The last data of inflation in the US has not been encouraging at all, reaching a 6.8% in November. Being the highest rate in the last 30 years. With these 6 tips we can face this problem, according to Clayton Jarvis en Yahoo Finance.
When prices began to accelerate earlier this year, some experts, including the “Oracle of Omaha,” raised the alarm.
“We are seeing substantial inflation,” he said. Warren Buffett to those attending the annual meeting of shareholders of your company Berkshire Hathaway in May. “We are raising prices. People are raising prices to us and it is being accepted.”
Let’s see what these 6 tips are.
1. Increase your purchasing power
When inflation shoots up, you can think in two basic ways. One is that prices are increasing, another is that the dollar is losing value. Any way you look at it, earn more money it’s a pretty safe solution.
If you are unemployed or one of the millions of people who leave their jobs in the Great Renunciationconsider using any additional downtime you have to develop your skill set and position yourself for a higher salary. Or also to perform it independently.
2. Invest in the stock market
Historically, stocks have outperformed inflation to a significant degree, making them one of the strongest hedges against high prices.
You can use inflation to your advantage by investing in sectors of the economy who can benefit from price increase, including food, technology, building materials and energy.
3. Invest in precious metals
Inflation fears often draw attention to hard assets such as gold and silver. Both raw materials performed well over the past five years, with the gold value increasing by 52% during that period, and the the payment increasing by about a 49%.
You can have precious metals directly by buying coins or bars, or invest in exchange-traded funds, or ETF, that include commodities in their holdings but are traded as shares.
4. Take advantage of the scorching housing market
The real estate It has proven to be one of the most reliable long-term investments you can make. The US housing market. it has had a significant upward trajectory in recent years.
If you are ready to buy your first home, or you already own a home and want to change itCompare mortgage offers to find the best rate. The mortgage rates they still are historically low: the average home loan to 30 years recently fell below the 3% again.
The lowest mortgage rates tend to go to borrowers with the highest credit scoresSo do what you can to increase your credit score a few notches.
5. Beware of Adjustable Rate Loans
When inflation heats up, interest rates often go up. If you have a adjustable rate debtLike a credit card balance or a home equity line of credit, an increase in inflation will result in higher interest charges.
That is especially true for mortgages. If you have an adjustable rate mortgage, you may want to talk to your lender about refinancing and opting for a fixed rate.
That will ensure that you will pay the same interest rate until you decide to sell your home or refinance again at an even lower rate.
6. Stay the course
Not everyone believes that the recent spike in inflation is a sign of long-term trouble. Warren Buffett has noted that Americans still have money to spend.
“People have money in their pockets and pay higher prices,” he told Berkshire Hathaway devotees in May.
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