Here’s How to Inflation-Proof Your Wealth

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Here are some tips on how you can hedge against inflation

There’s no denying it: inflation is wreaking havoc on our finances. The U.S. Bureau of Labor Statistics found that prices were up 9.1% over the past 12 months, the largest increase since 1981. 

The inflation rate has affected every American and our paychecks just don’t go as far as they used to. The money most Americans used to invest and save has gone towards purchasing food, gas, and other necessities.

In the face of rising inflation, do you feel lost? Here are some tips to reduce the sting of inflation on your bank account and even grow your wealth in these trying times.

1. Use A High-Yield Savings Account

Do you have money that just sits there in your savings account? Most savings accounts accrue a measly 0.06% Annual Percentage Yield (APY). Checking accounts receive even less at 0.03%. You could be earning a lot more if you have lots of money in your savings accounts.

We recommend opening a high-yield savings account with Chime. Chime is a legitimate bank that gets you a whopping 1.50% APY on every dollar placed into your account. There’s NO limit on interest earnings, PLUS there are absolutely no fees or minimums.

The best part is, Chime even helps build your credit! To get started, all you’ll need is a Chime Checking Account. It’s free to apply and takes less than two minutes!

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2. Watch Where Your Money Is Going

As things get more expensive, keeping track of where your money is going is important. If you have big purchases like a car or house, it may be wise to defer those purchases until rates decrease.

Creating a budget can help you in your day-to-day spending. Use any leftover money to grow your wealth instead of using it on products that you can be saving on.

Hot Tip: If you’re struggling with rising prices, you’re not alone. Be sure to join our newsletter and follow along for more money saving tips!

3. Don’t Get Comfortable With Cash (Other Than Emergency Funds)

When the cost of living is more expensive, it’s easy to feel stable with cash in the bank. The truth is, the more cash you have on hand, the less it’s worth over time as products and services increase in price. 

Instead, we recommend investing your money in safe bonds and stocks. This can increase your wealth as inflation decreases the value of cash. 

Of course, we do recommend keeping some cash as a safety net for emergencies.

4. Buy Low-Risk Bonds

With the stock market out of sorts, many Americans are scared of investing. But investing in safe bonds and stocks can protect your money against inflation.

We recommend investing in Series I Savings Bonds. These bonds are a low-risk option and earn interest while being protected against inflation. 

Another great option is Treasury Inflation-Protected Securities which are indexed against inflation. That means that if inflation increases, the value of the bond will increase as well.

5. Invest In Precious Metals

Along with bonds, precious metals are one of the safest investments you can make. Gold and other metals have held their value for over 6,000 years, and it’s safe to say that they will not decrease in value over time. 

As cash may decrease in value, gold will adjust with the value of the dollar, so it’s a good investment to make.

Lear Capital Gold is one of the top gold and precious metal investment companies, click here to learn more.

Bottom Line

The silent killer of American wealth is inflation. It decreases the value of our money as prices increase. 

There are ways to decrease the sting of inflation on our wealth, and the five tips provided above should give you a good start at hacking inflation and start building wealth.