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The Best Ways to Protect Your Money from Inflation
Last week, the Fed’s latest announcement announced that at least two rate hikes will occur by 2023, worrying many Americans about rising inflation.
In the meantime, the Fed’s hope that holding interest rates low will help companies create jobs, and get more Americans back to work.
Even so, since most states are easing restrictions again, the rise in spending into the economy will push prices higher.
In addition to affecting your cost of living, you might also have an increase in net borrowing and possibly reduce your investment returns.
Even though there is still no way to know what the future holds, extra caution certainly won’t hurt, especially now that the economy is uncertain.
Rethink that Emergency Fund
Inflation will always eat into any cash you have, so it might be wise to put it into a high yield savings account to protect the purchasing power of your funds.
High-yield savings accounts pay you a higher interest rate than traditional savings accounts, so you can essentially make money by just holding your funds within an account.
When prices are climbing, any money that you can put towards that extra funds can help you combat the effects of inflation.