Topic: How has inflation affected your savings and investing? - page 3. (Read 566 times)

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.

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.

Not everytime, if the expenses aren't needs then you don't take care of those first, you have to cut down on those expenses that are just wants and invest more. I guess that's what the OP is trying to ask.


It has been the other way round, expenses has been cut them and I'm beginning to see the positive side of it. I walk more often now instead of driving and consuming fuel. Public transportation has also been embrace meanwhile I wasn't a fan of that before. Still though I haven't allocated more to investing instead I have been saving but not in my local currency. I have been doing that in foreign currency so technically you can say I'm investing because there's a 90% guarantee of me having a nice ROI on my savings when trading back to local currency.

As I grew up, inflation is always present. It is hard to earn, save, invest and maintain our standard way of living at the same time. So to be able to make everything still in balance, I am always trying to sustain my full time and part time job(s). With that, I may use my salary in my full time job to buy our everyday expenses, then my profit from part time in saving. But of course it will not always go in an easy way so there are times that I need to adjust my savings just for our living.

For me, it's still a good option to save some of your money not mainly for the future of your family but more on the circumstances that will just suddenly occur. It will somehow bring relief if you always have your cash on hand. But i admit, i am also affected with this rising inflation but not that much. I have learned even before to save more by not spending on the things that are not important and focus on the basic needs. And for my investments, i never invest more than what i can afford to lose and as much as possible, i play safe most of the time. Although i'm not really into huge profits but that's fine as long as i'm gaining profits in a small way consistently.

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.

I think your country's government should offer you help or the other people especially in this pandemic when people are almost suffering from the cost of living. I've seen some people that couldn't afford to pay their bills anymore especially to those who rented an apartment but couldn't get to work because of the lockdown. Lucky for you, because you will be able to work from home despite the fact that most people can't get to work due to pandemic.

Inflation is really hurting some people's pocket especially the cost of the food that's why I've said it before that we should have to build our own garden of vegetables in order to avoid paying too much for the food when buying in the market.

In the case of rampant inflation which is where I live, the word "Savings" does not exist for the middle class, what they most seek is to be able to survive the system that is imposed, where without exaggerating people what they are looking for is to be able to survive, and this includes the constant search for the most basic items.

The work is over because there is no industrialization, what people do are activities that can generate a lot of money with a lot of effort, some have appealed to playing NFT games to see better results, and every time there is an emerging option, they do not hesitate to take it . The constant search for a better life includes leaving the country, but doing so is worse because most of those who leave are illegally because passports turn out to be very expensive, and everything causes a much bigger problem. Inflation where I am really cannot be fought with the normal solutions of any country, this leads to the conclusion that the effect of inflation destroyed any possible particular solution for people, in this case inflation did destroy all signs of a good economy and opportunities.

So far the effects on my finances of the inflation that is going on has been minimal, however I have noticed the price of certain products that have gone up significantly especially if you have to import it from another country, still I know there is a chance this will get worse in the future and I am preparing for it by saving all the money I can and then I invest it in bitcoin, after all it would be a huge mistake to try to solve your problems with inflation by saving in a currency that could be printed to oblivion.

Inflation has been one strategy used to control importation and exportation of goods by the government in recent times and even happens more in my nation but the surprising thing is, it haven't changed much as to individual lifestyles. For me,  I remained almost indifferent of the situation. I still live my normal life, save and invest when opportune or what to and life keep going on. Its the make fir most persons too and it make you wonder. People still go on vacations, shop for expensive or luxurious things and more.

Some of the persons these inflation actually affects the most are those below the middle class but them too have learnt how to survive too. I was talking with someone some time ago and the person actually gave me an insight i failed to consider from the local traders. Not forex or crypto, I mean the rural vegetable and related stuff traders.
Normally, you look at the farm produce and feel it should be cheap since, They didn't use much resource in its growth but then, you fail to look at the fact that, though we have money, there is still a barter system in place. That these traders needs this money to buy other commodities,. Commodities that these inflation have affected and to meet up with the price demand, they ought to infalt the price on there farm produce too. It's the way it is and we continue to coexist just fine with the inflation.

Now imagine the same thing that was worth 44 now worths 95. That is some nations are living right now, for example I just lived in today so I can give this example, something that worth 68 just few months ago, worths 82 today, which is a huge difference when you think about it for a few months. I agree it hasn't been increasing for a while, for like 2 years or so it was around 60-70 levels so it was bound to go up one day but suddenly it went to 80+, I was expecting more like 72 at the very best.

Hence, inflation impacts hundreds of millions of people around the world every year, some nations like yours doesn't have something huge like this, but there are at least 10-20 nations that have it horrible and combined population numbers of those nations makes up for 200-300+ million people.

Personally I think it’s best to cut down on expenses, so that you can be able to maintain your savings and investments. If you continue with heavy expenses at this time it's really going to affect you in the future. Then another thing we have to know is that it’s not just all about savings and making little investments, yes investments can help you but you also need to work on having a good job or a really good source of income that can carry you at this point in time.

If you are working and you feel maybe the payment you are being made is not enough for you, then it’s not bad to ask for an increase Or even get a better job than the one you are doing. So there’s just a lot to this than just cutting down expenses.

In which sector are you working? During the last 4-5 years, salaries in white collar sector has increased by 8% to 10% on average (per year, in USD terms), although the pandemic has once again caused a downturn since 2020. For the blue collar jobs, the increase has been even more noticeable. If your salary hasn't increased that much, then you are missing out on the opportunities. Take my advice and change your job. No matter whatever work conditions your current employer is offering, low salary makes them worthless.

Inflation is so high that even your savings are reduced that you can't get anything worthing it in the market. The cost of goods have been affected and you see even your salary goods for buying monthly needs and just like that in turns every month. In the past, you could save some money from salary but not that old ways anymore because cost of products have gone up and you have to buy to survive. You can't talk of savings now if you don't have multiple income. Some products have increased 100% in two years while salary is still same amount with no increase, so how is savings possible in such situation.

The best strategy to fight inflation and to avoid depreciation of your savings is to invest in Top 10 crypto coins which are anti-inflationary and in deed Bitcoin comes on Top of them. Having said that the 2nd best option is to invest in stocks and Real Estate because historically both have given return to investors which is certainly more than inflation. There is another way to fight inflation which is reduce consumption of energy by using Solar system for your homes to reduce your electric bill as well as switch to Electric car to cut down your fuel expenses. 

Inflation has ravaged several nations as a result of the Covid-19 outbreak, and since other countries have reopened, it has been on the rise because to rising demand and supply. During the lockdown, the US, for example, went brrrr with about 1 trillion dollars in circulation in just 8 months, and other countries adopted their system. Fortunately, the US was able to preserve transitory inflation of 5%, but those who copied their techniques are suffering from hyperinflation. My country's purchasing power is currently at 17%, implying that the currency's value has dropped by 17%, effectively killing civilians without a raise in the minimum wage.

Gladly i am not really affected by it although pandemic attack my country too. My company still opening although sometimes we're work from home and i know how other people suffer, beside spend for daily living and saving it, i can help others around me although it is not much. For now what people need is help from another and not only people who show their wealth to others who suffer.

For the past years, inflation is already a thing and it is normal to occur in a country's economy. There is a certain level of an inflation rate that isn't really much felt by the citizens. However, last year and this year, inflation hits differently. It's much more evident, felt, and seen by the consumers. Adding the fact that we are in the middle of a pandemic makes it much worse. The cost of products and services offered is higher compared to before because there is a higher inflation rate recorded that isn't normal if statistics will be the basis. Here in our country, if before, the average amount you have to spend is 300 bucks to feed a family of 5, now it would not be enough. The prices of goods are just so damn high, particularly the meat and vegetables. Transportation issues and low supply of goods make the prices go higher and higher to the point the commoners can barely afford a decent meal. Transportation fees increased too because of social distancing protocols that made the public utility vehicles limit their seating capacity to half. Electricity and water consumption got higher too because the family members are spending most of the time at home, making the bill higher.

It's really a challenge to get by and survive most especially to the working classes who are just making the ends meet and are living paycheck to paycheck basis. Personally, there are some expenses that had been cut down since the pandemic started such as the school allowance which is a breather because it was allocated elsewhere to address our necessities. Personal savings isn't much affected, fortunately, but still can't deny the fact that there are still times I have a hard time on it too. There are bad days and good days after all. Hopefully, we'll experience more of the latter than the former.

Inflation is something that we can’t escape, because it will happen anymore without warning. But of course, we always have to be ready in managing our finances very well and always learn to diversify.

And yes I’ve minimized my spending on unnecessary expenses (except mandatory ones such as monthly bills, essential goods, etc.) and investing more on assets (but with DYOR of course).

For me,,, very badly but not in the way I expected.

Most people think inflation means they save even more,,, or put it in even higher yield programs like insurance mutual funds are so popular now compared to bank schemes. I still choose banks but only using government backed long term funds.

But the fact is inflation is growing faster than interest so I am saving less and less,,, and investing more and more in Bitcoin and pension funds.

It must be the month of December before inflation will happen. The current increase in the price of goods in recent time is still as a result of COVID-19 pandemic and nothing else and it may last till like next year before things will normalize.