Most of us are noticing the rising prices and increased living costs. Some of us more than others but on general we are getting hit by this all together. In this article I want to talk about potential steps in order to try and mitigate the results of inflation.
Measure Your Own Inflation
Let’s start off with probably the easiest step here: Measure your own Inflation. Every person is being affected by this situation differently. We all have different habits, different life styles and value different things more than others. For example: Some people value cars more, others like to go out and third ones like to play video games at home. All of these different kind of people will get affected by the current situation very differently.
This is why the first step should always be to consider your own situation. This is best done with some records. You can try and use your credit or debit card sheets in order to calculate your personal inflation and check how much you are affected by the current situation. This is also how you could check very easy whether the numbers that the official people are giving out are “manipulated” or not.
Source Of Inflation
Next up we need to determine the source of the inflation. It is always smart to cut the stuff off that takes the biggest portion. If something did not raise in price it almost does not make sense to stop buying it as it was not affected by inflation. On the other hand, if your premium coffee has gotten exponentially more expensive it would be a goo start to switch to a cheaper alternative. By deleting the biggest influences and replacing them with cheaper alternatives, we can bring our inflation level down to an area that could be very similar as before the whole inflation.
Cut Costs & Increase Income
Now that we figured out what actually costs us, we need to cut it off and try to increase our income! Of course it is easier done than said but it just the acknowledgment that we need to do something in this direction will help us to get better results in the current situation. For example, it always makes sense to buy more things in stock rather than buying it every week. Stuff like soap or toilet paper are not going bad and can be bought in big warehouses for much cheaper than in the normal Walmart. Furthermore, it would be clever to unsubscribe all of the streaming services that you are not using on a day-to-day basis. I recently noticed that Netflix and others have raised their prices incrementally and I don’t really see the point paying this much money for stuff that I am hardly using anymore.
It could also makes sense to create a carpool in order to safe gas or even try to take public transport if it is available in your area. The first suggestion even ties in with the increasing income part! We can create carpool offers, where the passengers just pay for our fuel or even give us money to just drive with us to the spot we are driving to anyways.
Furthermore, there are a lot of side hustles out there that allow you to earn an extra buck. Different apps can help you find different side hustles, we just need to find the correct one! In some cases you could even take a part time job in your local supermarket. In some cases these facilities are offering their workers some kind of a discount on the purchases which would also bring down your costs for food.
Consider Investments
Last but not least we need to talk about investments. In general, we need to pick investments that are less affected by inflation and this is very hard in these days. While many are saying that commodities such as oil would be a great investment, they are not really good if the dollar value is going up as well. Not only that but there is a possibility that you actually need to store this commodity somewhere and if you just bought 50 barrels of oil, this would be very difficult for the everyday investor.
One of the best way right now is just to invest in Us Dollars or USD stable coins that can pay you a good return if you store them. Decentralized protocols as well as centralized exchanges are often offer up to 10% APY if you stake your stable coins with them. This obviously brings the risk of not being to access your funds anymore but if anyone is willing to take this risk, it could be a very nice alternative.
Furthermore, there is always the gossip about Bitcoin being a great inflation hedge. I would not say that it is completely true, at least in the short term. We all saw how the value of BTC plummeted over the course of just a few weeks. As long as the crypto space is not regulated, this will keep happening. On the other side, I think that long term, this asset will be beating the current inflation rate. Somewhere in the future we could see a great price jump and it will benefit everyone that has sticked with BTC for a long time.
Conclusion
While this situation seems to become worse week in week out, we need to see this as a chance. For me, I am trying to follow the above steps as good as possible. I am sure that they will help me navigate through the next few months and come out on top of the current inflation numbers. I am also very open to any suggestions and improvements to my strategy! I would love to hear about your investments specifically as I think there are a lot more things to invest int that I have not considered yet. With that being said, I wish you’all a great weekend! 😊
Published by ga38jem on
LeoFinance
On 6th August 2022
Posted Using LeoFinance Beta
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It's true. Everyone has a different rate of inflation