Topic: How has inflation affected your savings and investing? - page 2. (Read 599 times)
Many factors affect our income and expenses, and the biggest factor influencing is inflation. If inflation is not under control then we can be sure that we will experience many financial problems, the presence of investment is certainly to be able to offset inflation so that we can survive and increase our assets.
Inflation is very influential on the economy, I work with a salary of around $450 per month and have almost 3 years of salary increases below inflation so it makes a lot of things that I can't fulfill, to save is very difficult and I only rely on a few unproductive investments so my hope is right now is investing in cryptocurrencies.
That is the case with most of the countries, even in developed nations. The salary increase is in the 4%-5% range for most of the people and it may be below the inflation rate. If you are in the top 10% in performance, then you may end up with 10%-12% increment per year. In order to improve your living standards, you need to change your job once every 3-4 years. The new job on average may pay you 25% to 30% more (I am talking about employees with >5 years of experience, and not about the starting level employees).
Well for me, since I quite earn enough to make a living. I make sure that I don't touch whatsoever that I currently have invested, and my savings are still the same. I set my own budgeting in which I follow a rule 60-20-20, 60 % will go directly to my Expenses (Bills, Groceries, and etc.) 20% savings and 20% Investments/Wants. I may sometimes have a 10-10 split on my investments and when I sometimes want to buy somethings and etc. So yeah, my key to this somehow crisis is that I make sure that every penny is accounted for. I avoided, impulsive buying or spending too much on going out. I'm an extrovert guy, but I'd always set myself to spend this only for a certain let's say gatherings. It's not that I'm cheap, more on I want money to grow. I have plans, this is somehow a sacrifice for others but yeah I know this would benefit not only me but also my family.
Inflation is very influential on the economy, I work with a salary of around $450 per month and have almost 3 years of salary increases below inflation so it makes a lot of things that I can't fulfill, to save is very difficult and I only rely on a few unproductive investments so my hope is right now is investing in cryptocurrencies.
I have noticed as well and this has been going on since the last world economic crisis that happened in 2007, I know it sounds like a cliche but things are not made in the same way they were made before, now all the stuff you can buy is some cheap junk that breaks at the first opportunity, while stuff that was made decades ago is still working because those products were made to last and even if you abuse the product you can always restore it and it works as if it was new, something really difficult to do with the technology that is being produced today.
Well.. this is strange. But you can't generalize everything. I am using my laptop from Dell for the last 6 years, and so far I haven't faced any issues. The same can be said about refrigerators, washing machines.etc. In fact the refrigerator which I am using is at least 10 years old. But if you are talking about mobile phones, TVs.etc, then I have to agree. The LED TVs don't last for more than 4-5 years. On the other hand, the old CRT televisions used to last 20-25 years without any major issue. But then you need to chose between quality and durability.
...also something that companies do all the time is that instead of raising their prices as they know people do not like this is that they lower the quality of the product itself or they give you less of it.
True, I noticed that the quality of products these days have been affected, and that all those nutritional information on the packaging of products, now more than ever are not 100% true, some are just written in adequate percentages for show, in reality these companies have reduced the quantity of these nutrients they use because they are being affected by inflation and have to meet up. To show that companies have really been affected to agree to your comment, i have also noticed not just a reduction in quality, but also in the quantity of products.
To be honest, you can't feel much the effects of inflation until it's obvious, I don't have any fiat savings so I don't feel it that much, my investments on the other hand aren't affected instead they're making me safe against inflation.
True, you will not feel it until a few years have passed and I have been hearing statements like inflation increasing every now and then, in reality it is, but the buzz created to make it seem like a problem seems to be more. On an average, in the last few years prices of things that are in daily need have increased but people cant have any alternative to take except pay for them.Fiat based investments will face the wrath of inflation too. That does not mean that bitcoin is beyond that, you end up having to convert bitcoin to fiat if the former is not yet accepted in your country.
Cutting down expenses is a good thing - not just for the pandemic but in general. Some spending is necessary to survive, other than that, you should spend money that goes with the amount you are earning - balancing that is the key.
However I would not say that rise in prices would make me reconsider my investments. Those are based on different other logical explanations. Neither does that mean that one should convert everything to crypto because that is a stupid thing to do (all eggs in one basket) and also what I said above about conversion.
Inflation is really kicking in, the cost of things are getting really high in the market and its not even december yet, its effects are evident on the price of food stuffs, transportation, electricity bills, gas bills and others. How are you handling it and how has it affected your savings/your percentage for investing (if you have one)?
Have you had to cut down on your expenses so as to maintain the percentage of your income you allocate to savings & investing?, Or you have adjusted the percentage for savings and investing so as to accommodate and maintain your standard of living?
I witnessed the 2008 economic crisis, it was really a nightmare for the global economy. Inflation is so high that the prices of everyday items are skyrocketing, it really has a lot of serious consequences, but from a more positive perspective I think it's just a balancing act. Maybe we won't have to wait too long for this to happen, given the current global situation. Have you had to cut down on your expenses so as to maintain the percentage of your income you allocate to savings & investing?, Or you have adjusted the percentage for savings and investing so as to accommodate and maintain your standard of living?
In terms of savings, it has definitely made it slower.
Groceries & prices in generally have crept up over the past few years that has stymied savings progress, whilst wage growth hasn't seen the same growth.
In terms of investing, it might have actually helped. Most of my portfolio is in stocks and cryptos which generally positively associate with inflation.
This is the reason why I only do investing from now on and I don't have any plans doing some saving especially with fiat knowing that the rate of inflation in my country is just continuously going up at a really fast rate, investing saved a huge portion of my money.Groceries & prices in generally have crept up over the past few years that has stymied savings progress, whilst wage growth hasn't seen the same growth.
In terms of investing, it might have actually helped. Most of my portfolio is in stocks and cryptos which generally positively associate with inflation.
And then we have a population unable to thrive and build wealthy during their lifetime. Even worse is that it's the legacy they pass to the next generations.
For sure.
In my country inflation has exceeded target for the past month and the central bank is doing absolutely nothing.
It's a bit ridiculous. Groceries and petrol are clearly increasing in price week on week yet the central bank is still pump stimulus after stimulus as if their end goal is to debase the currency to the best extent possible. Diversify your assets out of fiat, please.
In my country inflation has exceeded target for the past month and the central bank is doing absolutely nothing.
It's a bit ridiculous. Groceries and petrol are clearly increasing in price week on week yet the central bank is still pump stimulus after stimulus as if their end goal is to debase the currency to the best extent possible. Diversify your assets out of fiat, please.
In terms of savings, it has definitely made it slower.
Groceries & prices in generally have crept up over the past few years that has stymied savings progress, whilst wage growth hasn't seen the same growth.
In terms of investing, it might have actually helped. Most of my portfolio is in stocks and cryptos which generally positively associate with inflation.
This is the reason why I only do investing from now on and I don't have any plans doing some saving especially with fiat knowing that the rate of inflation in my country is just continuously going up at a really fast rate, investing saved a huge portion of my money.Groceries & prices in generally have crept up over the past few years that has stymied savings progress, whilst wage growth hasn't seen the same growth.
In terms of investing, it might have actually helped. Most of my portfolio is in stocks and cryptos which generally positively associate with inflation.
This is something turns out to be a default thing and i agree into your sentiment that it is better to invest out your money on several investments like gold or something traditional including crypto.
On this way you could really save up yourself in risk of inflation which this is something inevitable.
In terms of savings, it has definitely made it slower.
Groceries & prices in generally have crept up over the past few years that has stymied savings progress, whilst wage growth hasn't seen the same growth.
In terms of investing, it might have actually helped. Most of my portfolio is in stocks and cryptos which generally positively associate with inflation.
This is the reason why I only do investing from now on and I don't have any plans doing some saving especially with fiat knowing that the rate of inflation in my country is just continuously going up at a really fast rate, investing saved a huge portion of my money.Groceries & prices in generally have crept up over the past few years that has stymied savings progress, whilst wage growth hasn't seen the same growth.
In terms of investing, it might have actually helped. Most of my portfolio is in stocks and cryptos which generally positively associate with inflation.
It has decreased my savings and I'm more leaning to have more types of investments, inside and outside crypto. I have to be flexible as I'm thinking about my retirement and when I'm retired, I still have to deal with inflation without any worry.
The essence of diversification including the outside crypto investments is very effective for this purpose. You'll have eggs in many baskets that will help you deal against inflation and price increase for commodities.
The essence of diversification including the outside crypto investments is very effective for this purpose. You'll have eggs in many baskets that will help you deal against inflation and price increase for commodities.
...also something that companies do all the time is that instead of raising their prices as they know people do not like this is that they lower the quality of the product itself or they give you less of it.
True, I noticed that the quality of products these days have been affected, and that all those nutritional information on the packaging of products, now more than ever are not 100% true, some are just written in adequate percentages for show, in reality these companies have reduced the quantity of these nutrients they use because they are being affected by inflation and have to meet up. To show that companies have really been affected to agree to your comment, i have also noticed not just a reduction in quality, but also in the quantity of products.
Inflation hasn't really affected me directly, I've mostly noticed it in the supermarket and in fuel. It's quite irritating, the same 6 pack of water bottles costed 1.40€ or 1.50€ a year ago, was now bought at 1.68€. Simple everyday shopping has gone up, I've got plenty of examples to present.
On terms of investing now, I'm not directly affected due to me refraining from using my own salary for investments. I prefer DeFi and not trading anymore. Personally, I use signature campaign earnings and cryptocurrency for investing.
That is what is so pernicious about inflation, it may not seem like a big deal to pay 18 cents or 28 cents more for the same product but that is an increase of 12% to 20% in a single product and if you see these kind of increases in all products then suddenly you buy a lot less, also something that companies do all the time is that instead of raising their prices as they know people do not like this is that they lower the quality of the product itself or they give you less of it. On terms of investing now, I'm not directly affected due to me refraining from using my own salary for investments. I prefer DeFi and not trading anymore. Personally, I use signature campaign earnings and cryptocurrency for investing.
In terms of savings, it has definitely made it slower.
Groceries & prices in generally have crept up over the past few years that has stymied savings progress, whilst wage growth hasn't seen the same growth.
In terms of investing, it might have actually helped. Most of my portfolio is in stocks and cryptos which generally positively associate with inflation.
Positive investment advantages definitely belong to traditional investors before the global inflation event occurred, due to the entry of a new force,Groceries & prices in generally have crept up over the past few years that has stymied savings progress, whilst wage growth hasn't seen the same growth.
In terms of investing, it might have actually helped. Most of my portfolio is in stocks and cryptos which generally positively associate with inflation.
those are people whose income criterion is affected by inflation, and their currency depreciates heavily while daily consumptions suddenly increase sharply, they need a cupboard to store their results as well as be able to exploit a little more unexpected results such as stock indexes. That transforms the market into more optimistic and those who sharpen their consciousness early will inherit a more growth-filled environment
In terms of savings, it has definitely made it slower.
Groceries & prices in generally have crept up over the past few years that has stymied savings progress, whilst wage growth hasn't seen the same growth.
In terms of investing, it might have actually helped. Most of my portfolio is in stocks and cryptos which generally positively associate with inflation.
This is the reason why I only do investing from now on and I don't have any plans doing some saving especially with fiat knowing that the rate of inflation in my country is just continuously going up at a really fast rate, investing saved a huge portion of my money. Groceries & prices in generally have crept up over the past few years that has stymied savings progress, whilst wage growth hasn't seen the same growth.
In terms of investing, it might have actually helped. Most of my portfolio is in stocks and cryptos which generally positively associate with inflation.
In terms of savings, it has definitely made it slower.
Groceries & prices in generally have crept up over the past few years that has stymied savings progress, whilst wage growth hasn't seen the same growth.
In terms of investing, it might have actually helped. Most of my portfolio is in stocks and cryptos which generally positively associate with inflation.
Groceries & prices in generally have crept up over the past few years that has stymied savings progress, whilst wage growth hasn't seen the same growth.
In terms of investing, it might have actually helped. Most of my portfolio is in stocks and cryptos which generally positively associate with inflation.
I think one of the major reason is economic slow down during the past years which has impacted all businesses worldwide and as a result reduced the income of families. How people can making savings when they have not enough income to run their daily life. There is another reason which has pushed up cost of everything and that is the cost of transportation which has jumped many folds when countries started opening up after corvid-19 vaccination.
The inflation is not only affecting savings and investment, it has also affected already saved money. Some countries fiat is lossing value on daily bases. And people that have saved when such monies had value are running on losses now. What your saved money could get you 1yr ago, you will be needing double of such money to get it now. And saving does not multiply.
With the present reality, I think savings is no longer a good option. Rather investment with short-term returns should be considered.
Why would only go for one option if you could have both? You can have savings at the same time you could have investment so that you wont really be bothering yourself in regards into this issue of inflation.With the present reality, I think savings is no longer a good option. Rather investment with short-term returns should be considered.
This is an inevitable thing but what matter most here is that you do able to know on how to sustain yourself on the way on making out investment.Inflation is there but doesnt mean that it is
really giving out that big impact and to think that there is still lots of various ways on saving up your ass.
In terms of savings, it has definitely made it slower.
Groceries & prices in generally have crept up over the past few years that has stymied savings progress, whilst wage growth hasn't seen the same growth.
In terms of investing, it might have actually helped. Most of my portfolio is in stocks and cryptos which generally positively associate with inflation.
Groceries & prices in generally have crept up over the past few years that has stymied savings progress, whilst wage growth hasn't seen the same growth.
In terms of investing, it might have actually helped. Most of my portfolio is in stocks and cryptos which generally positively associate with inflation.
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