Worried about inflation? Here's how to fight it.
With inflation on the rise over the last year, the prices we pay for essentials of every day living are increasingly. So what should you do?
Worried About Inflation? Here’s How To Fight It
By: Scott Sturgeon, JD, MBA, CFP®
Would you like to receive more content just like this directly to your inbox? Click here to subscribe!
Inflation has been a hot topic the past few months. For a lot of us, inflation isn’t something we generally really think about because it’s kind of a ‘hidden’ cost. If the price of a 50 cent apple goes up 3%, you’re probably not going to notice the extra 1.5 cent cost and it’s probably not going to stop you from buying it.
That’s really the way it’s been over the last decade. Inflation rates have hovered around 2% each year on average since the great recession. That’s suddenly changed very quickly with a recent report from the Labor Department indicating that consumer prices increased 7.5% from a year earlier. Suddenly the prices of everyday goods and services are increasing noticeably, likely impacting your wallet or checking balance in ways you haven’t seen in quite some time.
For the average household in the US, that 7.5% annual increase in inflation comes out to about $276 more spent per month living under the same standard they would have been a year earlier. You’ve likely experienced this marked increase in prices at the grocery store, getting gas, and in pretty much any other area where you’re needing to spend money to live your life.
In addition to impacting spending, inflation may also affects the way that you save money as well. For example, if you maintained a constant balance in your savings account over the last year, the effective purchasing power of those dollars actually went down, even though your bank statement amount stayed the same. The question of what to do with excess cash is something that many are grappling with right now in the face of inflation not seen for quite some time.
So what exactly is inflation? How long with this period of relatively higher inflation last? What should you be doing in response? The answers to those questions is going to vary greatly based on your individual financial objectives and what your priorities may be in both the near and long term. Check out the video linked here for more information on how you can take action against inflation!
Oread Wealth Partners, LLC (“Oread Wealth Partners”) is a registered investment adviser offering advisory services in the State of Kansas and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training. The presence of this website on the Internet shall not be directly or indirectly interpreted as a solicitation of investment advisory services to persons of another jurisdiction unless otherwise permitted by statute. Follow-up or individualized responses to consumers in a particular state by Oread Wealth Partners in the rendering of personalized investment advice for compensation shall not be made without our first complying with jurisdiction requirements or pursuant an applicable state exemption.
All written content on this site is for information purposes only. Opinions expressed herein are solely those of Oread Wealth Partners, unless otherwise specifically cited. Material presented is believed to be from reliable sources and no representations are made by our firm as to another parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation.
Past performance may not be indicative of future results. Investing in securities involves risks, including the potential for loss of principal. There is no guarantee that any investment plan or strategy will be successful or that investments and markets will perform as they have in the past.
