How to Beat Inflation: 8 Strategies

Inflation in simple word is when more money will need to be paid for goods and service, in other words it is the general increase in price, which causes you to lose your purchasing power over time.

With the COVID -19 pandemic, quiet a few economies around the world have seen prices sharply on the rise. This has posed special challenges for investors and those who want to save money.

“Beating inflation is not an easy task, but it is achievable”

Suggestions on how to beat inflation

Invest in good business with low capital: During inflation period, business ideas with low capital needs that can maintain their earnings are far better than capital intensive investment.

Invest in yourself: Consider upgrading your resume by learning a new skill, purse advance degrees, grow your knowledge base and make yourself an indispensable employee.

Avoid investing in traditional bonds: Bond holders could experience hurt significantly during the period of inflation as interest rates are highly impacted during this period

Clearly separate your needs from your wants: Do not create artificial demands that will drown you in consumer goods. To help with this, consider creating a budget, tracking your expenses through a budget app.

Inflation is kind to real estate: In the long run, real estate is usually an excellent investment response to inflation. You can invest directly in residential or commercial properties, you can also invest in REIT (real estate investment trusts)

Invest in growth-type stocks and funds: Invest in sectors that are likely to benefit from inflation, since they are likely to rise in price with inflation. Examples of such stocks are energy, food, healthcare, technology.

Invest in commodities: Commodities (precious metals) tend to shine during period of inflation. However, you need an understanding of how this works. You might want to talk to a broker about this.

Hold currencies in other currencies: To keep your cash free from inflation, you might want to hold it in a currency that is not as prone to inflation as that of the economy faced with inflation. This can be done by opening a domiciliary account.

Beating inflation is not an easy task, but it is certainly achievable. If you’re concerned about inflation, consider any of the suggestions that have been discussed.

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Before I joined PFM Academy, I was just a classroom teacher and a lover of make-up. Like, if I were taken to a drugstore on a blank cheque, I will go for all the makeup items in that store. Then, one evening I had a 1-1 session with Tolu from PFM (we use to be church members during our childhood) and she asked how I was doing in my profession. I complained on how “Teachers take home, were unable to take them home here in Nigeria” she asked of my passion and encouraged that I could use that to start a ‘side blessing’ that’s what she tagged it. During the lock down I enrolled for a makeup course where I came out second best and boom! I began my side blessing after that. I makeup people for good money and yes, I still buy makeup products but this time, I buy for people and then make my profit. Thank you, Sis.