Surging Global Inflation – How Best to Protect Your Wealth. After an extended period of low inflation – most Millennials have never experienced high inflation in their lives.
It is natural to be worried about your assets and your wealth when there are concerns about inflation, no matter where you are in your working or retirement life. While certain economic trends may encourage the ordinary individual to be more cautious about their spending, it is a different story when you are concerned about the worth of the money you are saving and investing.
So, what are the best ways to safeguard your financial situation? How can you protect – and maybe even boost – your wealth when the prices on everything seem to be rising everywhere? Here are some tips to consider.
Surging Global Inflation – How Best to Protect Your Wealth
Do not Panic
The first step is to remain calm. Inflation does not have a negative impact on all assets. The next step is to consult with your financial and retirement advisors to ensure that your overall strategy includes a plan for reducing the impact of inflation on your investments. If your portfolio is not ready for this risk, it may need to be reassessed and adjusted.
Surging Global Inflation – How Best to Protect Your Wealth
Conduct a Personal Budget Assessment
Examine your personal spending habits to see if there are any areas where you can save money. Refinancing loans, consolidating debts for reduced rates, and paying off debts are all options to consider. Investing in yourself through continuing education to improve your professional marketability can also lead to improved revenue from new ventures or supplemental income.
Surging Global Inflation – How Best to Protect Your Wealth
Try to Increase Your Income in New Ways
Most of us already work extremely hard, and the thought of taking on a second job is neither pleasant nor in many cases even possible. One bright spot in the pandemic for some has been working from home, as this has allowed saving money on everything from commuting costs to working clothes and those takeout lunches.
There are other ways you can increase your income without working more hours too.
Consider sharing your unique knowledge with the world (about anything and everything) via a monetized podcast/YouTube channel/ blog. Start selling some of that bread you learned to bake during lockdowns. There are all kinds of ways you can fairly painlessly increase your income if you do a little out-of-the-box thinking.
Surging Global Inflation – How Best to Protect Your Wealth
Invest in Hard Assets
When inflation strikes, one secret to surviving is to invest in items that are difficult to reproduce. Consider property and real estate, precious metals like silver and gold, or even one-of-a-kind goods like limited-edition trading cards. Because they cannot be easily replicated, all of these historically perform exceptionally well during periods of high inflation.
Surging Global Inflation – How Best to Protect Your Wealth
Get Some Expert Financial Advice
Even those concerned about inflation should keep in mind that diverse portfolios are more likely to outperform over time. One response to inflation is to ignore it if you can afford to wait it out.
If inflation persists, people who wish to be more proactive should allocate a portion of their portfolios to investments that have performed well during previous inflationary periods. Your financial advisor can be a tremendous help to you in discovering specifically what those are. Do not have one? Even if you are trying to conserve your cash, they are an excellent investment.
High inflation will not last forever, but your need to build wealth will continue for as long as you are alive. If worries about inflation and its effects on your short and long-term wealth have spurred you into thinking more about it, that is a good thing.
Why? Because sometimes it does take a concerning event, or worrisome set of circumstances to spur people into actions that they know they should have really taken years ago. This is especially true of your finances.
Get some professional advice now, to both help you weather the effects on your wealth of rising prices and secure a better long-term financial future. Doing so will almost certainly help you sleep better at night too, which can only be a good thing! Get in contact with one of our professional Independent Investment Advisors today.
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