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.
Key Takeaways
- 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.
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 RateZip. RateZip 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.
RateZip states refinancing can save hundreds or even thousands each year in mortgage payments. Comparing quotes through RateZip is free and won’t affect your credit.
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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.
Personal Capital makes preparing for your financial future easy by giving you free tools to see if you’re on track and what you can do to improve your chances of retirement success. The Retirement Planner has a default inflation rate of 3.5% but you can adjust it to run different scenarios to understand the potential impact on your Retirement Readiness Score™, showing you exactly where you stand today and in the future.
In order to get the most out of these free tools, you’ll need to link your financial accounts, such as any current or past employer-sponsored 401(k)s, bank accounts, mortgages, and brokerage accounts. Linking these accounts is super easy and fast through their secure platform and will give you access to your complete financial picture.
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 Wells Fargo Reflect® Card (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
15.99% – 27.99% variable 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 Wells Fargo Reflect® Card 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 get a one-year free trial for M1 Plus (valued at $125) and a bonus of up to $500 if you deposit $1,000 or more.