What Inflation Means for You

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Indexes
  1. Increase your income
  2. Earn more income
  3. Remain invested in the markets
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It’s going to suck — simple as that.

For 99% of people, there isn’t much you can do to help battle rising prices. It’s going to be the reality for a year or two (hopefully no longer). This means you’ll see increases at the pump and in the store.

That means you are going to see interest rates increase on both deposit accounts and borrowing. Your 3% mortgage dreams are gone, and the cost of owning a home is only going to increase throughout the year.

Purchasing a new car got more expensive as well.

But that doesn’t mean it’s all bad, rather you might have to sit tight and adjust your finances a bit. Maybe postpone large purchases or simply go about it at a slower pace.

You can combat inflationary pressures though by doing the following.

Increase your income

This can be a perfect time to ask for that raise at work. Along with fair market price, you can bring home the argument that wage increase is necessary to keep pace with inflation.

It’s no promise, but it’s something your manager should understand.

Prepare by bringing statistics about the labor market. Make sure they understand the situation and have support for any claim you make.

Earn more income

Next would be to earn more money. It certainly doesn’t help with pricing, but it can give you the wiggle room necessary to better position your financial status.

With Uber and flipping items online, you can make money a hundred different ways. If you’re an art person, sell your handmade crafts on Etsy.

Earning more can go along with the notion of building a second skill. It’s important to have a plan B, C, D, etc.

Remain invested in the markets

Lastly, remain invested in the markets no matter the situation. People let fear get the best of them and start pulling out their money — wrong move.

Know that this is a small, tiny blip on the radar. Take a look at the market as a whole, from start to finish. Then you’ll truly understand.

Not to mention that markets tend to bounce back somewhat quickly. Look at 2008 for the latest example.

Keep going about your investment plan as normal. You’ll continue building wealth, which helps keep inflationary impacts on your life at bay.

At the end of the day, inflation sucks. It’s a product of the current economic system we built. Unfortunately, it ain’t going anywhere and the best we can do it protect ourselves.

Best thing to do, keep on keeping on, and adjust where necessary.

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