There’s no doubt about it, inflation is here in a big way. So how can you put your money to work to stay ahead of it? The good news is there are some things you can do to protect and possibly grow your money in an inflationary economy. We cover some of these suggestions below for those who are looking to make the best use of their money during this time of high inflation.
Inflation can be a challenge for everyone, especially those with little to no exposure in the stock market or a lot of extra cash sitting around.
Taking steps to lessen the impacts of inflation on your finances is key, whether it’s through investing or cutting costs.
The ultra-rich know that diversification across several different asset classes that outperform the market during inflationary times is key. These could include alternative investments like real estate, peer-to-peer lending, and more.
Play It Safe While Still Growing Your Savings and Get a Bonus From Amazon
While many experts will tell you to invest your cash or use it to pay down high-interest debt during times of rising inflation, not everyone is comfortable doing that for many good reasons. If playing it safe gives you peace of mind, there are still many conservative options out there that will allow your money to grow. One of the best is a money market account. Money market accounts generally have higher interest rates than standard savings accounts while still keeping your money safe.
A great example is the CIT Bank Money Market Account. It has a 0.55% APY that’s well above the national average. There are no monthly service fees and you only need a $100 deposit to open your account. For a limited time, CIT Bank will also give you a one-year Amazon Prime membership when you open a Money Market Account with qualifying conditions.
Save Thousands on Your Mortgage Before It’s Too Late
As the inflation rate climbs, interest rates are likely to climb as well. If you haven’t already, you may want to consider moving sooner than later to refinance your mortgage as mortgage experts do expect rates to continue rising in 2022. One way to see if refinancing can save you money is to use a service like Lendgo. Lendgo is an easy-to-use platform that allows you to compare rates from a robust network of lenders with nationwide coverage all in one place. You can get quotes in as little as two minutes from multiple lenders.
Refinancing to a lower rate can save hundreds or even thousands each year in mortgage payments. Comparing quotes through Lendgo is free and easy.
Access High Returns Through Dividend Payments and Property Appreciation
Owning real estate investment property has traditionally been expensive and a lot of work, making it inaccessible to most of us. Thanks to the emergence of crowdfunding, anyone over 18 with a U.S. bank account can now invest in institutional-quality real estate with as little as $10. That’s right – Fundrise is changing the way people invest by allowing you to diversify outside of traditional markets with income-producing private real estate which is great for diversification and reducing risk.
Fundrise achieved average returns of 22.99% across all client accounts in 2021 through dividends and appreciation1. It’s super easy to get started and takes only a few minutes. Once you sign up, you can quickly connect your bank account and start investing immediately.
Factor Inflation into Your Retirement Plans
As the economy shifts from inflation and other causes, it’s crucial to keep up with your retirement progress. Afterall, you want to make sure you don’t outlive your savings, don’t you? If you don’t have a trusted financial advisor, it can be hard knowing how these economic changes are impacting your plan.
A financial advisor can run multiple possible scenarios with your financial plans to see how prepared for retirement you truly are. They can also offer suggestions on how to strengthen your finances under any circumstance, giving you confidence in your financial future.
With WiserAdvisor, you can get matched with a licensed financial advisor experienced with your specific needs. Not only is the matching service free, but your initial consultation with the financial advisor is also free and there is no obligation to hire.
Pay Down High-Interest Credit Card Debt
Many credit cards have variable interest rates, meaning when the Feds raise the federal funds rate, your interest rates on your credit cards are likely to rise with it. The Feds have already started raising rates with more likely coming later this year, so now is the time to act.
If you’re struggling with high-interest credit card debt, one option is to transfer it to a 0% balance transfer card. The (Rates & Fees) currently has a 0% intro APR for up to 21 months from account opening on purchases and qualifying balance transfers. After the intro period, a will apply. You’ll be hard pressed to find a better intro offer AND the card has no annual fee. You will need good or excellent credit to qualify. By transferring your high-interest credit card balances to you can take control of your finances so your debt doesn’t keep piling up with no clear end in sight.
Invest In an Expertly Curated Diversified Portfolio in Minutes
Inflation can be a sign of economic instability, so it’s a great time to diversify your investments to reduce your risk. If you’re unsure where to start, consider a portfolio built by experts with diversification in mind. With M1 Finance, diversification is a breeze. They offer over 60 curated portfolios, or Pies, for a variety of investing styles or goals. You can choose an Expert Pie for instant diversification or build one yourself based on your individual preferences. M1 offers automated, commission-free investing based on goals you set. They also offer fractional shares so you can be invested in big name brands like Amazon, Apple, Tesla, and more in just a few minutes. When you sign up, you can get a bonus of up to $250 if you deposit $5,000 or more.
Start Investing In the Future of Money for $5
If you’re looking to dip your toe into the world of cryptocurrency, take a look at Gemini. It has been voted the #1 cryptocurrency exchange multiple times and has led the charge in security and compliance in the industry. It’s free to sign up and you can get started investing with as little as $5. Gemini makes it simple to research the crypto market and buy, sell and earn interest in over 45 cryptos including bitcoin, ether and dogecoin. It even has its own currency, the Gemini dollar (GUSD), a 1:1 USD-backed stablecoin issued by Gemini where customers can redeem a GUSD for $1 anytime. Plus, you can minimize price volatility and outpace current inflation rates by depositing your GUSD into Gemini Earn and earning 8.05% APY*.
1 “Total return” consists of the time-weighted, weighted-average aggregate returns of Fundrise Advisors client accounts that have participated in the indicated investment plan objective during the calendar year 2021, calculated using the Modified Dietz method. Total returns are inclusive of dividends and capital gains / losses, are net of fees, and include shares which were acquired via dividend reinvestment.
*Terms apply : https://www.personalcapital.com/content/offer-terms-and-conditions/six-months-free/
*Depending on availability. Gemini Earn is a lending program through which you may choose to lend your cryptocurrency to certain institutional borrowers. Gemini, as your custodian and agent, will offer you lending opportunities when and if available. While we expect sufficient borrower capacity for all interested Gemini customers, we cannot guarantee demand for particular cryptocurrencies or at particular rates.