Topic: Inflation is making a mess of my savings. - page 9. (Read 1249 times)

I agree.

This is what I have learned from the influence of social media finance content creators. They're all saying the same thing that you shouldn't save money and if you're going to save money, that should only be good for the emergency purposes.

The percentage the savings and time deposits in the banks aren't going to be enough to cover the entire inflation. And they're always the winner on this case from the deposits of their customers.

Aside from Bitcoin and precious metals/jewelries, real estate is one of the best hedge.

Inflation is a big problem around the world even big countries experience it and don't know how to solve it, I can really feel the inflation In my country back in the back my 500pesos is already a big amount of money and Its difficult to spend it on only foods if your not a big spender probably 50pesos is already enough for your food but now you can't buy anything on your 50pesos, rice, and meat will cost you around a 100pesos which is a big pump in the market.

Putting your money in your savings account is not actually a great idea at some point, just because of the inflation alone but it doesn't mean that you should stop saving your money, because you're not all of us have a big amount of money already, of course, your gonna need to save first in order to earn a good amount of money or at least invest. But make sure that you already have a big amount of money Don't just put it in your bank and let it stay there, what you should do is make your money work your you invest in something that could generate income or a passive income.

That's why you shouldn't saving your money, instead invest your money.

If you hope the interest rate from your saving can cover up the monthly fee and inflation rate, it will not work because bank interest rate is really low and can't be used to hedge against inflation. If you want to hedge against inflation, you need to consider to invest in Bitcoin or gold, depends on your choice, your knowledge and your risk management.

Unfortunately people are saving money in fiat currency which the purchasing power is shrinking. And they couldn't also decide which fiat to buy or asset to invest because while they may need to invest, they may also need the money instantly in case of something.

If they put it in BTC, they might also lose the value because its price is very unpredictable. The world economy is disturbing everyone. This is avoidable but world leaders prefer to make us suffer.

Your savings is creating a mess because you are probably investing in the wrong assets. What are you saving? FIAT in bank account? Of course it is going to fail in an inflationary environment. You should buy hard assets and commodities like stocks (commodities and consumer defensive) , gold, rice, toilet paper, bitcoin, olive oil, farm land etc

If you are not buying anything real which people will want to use in the future, you are wasting your money.

During periods of high inflation, its best not to keep all your money in a savings account. Sure your bank will pay you some yield but in reality, if you get 5% from the bank, the real inflation will be more like 10% and you will lose your buying power.

What is scary is that say they raise rates high enough to cause deflation. If it starts a recession then its not good because they will print more money to stimulate the economy and double digit inflation will be back. You need assets like stocks, real estate or... bitcoin.

A negative effect of inflation on the economy is that the opportunity cost of cash decreases and people feel comfortable spending cash rather than saving it. Financial institutions suffer from a lack of savings and investment in the economy declines. Also due to inflation the standard of living of people with stagnant income comes down so people cannot save. Also, increasing the interest rate may not increase the deposits in the banks, but the common people will continue to save when the purchase of daily commodities becomes a little easier. In order to reduce inflation, the government can increase the amount of imports to increase the supply of goods to the market during times of inflation this may reduce inflationary pressure.

I agree with what you stated. Although inflation is truly present, the impact it holds on us are seen and felt in different levels depending on our unique situations and economic capacity. Moreover, we also view and face each situations differently and it affects the way we take each step against the negative effects of inflation in our lives.

Very biting and felt, especially for people who are middle to lower income. Well, if it is said that the Ukrainian and Russian Crisis are the causes of global inflation with the crisis and gas supply shortages in Europe and other countries, of course it is not the dominant one. We need to know that inflation can be caused by factors such as demand growth that is faster than supply, rising production costs, currency devaluation and wage increases. That's in addition to the things I have mentioned above.

Well, the impact of inflation certainly cannot be averaged on all income groups. For example, in some cases we often find in the market where the price of certain goods can increase faster than the price of services. What does it mean? It means the rate of inflation a person faces depends on what they buy, where they live, and where they shop.

Yes. We are invited to think about getting through a period of high inflation. There are steps that can be taken to deal with inflation and can help reduce the negative effects of inflation Such as taking part time jobs to Increase Income, reduce unnecessary expenses, or whose prices are rising due to inflation, and most importantly make a realistic budget and follow disciplined financial plan. That's all if done well it will be easy to fight it.

I don't know where were you came from, but from where I come from, the inflation is quiet low, from 2017 it always less than 4%, since I am not an expert in macro economy I can't validate nor knowing how is that number came from. But if we compared the price of some commodity like gold and petrol, their price has been up about 25% since 2019. So, I guess my money has 20% less value to bought some stuff.

Inflation is generally very hard to overcome. The only way is to find income and side jobs to survive in these inflationary times. And saving is really hard nowadays. But I suggest that at least we have some spare money if there is an urgent situation so that the situation doesn't get worse.

If you have savings, what you have to do is invest them, which is how you beat inflation.

If you expect those who have caused inflation to come and solve the problem for you, you've got it bad. For these things, the best solution is to move your ass instead of complaining like you couldn't do anything about it


Go to Argentina and you will see that the inflation you are experiencing is child's play.


Earning more money. And investing.

The war in Ukraine affected the price of gas and grains at the early stage of the conflict. Gradually the world has overcome the oil and gas shortage. And the grain deal between Ukraine and Russia in Turkey stabilized the price of grains. If you rely on the World Bank and IMF to help you fight inflation, then you will be highly disappointed. These agencies want your country to keep going through financial problems so that your government can come and get oppressive loans with throat-cutting interests.

If you want to overcome inflation, these are my suggestions.
1. Don't save money in banks because it will gradually become worthless
2. Invest your savings is a profitable venture
3. Aquire a new skill and get a side job
4. If you can, start a business
5. Cut your expenses by avoiding wasteful expenses.

That it true that purchasing powers of citizens are getting weaker and weaker and even the governments are having a hard time to implement those consumer laws because they cannot even control the surge in prices of the goods and services. Even the salary of the people who have a regular employment is suffering because the prices goes up but the salary is not increasing, it decreases the purchasing capacity of the people to buy their basic needs to sustain their daily needs. To be able to sustain the daily needs we should decrease our budget and buy only the important ones and try to find other source of income so that we could survive in times of inflation.

What commodities, stocks exactly are you saving if inflation is taking such a big slice of it? I am hoping it's not fiat money, because that's pointless at this moment. This crisis isn't easy to fix and even suggesting there are easy solutions seems like pure populism to me. World is on fire and things will get a lot worse before they get better. You could try investing to gold. That's not going to make you a millionaire but it doesn't fall as fast as many other in crisis.

Electricity bills alone wiped my savings as i had a horrible contract but i've risen from worse and i can do it again.

There are a number of ways to look at the current inflation related struggles for a lot
of people, working twice as hard or as long to earn moe money to bridge the gap
is one for sure.

Whats alao crippling a lot of people is the rising interest rates which central banks
impose in order to slow inflation, we are being hit on both sides.

I pity people who are looking at FIAT savings evaporating. Those who have moved some
of it into Bitcoin have done a wise move, even if its short term.

Inflation really is a mess that’s ravaging a lot of financial security right now. Even though it’s not as hard as it was during the pandemic, it’s still something that’s still a pain to a lot of us. A lot of poor financial movements and planning from the governments really messed up a lot of the balance of things in the world. Unfortunately though, they wouldn’t take accountability to a lot of their actions and would rather pass the burden to us citizens than to admit that they did an oopsie. Wages aren’t improving, prices are still soaring, and none of us are really getting our quality of lives improved.

You can just accept the fact that inflation is one of the permanent things in the world. No matter how good an economy is, someday somewhere in the future it won't and that's when inflation will come in. It's a domino effect when we've seen the FED had printed a lot of money during the height of the covid-19 pandemic and that has affected a lot of markets and with the addition of the war and shortage of food and supply, it had all came up with this inflation. Well, David Hume has discovered inflation and if it wasn't discovered maybe we're all living in peace and harmony.

Get more source of income and income generating assets.

Inflation is inevitable but we do know that it is neither would really be going upward but most of the time it is but there are news on some countries on which it do hit up some low numbers but eventually this wont really be
still that something that could really be think about because in the end of the rope the prices would really be still going upwards. Its true that there's really that consumers protection but we cant really tell that they are useless considering that control of market prices is really that their job and if ever the prices turns out to be higher then there's no stopping of it because it would really be basing up on the supply and demand things plus
on other factors on which it would really be that resulting into those price increase. Better not to make yourself that mindful about those things and it would be better if you do focus yourself on having more income
source so that despite of the worsening situation about inflation but since you could financially be able to sustain yourself because of other income source on which this is where you should really be focusing on into.

Inflation is the theft of people's labor. Capital pays much more than labor now. You can work twice as much, inflation is there and your salary is no longer worth anything.

People have hardly saved to buy a house or other property, but when they have enough money for a bank loan, the prices have risen so much that they can no longer buy....