How To Protect Your Finances From The Inflation Time Bomb

Top tactics to cope with rising prices

How to make money when inflation is rising.


Inflation is coming and it could leave you worse off. Here are some tips to cope with it.


UK inflation is set to rise according to a growing clamour from economic experts and think tanks. A weak post-Brexit pound has the effect of raising the price of key imports such as food and fuel – which is expected to really start to hit spending power in 2017.


This comes at the same time as wages and income growth look set to flatten as economic growth cools.


The result – if we do nothing we could be worse off. So here are five tips to make your money go further and earn more.


Save Your Savings


If you stick your money in most savings accounts these days, the chances are you will actually be losing money in real terms. In other words, the interest rate you get will be lower than the inflation rate and so your money will buy you less.


If you have savings, think about ways they can work harder for you. See the Money Making Champion article on 5 Ways To Earn More From Your Savings.


Get Smart With Your Finances


Here are some No Brainer Tips to help put your finances in order and save and make money.


Boost Your Income


This is where Money Making Champion really comes into its own. We outline hundreds of ways of earning extra cash in your spare time – from home and online.


Consider Investing In Assets


Real assets tend to attract investors at times of inflation.


On this basis the price of commodities such as oil and industrial metals (and shares in the companies that produce them), and investor havens such as gold could keep pace with inflation.


Inflation linked bonds can help you hedge against inflation – although a lot of experts have suggested bond prices are high and could fall if interest rates rise – so it’s definitely worth doing a lot of research before you take the plunge.


A weaker pound has spurred on the value of the FTSE 100 index of leading shares, which make a lot of their money overseas and so their earnings are worth more in pounds.


Experts have also pointed to pharmaceutical, healthcare and infrastructure companies that could ride out inflation concerns.


Property is so popular that a large percentage of the UK see this as their real pension pot rather than savings and investments. Rising stamp duty and Brexit concerns have hit the South East market, which is why a lot of investors are now looking further afield across the UK regions for longer term value.


But there is always a but. Remember the health warning: Investing in assets, whose value can go up and down, comes with obvious risks. You can lose some or all of your capital. So be realistic about what you can afford to lose and your appetite for risk. And be prepared for stock market ups and downs due to nervousness around President Trump’s policies and the slowing UK economy. 


Final reminder: If you do have savings and investments always take advantage of tax free shelters such as ISAs each tax year. And find out what you can earn tax free.




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