RECLAIM Your Financial Security: SECRET Tips Shared by Experts to KILL Inflation
The inflation is 2.53% now. It is a good drop, but the market is still very volatile. So, you can’t put your guard down, not by any means. Indeed, consumers are at the forefront of feeling the biggest pinch with the increased price of daily necessities.
- The food index has increased by 10.4%.
- The energy index also rose by 41.6%.
- Most importantly, the rent increased by almost 1% last month.
There has been a lot of pressure on people’s wallets. Above all, people are trying to save every penny to meet daily expenses. At VoiceOfAction, we try to signpost small actions or behavioral changes that may help you in the long term.
This article on revising your fiscal strategy to tackle inflation is one such initiative.
Inflation will not ease up anytime soon, so we can only focus on what is in our control. Firstly, managing expenses and, secondly, practicing money-saving strategies.
How To Deal With Rising Inflation?
Inflation is a silent budget killer.
It is the reason why your grocery shopping has started to feel heavy. During a good year, inflation can cut back buying power by 2%-3%. But, the same cannot be said for when inflation is at its highest in the last four decades.
The best way to fight inflation is to return back to the basics. You must know where your expenses are and where you can cut short.
Here are a few actions you can take to reduce your expenses and save money.
1. Diversifications to save yourself from Inflation
Some investors have a diverse portfolio. They can tackle inflation better than others. Any traditional stock or bond may be prone to inflation. So, what will you do once your investments get hit?
You can diversify your funds across other mutual funds to keep the incoming returns ticking. Naveen Malwal from Strategic Investors said, “a good mix of stocks and bonds can help investors experience growth while managing risk.”
You can also invest in strategic funds or consult with your investors to seek funds that have performed well in the previous inflation episodes. Often, we can’t afford the high fees that real-time consultancy demands.
Hence, we can follow these SIMPLE means to keep your portfolio meaningful and as REWARDING:
- Spread 20% of your investible funds across the energy sector
- 20% more can go into industrial metals
- 5% into precious metals
- 5% intp agro stocks and
- 15% into international stocks, too.
2. EXPENSES clashing with your Budget???
You might try to offset your expenses by going through your bills, re-organizing them, and cutting the expenses that are not necessary.
Well, that can be the first step to start saving money, but not the last step. When we talk about money-saving tips and strategies, it encapsulates every effort to save money everywhere.
We often shop around to get the price of our insurance, data pack, and other things. But over time, the price increases, and we don’t continue to shop around.
Here are a few bills that can help you save a couple of hundred bucks every month.
- Phone.
- Internet.
- Car insurance.
- Home insurance.
- Other recurring subscription packages.
Out of all the bills, you can easily save a lot from the phone and internet bills. Why pay for an unlimited data plan when you are not going to use it? There are other lower plans that will suit your needs better.
You can even look for coupons from third-party platforms like Coupon Blender to get discounts on your product purchase and utility bills.
3. Don’t befriend more CASH!!
Do you fear the market? That’s natural. It is pretty volatile now. But that doesn’t mean you will consider cash assets your better alternative. Most investors and financial experts say that cash may be easily undreproductive.
It may flash a stable balance that gives strength and courage to you. But stable cash can also reduce your purchasing power. Take an example. A burger costs $5 now. Imagine that you won’t make any investments with your stable assets six months from now. But you don’t incur any significant expenses either.
Hence, your portfolio doesn’t weaken. But at the same time, it doesn’t get stronger as well. However, that’s merely an apparent deduction. When you go to the burger shop after six months, you’ll find that the same piece costs $6.55 now.
That’s an example for one commodity only. Meanwhile, prices of other products grow the same way. That’s why it is necessary to keep investing. And avoid moving into a stable cash position.
4. Increase Your Income
The unemployment rate has returned back to the prep and mic level; most businesses are having a hard time hiring good people for their organizations. While it may not be the best time to ask for increased pay, there are professions where the employees are in a better position to negotiate their paycheck.
You don’t have to stick with a job that is not giving you enough for your hard work. If possible, look for a job that respects your hard work and pays you to meet your needs. However, if that is not possible, look for different ways to earn some extra outside your job.
For instance, you can declutter your house by selling things that you are not using anymore and taking space in your house. You can start investing your savings to allow your money to earn money.
5. Saving Money Is Easy
Yes, saving money is easy. You just need to keep in mind that you will only allow yourself to pay for necessities. If there is something you don’t need or without it, your life will be the same, don’t buy it. This will not only help you save money, but you will also have access to liquid cash when you need the most.
While we would like to discuss some more, the article has become long enough. If you are interested in carrying on with the discussion, we can carry on in the comment section.
Assets that can boost your ECONOMY, even in INFLATION!!
We understand how essential investments are. However, during inflation, we must be more cautious than ever when choosing assets. I gave a brief layout of dividing your funds among dynamic assets.
Other than that, here are some of the most investible assets:
- Gold
| Expense ratio | 0.4% |
| 5 year return | 10% |
- 60 : 40 :: Stock: Bond
| Expense ratio | 0.2% |
| 5-year return | 6% |
- Real Estate
| Expense ratio | 0.1% |
| 5-year return | 2% |
Be AGGRESSIVE to Beat the Inflation
Inflation brought in complexities that did not exist much ago. So, the one-size-fits-all strategy doesn’t work anymore. Similarly, we need a more robust and thoughtful profile to stay abreast of inflation.
The tactics I mentioned will also vary with time. Maybe within six months or one year. However, you have to be prepared to face abrupt changes in the market and other changes.
That’s why it is essential to keep a diverse portfolio. At the same time, you can follow timeless tactics like the 60:40 ratio and others. Most importantly, don’t use a mundane strategy, and keep your eyes BROAD Open!! The market may be DECEPTIVE !!
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