How to Deal with Inflation and Protect Your Savings?

[Suba]

If the interest rate on your savings is lower than the inflation rate, the value of your money will decrease. Furthermore, inflation also has other negative impacts. Therefore, we need strategies/methods to deal with inflation and our savings, as follows:
1. Diversify or spread your investments across various instruments.
2. If you like investing in bonds, choose inflation-linked bonds.
3. If you want to invest in blue-chip stocks, choose issuers operating in the consumer staples, healthcare, and energy sectors.
4. If your local currency is vulnerable to inflation, choose savings in stable currencies such as USD, Euro, Yen, or stablecoins.
5. Choose blue-chip crypto as a hedge.

Do you have any other thoughts or share your comments?

 

[Kross]

When inflation is ravaging the economy, I make sure that I only save in dollars to stay above the inflation wrecking my savings.

 

[Starmix]

I invested in stocks, crypto, mutual funds, and a farm. A farmer approached me wanting me to invest in his 10 hectares of irrigated rice fields. I trust the farmer, cousin of my brother-in-law. The harvesting and selling time will be February 2026.

 

[Springtime]

Do not let your money to sit in the savings account. The interest rate is much lower than the inflation rate. Make investments or exchange your local currency to foreign currencies which are relatively stable and offer higher interest rate.

 

[Tobi]

Money sitting around at no risk is dead money. It is not being used to increase the value of something, therefore it should earn nothing.

The only way to get a better return is to put that money at some risk.

One can make a very strong argument that the lowest long-term risk is the stock market. Over the long run there has always been a positive bias in the value of stocks. The long-term average return of the stock market for the last 90 years has been close to 10%.

 

[Augusta]

Identify expenses that can be trimmed by tracking your spending.Focus on paying down variable rate loans.