Secrets to Protecting Your Money During Inflation

secrets to protect your money

It doesn’t matter if you are buying a new car or a cup of coffee. You must have noticed by now that the prices are going up at a steady rate. With inflation rising more than it has in 40 years, you are likely already feeling the financial sting. In this article, we’re going to share the secrets to protecting your money during inflation. 

Table of Contents

What Does Inflation Mean?

Typically, inflation occurs because of an imbalance in supply and demand. This time around, most of us are feeling the biggest pinch in the prices of gas, food, and housing.

The problem is that these things are an important part of our daily lives. We need them to get around and stay alive. That means they are an expense that we cannot completely omit from our lives.

As a result of these rising prices, it has become harder for all of us to keep our heads above water.

But just because prices are climbing up doesn’t mean you have to be worse off financially. You can still rethink your expenses and protect yourself from inflation.

The hard truth is that inflation may not ease up any time soon. The only thing we can focus on while it ends is what’s in our control.

Down below are a few things I suggest making a big impact on your inflation savings. These tips span across all important categories including food, gas, and travel. These strategies will help you cope a bit better with the toll inflation can take on your mindset and finances. 

1. Create an Inflation Budget

According to a survey, about 80% of people budgeted their expenses for 2020. This is a huge (and pleasant) increase from 68% in 2019.

If you are among the 20% who still haven’t mapped out their spending, now would be the time to do it. Even if you do budget, now may be the time to tighten the budget strings a bit more.

Prices are fluctuating a lot recently. So, keep strict track of how you are spending your money and what you’re spending it on. A few simple steps can take you a long way in fighting inflation and rising prices.

2. Maintain a Fund

A fund has never been more important than now. Prices are soaring and it can be tempting to seek out investments that will pace with inflation. While I suggest doing that as well, the more important thing to do is set aside enough money to overcome any sudden financial emergencies.

If you have debt, it’s better to pay that off first and then invest your money. If you have medical bills to pay, it’s better to pay those off first rather than thinking about investing immediately.

3. Up Your Savings on Food

40% of food waste comes from our kitchens. This statistic is not only sad but also represents that our food habits are financially counterproductive.

For this reason, you should be aware of what you’re buying. Buy with more precision and consume with care. Take regular inventory of your kitchen cabinets before hitting the grocery stores.

Moreover, you should also make it a point to save and consume leftovers as much as you can. Not only will this contribute to the sustainability of the environment, but it will also help you save. Additionally, you should go for frozen food more often. Frozen greens, fruits, and fish are all great options. You can save at least 30% to 50% on the total price by going frozen.

4. Find A Local Farmer

Another smart move to make when it comes to saving on food is to diversify where you shop. That means going to different stores and checking for deals on grocery items.

You can even find a local farmer who can provide you with food. You can build a contract with them and pay them yearly with a reasonable fee.

In this way, not only are you saving money but you are also getting to eat organic and fresh food right from the source for less money.

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5. Limit the Damage to Your Budget by Saving on Gas

While the enormous gas prices gave birth to a plethora of funny memes, the situation wasn’t exactly kind to our wallets.

To save money on gas during inflation, you can sign up for fuel savings programs. These programs often allow you to save 5 to 10 cents for every gallon of fuel.

If you use your car regularly, you should also search for the cheapest gas station. Another option is to make use of a gas credit card. This can give you rewards. Or it may allow you to get up to 5% off on gas station purchases.

6. Save Money While You Travel

Getting away from all the madness of rising inflation and economic stress and going on a vacation might seem attractive right now. Trust me, we all want that. 

Prices, though, are way too high right now. So, it might be in your best financial interest to wait. If your job allows it, consider flying off-season or during off-peak times. These times allow for the best rate.

Along with that, plan your travel way ahead of time. This will allow you some peace of mind for budgeting your trip. It will also give you a ton of options to find deals and discounts.

If possible, bank on used reward miles or card points too. Many people might have racked up flight rewards during the pandemic since travel was low during that period.

7. Rethink Your Housing Needs

The single biggest expense that most families – and even individuals – have is the cost of a house. For this reason, it only makes sense if you want to truly think over your housing needs during inflation.

Many couples may want to jump into buying a home right now. This is because they compare the basic cost of the mortgage to rent. They are unaware of all the additional costs that come with being a homeowner.

There are many advantages to owning a home. But you have to consider the pros and cons of the present situation. You may think you are ready to be a homeowner. However, take some extra time and do the math of what it will be like to buy a house during inflation.

8. Borrow Stuff Whenever You Can

We all have gotten suckered into buying new and shiny stuff at one point in our lives. But there’s a lot of stuff that you can simply borrow from friends or family instead of getting a new one.

If you don’t know anyone to borrow from, look for Facebook groups or initiatives focused on borrowing in your area. You can also lend some of the stuff you have to help others out.

9. Create a Buying Day and Postpone Big Purchases

The biggest goal of online retailers is to make you buy things on a whim as quickly as possible. While this is convenient, it’s not the best thing for your wallet.

To win the battle against the mindless spending that can happen online, you can delete online retailer apps.

If you don’t want to delete the apps, you can schedule one day for shopping. Rather than making purchases instantly, load them into your cart and wait for the designated shopping day.

If you still think you need/want it, go ahead and buy it. It’s very much possible that an item can be important one day and not so much on the other. 

You should especially apply this technique for big purchases. An advantage of holding off on big spending is that sometimes the prices can drop. In those cases, it can be beneficial to hold out.

10. Diversify Your Investments

When something like inflation hits, you need to create a mix of different investments. This is because you want to maintain your purchasing for the long term.

Therefore, consider investing in a mix of ETFs, commodities, bitcoin, digital products, and inflation-protected financial instruments. I suggest doing this kind of investment only if you have acquired knowledge about these financial instruments and know how to apply them.

When you have a diverse portfolio from the start, you will be able to protect yourself against inflation and unpredictable situations.

Ideally, you should look to target long-term investments that span a year at least rather than focusing on short-term movements.

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11. Explore New Ways of Growing Your Assets

In addition to saving more, you should also look into growing your assets. You should find more ways to increase your sources of income. My article on 10 secret side jobs to generate extra income is a great resource for this purpose.

I strongly suggest diversifying both your active and passive income. This way, you would be able to make double the difference in which case your assets would be greater than inflation.

For example, historically speaking, the inflation rate is close to 5% annually. However, according to Bloomberg, the inflation in the USA accelerated to 9.1% in June 2022.

High inflation means that the prices of goods are high, but the value of money stays the same, getting fewer items for the same amount of money.

So, what do you do to protect your money? In these situations, your money could be invested in silver or gold, even in diamonds. Precious metals have been shown to provide immense investment protection during the financial recession. Again before investing in precious metals get the necessary knowledge to do so.

If you enjoyed this article on Secrets to Protecting Your Money During Inflation
has any questions for me, please feel free to leave them in the comment section below!

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    Giovana Vega

    Best Seller Author, Award Winner, Trader & Investor Blogger

    I’m Giovana currently living in Amsterdam, I used to work in big corporate firms in the finance sector. I quit my job after working more than a decade and started the path as a trader, investor and blogger. End  your search now and grow your financial knowledge with my book “Trading for Success: 8 secrets why women are better forex traders”. If there is an opportunity and adventure, count me in. 

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