Blog Post
High inflation requires you to make smarter investment choices
The pandemic was the hallmark of a period of inflation that it is difficult to predict how high it will climb and how long it will last. As a result, we end up paying more for the same (or sometimes even worst) quality products and services, making it clear that if there is a right time to start with intelligent savings and investments, this is the one.
You need to clearly understand where your money is going, so you can easily individuate the superfluous expenses. A good example is fees and subscriptions like extra cloud space, internet and mobile service providers, software, apps, etc. Ask yourself how essential they are for you. If they aren't, don't overthink it and get rid of them. But if they are, verify if cheaper options are available before sticking to your current choice. The same applies to other recurring expenses, like groceries. During this period, you have the chance to finally try something different from your usual grocery shopping and dietary habits. Instead of opting for branded products, look for generic goods that provide similar quality for a better price. Also, consider more home-cooked alternatives rather than ready meals, watch out for discounts, and buy items in bulk if possible. Other recurring expenses you could reduce are your car insurance and, depending on where you are, water and electricity.
As already anticipated, smart investing is essential during these times. Although it might sound contradictory, because prices are rising, you should remember that investing is a way to maintain and grow your savings' purchasing power over the long term. If you are in the U.S., here is a list of investments you should explore further.
Instead of viewing this as a moment of sacrifice, try to approach it with a more positive attitude, taking it as a time of exploration and renewal. Step out of your comfort zone and explore a different way of living and alternatives - you might be surprised at how many interesting options you've missed out on!
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