How do you save money from inflation?
Date of publication: 31.05.2024
Time to read: 3 minutes
Date: 31.05.2024
Read: 3 minutes
Views: 287

How do you save money from inflation?

In the world of today, a substance such as currency shows great instability due to macroeconomic circumstances. The world's leading economy, the US, is trying to normalize the micro-economy, but the consequences of the problems are affecting the whole world.

Preserving funds in challenging times is just as important as increasing them. The macroeconomy has shown many times that it is not immune to negative world events and has given us more than one “black swan”. 

At the same time, there are ways to protect your funds from inflation and unplanned economic fiascoes. These approaches may not be the solution to building up “wealth”, but they will certainly help to ensure its safety.

Let's look at ways to protect your funds from unforeseen circumstances:

1. Investing in stocks. Investing in shares of reliable companies, stocks or funds that maintain an uptrend over distance can provide returns that outpace inflation.

2- Investing in real estate. Real estate has traditionally been considered a good hedge against inflation because its prices tend to rise with the general price level.

3. Investing in precious metals. Gold, silver, and other precious metals are often considered a safe haven in times of high inflation because their prices tend to rise with inflation.

4. Investing in cryptocurrencies. Some cryptocurrencies, such as Bitcoin, are seen as an asset that can protect against inflation because their supply is limited.

5. Currency diversification. Allocating funds between different currencies can protect against the depreciation of any one currency.

6. Investing in securities: e.g. ETFs, index funds or other types of securities can help you preserve and grow your capital in the face of inflation.

Among all the above mentioned protection methods, bitcoin investments are the most optimal and affordable solution. The leading cryptocurrency enjoys the trust of both retail and institutional investors, as evidenced by the emergence of ETF products related to it. In addition, the limited issuance of this crypto-giant gives it added value.

One should not forget that there is always and everywhere a risk, and even under the most favorable conditions, it is possible to lose everything. But thanks to the above-mentioned ways of preserving your capital, the chance of your financial portfolio being devastated is much less than if the funds are simply stored in fiat in a bank account or in cash in a safe deposit box.