Avoid Risk
If you don’t have debt to focus on paying, and have a good amount in your savings account, you can protect (and even grow) your wealth during inflation by investing in safe bonds.
Here are a few to consider during inflation:
- I-Bonds
- TIPS (Treasury Inflation-Protected Securities)
- Adjustable-Rate Bonds
Each of the above bonds can adjust with inflation rates. That means you’re protected from the unexpected rate changes that come with inflation.
Cash Is King
During times of uncertainty, it’s necessary to have some cash that’s available, safe, and accessible.
If you haven’t been great at budgeting before, now is the time to start. Planning your expenses will help you save more in case of unexpected costs and emergencies.
Not sure where to start? You can use the 50/30/20 rule:
- 50% of your income goes to needs (rent, bills, groceries, medical)
- 30% to wants (recreation, online subscriptions, etc.)
- 20% to savings
Aim to get your savings to a level where you can afford 3-6 months of necessities if you suddenly lose your income. However, if you have debt, it’s best to prioritize that rather than adding money to your savings. This will give you a better return in the long run.
Other cost saving ideas include:
- Couponing
- Look for cheaper alternatives for food and clothes
- Reducing energy use
- Cut down on subscriptions
- Minimize eating out or getting delivery
- Consider side jobs
Sell Jewelry to Free Up Cash
A great way to free up cash is to sell unwanted items. If you have some unwanted fine jewelry, now would be a great time to sell. But, not to a pawn shop or on a website like eBay –these risky options that will give you less than fair market value.
Instead, opt for the safe and secure method, where your jewelry will be appraised by someone who is certified and trained in fine jewelry value.
There’s a reason why Diamond Buyers is Houston’s premier jewelry buyer. Learn about our safe and secure process:
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