Navigating Inflation and Helping Preserve Your Finances


Inflation, which can be described as the steady increase in the prices of goods and services, is a topic that has gained significant attention in recent times. As the cost of living rises, individuals and families must adapt their financial strategies to mitigate the impact of inflation. In this article, we will explore the current state of inflation, understand its implications and provide valuable strategies for safeguarding your hard-earned money.

We first need to understand what inflation is since it is considered a natural part of the economic cycle. Unfortunately, when it accelerates, it can erode your money’s purchasing power. There are many different measurements for calculating inflation, but it is simply the increase in the cost of goods or services from one period to the next, usually from one year to the next. Over the past 18 months, we have witnessed rising inflation rates due to various factors such as increased consumer demand, supply chain disruptions and government stimulus packages. It is essential to recognize the impact of inflation on your finances and take proactive steps to help preserve your wealth.

During periods of inflation, it becomes crucial to evaluate your expenses and make necessary adjustments to your budget. Take a closer look at your discretionary spending and identify areas where you can cut back without sacrificing your quality of life. Additionally, consider renegotiating contracts or seeking alternative suppliers for essential services to find cost savings. While inflation erodes the value of money, it can also work to your advantage if you have fixed-rate debt such as a mortgage or a personal loan. As prices rise, the value of your debt decreases in real terms. Focus on paying down high-interest debt while taking advantage of historically low interest rates. However, exercise caution with variable-rate debt as it can be affected by rising interest rates.

Inflation can have a detrimental effect on the value of traditional savings accounts. To counteract this, explore investment options that have historically performed well during inflationary periods. Diversify your portfolio to include assets such as stocks, real estate, commodities and inflation-protected securities like Treasury Inflation-Protected Securities (TIPS). These investments have the potential to outpace inflation and preserve your wealth over the long term. Even looking at money market accounts that have not been paying much interest over the past 20 years and are suddenly paying much higher interest. Inflation poses a significant threat to retirement savings. When estimating your retirement needs, consider the potential impact of inflation on your expenses over time. Explore retirement investment options that have the potential to outpace inflation and provide a hedge against rising costs. Consult with a financial advisor to develop a personalized retirement plan that accounts for inflation and helps ensure your financial confidence in your golden years.

Inflationary periods often bring about changes in the job market. To help preserve your income, consider investing in your skills and education. Enhancing your qualifications and staying current with industry trends can increase your earning potential and make you more resilient in a changing economic landscape. Inflation is an economic force that requires careful consideration and proactive measures to help preserve our finances. By understanding the current state of inflation, reviewing your expenses, diversifying investments, managing debt strategically, investing in yourself and planning for retirement, you can navigate the inflation wave and safeguard your wealth. Stay informed, adapt your financial strategies, and work toward a stable future amidst a changing economic landscape.


The Accredited Investment Fiduciary (AIF®) Designation demonstrates the individual has met educational standards to carry out a fiduciary standard of care and acting in a client’s best interest. All investments are subject to risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

Registered representatives offer securities through AE Financial Services, LLC (AEFS), member FINRA/SIPC. Investment advisory services offered through OLV Investment Group, a Registered Investment Adviser. OLV Investment Group is independent of AEFS.


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