strive to salvage your financial health.

Drip-Feed Your Investments

Also known as dollar-cost averaging, this technique allows you to slowly build your savings and avoid the potential risk of a lump sum investment plummeting with a market drop soon after you’ve made your move. Even small steps like investing the change from purchases can add up over time. Best of all, they get you in the habit of steadily investing.   

Think Long-Term

Financial markets can be volatile, but long-term investments mean you can outlast the dips and benefit from the eventual upward curve. This is why so many people invest in real estate. Though the market fell 0.8% in 2023, it’s expected to recover and be nearly 15% higher between 2025 and 2028. By investing long-term, you protect your money and benefit from the long-term rewards. 

Spread Your Money Around

One in ten Americans have no savings, but many of those who do make the mistake of storing their savings in one place. It is risky to hold onto cash this way. If that one area of savings goes wrong, you’ve lost everything. Equally catastrophic is the fact that you’re restricting its growth opportunities. 

Instead, with caution and professional advice, spread your money around in various savings accounts, investments, and other financial opportunities. Known as diversification, this is the foundation of a successful long-term investment strategy that serves you as well in economic peaks as it does in economic dips. 

Break Free From Money Traps

The average American holds over $20,000 in debt, and for many, the cycle of debt feels inescapable. However, in a rising economy, there has never been a better time to break free. To achieve this, consider: 

  • Creating a detailed list of all your debts, including interest rates and up-to-date amounts
  • Seeking free financial advice from local non-profits
  • Negotiating with creditors to lower repayment rates
  • Consolidating your debts
  • Prioritizing debt repayment ahead of treats like holidays

Be Honest

As scary as it is to look at a bleak financial situation, it is far more horrifying to ignore it and allow it to create an even darker financial future. One in five young Americans has debt collectors after them because they’re refusing to face the situation they’ve gotten themselves into. Even without debt, many struggle with low financial resilience. To avoid this trap, be honest with yourself and work through your current situation – your future self will thank you for your bravery. 

With the tips above, you can create a much stronger financial position and a better future, arming yourself with the ability to withstand unpredictable economic times. 



 

 

 

 

 

 

 

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