How to beat inflation?

[Riberet19]

Beating inflation is a complex challenge, if it were easy, we would all do it and gain more purchasing power than the inflation of our currency in question makes us lose, but there are some tips that can be given to try to beat inflation or alleviate it a little.

Improving the productivity of your work, this may be simple to say, but it is not since you will have to either work more or be more efficient in what you do, but it is undoubtedly not impossible, improving productivity will bring you more income which will make it possible to beat inflation.

Investing in stocks of large companies, can be another way to earn solid annual returns to beat inflation, this must be accompanied by a good analysis to try to get the right investments to be made.

Invest in index funds, this is another great way to invest and try to beat inflation, as most of these funds offer returns that can earn at the inflation rate, it is also a good way to save for the long term.

Investing in foreign currencies, If you live in a country where inflation exceeds double digits or more, perhaps this is one of the easiest ways to beat inflation in your country, buying dollars, euros, British pounds, or Swiss francs if you have the possibility to do so is a good option.

Investing in Bitcoin, although Bitcoin is a relatively new and highly volatile asset, in the long term it has proven to be a great ally against inflation, beating it in all its cycles, given that Bitcoin is a cryptocurrency with only 21 million total coins, making it scarce, and every 4 years its minting rate decreases.

To know what is most convenient for you, you should see what the inflation rate of your local currency is and see what your possible options are, there is always something to do to beat inflation, the only thing that does not beat it is to do nothing.

 

[Nomad]

When there is inflation, value of your money decreases, you might be earning the same amount of money but your money would not be able to buy the same thing. Therefore, the only way to cope up with inflation is to make more money and reduce expeneses.

 

[Riberet19]

When there is inflation, value of your money decreases, you might be earning the same amount of money but your money would not be able to buy the same thing. Therefore, the only way to cope up with inflation is to make more money and reduce expeneses.

Apart from making more money (in your currency which is being devalued) you can choose to change your money to a less inflationary currency, for example if you have rupees, for example, you could look for the option of getting euros, dollars or even buy Bitcoin, that could be an alternative.

 

[Nomad]

Inflation is not just related to your country's economy, it is also related to world economy. Your fiat currency value is always determined by the world reserve currency like USD. One of the easiest ways to beat inflation is buying gold. Gold does not easily lose value just like fiat currency or even bitcoin

 

[Riberet19]

Inflation is not just related to your country's economy, it is also related to world economy. Your fiat currency value is always determined by the world reserve currency like USD. One of the easiest ways to beat inflation is buying gold. Gold does not easily lose value just like fiat currency or even bitcoin

Yes, you are right about that, apart from that inflation is highly correlated with oil, since all the goods in the world are transported thanks to this liquid, and the USD and all currencies are also directly correlated to what oil does, Inflation is something difficult since it not only derives from the currency, but it is always better to take refuge in a currency that is less inflationary than the one you use on a daily basis, which is why so many Argentines buy dollars or USDT because the Argentine peso has an inflation rate of 3 figures, that's what I was referring to, while the inflation of the dollar is much lower.

 

[Nomad]

That's very true. Since we need energy to do most of the things, energy prices also determines the economy. Sadly, the entire energy sources are controlled by rouge states like Russia and Venezuela and tyrant Arab nations.

 

[Riberet19]

That's very true. Since we need energy to do most of the things, energy prices also determines the economy. Sadly, the entire energy sources are controlled by rouge states like Russia and Venezuela and tyrant Arab nations.

Well, energy is a fundamental pillar of the economies you have mentioned, that is why they have it monopolized and play with the price of energy, it is a power that they have to destabilize other nations that do not have such energy production, as is the case of Europe which is highly dependent on Russian energy.