Herconomy Inflation Series

Here are Some Amazing Tips on How to Hedge Against Inflation!

Over the week, we have witnessed a fluctuation in the exchange rate, and even though prices have stabilized, a lot of people have been shaken at the prospect of rapidly spiking inflation.

At this rate, we might all need survival hacks on how to get through this inflation.

There are ways to counter inflation successfully even when higher income is not a guarantee.

Here are some tips for tackling inflation as prices continue to rise

Negotiate lower prices on everyday expenses:

To prevent paying higher prices, you can negotiate a much better deal on almost anything. According to Andres Lares, managing partner at Shapiro Negotiations Institute in Baltimore.

Start by building a relationship, then ask if there are any discounts you qualify for, Lares advised. “There is no harm in asking.” Streaming services, insurance premiums, DStv, internet services, and gym memberships are classic examples of recurring costs that are often negotiable. Before you pay for your next subscription, take a few minutes to call and ask if you are eligible for discounts, you never know. You can also ask friends and colleagues on finding the cheapest and most quality service providers. Studies show that consumers who request a lower rate are almost always successful, this can be a great tool for reducing monthly expenses

Cut down on high price tags:

Not everything will always be expensive. Some price increments could be temporary. In that case, it could be beneficial to delay that purchase. Wait it out until it’s possibly cheaper in the future. If you must buy something that suddenly costs more, that’s a more difficult situation. This is an example of when an emergency fund and savings can come in.

Spread out your investments:

To maintain your purchasing power in the long run, determine the right assets for your investments. Consider your income, expenses, risk tolerance, and time horizon.

If inflation is above what you are earning in Treasuries, this means that part of your portfolio is losing buying power but other options make up for it. For example, consider a mix of commodities, treasury inflation-protected securities, and equities to offer some security.

“Over very long periods, a properly diversified portfolio which includes equities, real estate, and TIPs can provide the needed return to combat inflation,” said Dan Keady, chief financial planning strategist at TIAA. “Stay with diversification and rebalance back to your target portfolio at least yearly rather than trying to time short-term movements,” he advised.

Were these tips helpful? Then look out for another article next week, for more tips on how to hedge against inflation.

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