Having a

Happy Family

is the main goal in life. Family is also the favorite destination because there is safe, warm, comfort, motivation and support.

7 Ways to Protect Against Inflation

>> Feb 10, 2012

As this blog has discussed, finances are a huge key of a happy family. Whether you have tons of money to invest with or none at all, preparing for tough times is crucial. With all the talk of inflation, hyperinflation, and the devaluing of the dollar, it can all leave the average person wondering how they can protect themselves if the dollar does indeed crash. To help, we thought it would be a good time to discuss the basics of protections against inflation. Check out the below seven tips to learn more about possible ways to protect you and your family's future.
1. No debt – If you currently hold debt that is not on a fixed rate, pay it down as soon as possible. This can and often does include credit cards. The introductory APR may be enticing, but if and when inflation hits, the interest rates will rise, which can add up to hundreds of dollars in a short amount of time if you owe enough.

2. Own your home – As inflation rises, so too do prices. If you rent your home, expect a big surprise when it comes time to renew your lease. Those who own their home will have no rise in the amount they pay for mortgage, which brings us to:

3. Adjust your mortgage – If your mortgage is on an adjustable rate, now may be the time to lock in the low interest rate before it rises. Although this may sound difficult, it can be done with a simple phone call to your bank. If you do have a fixed interest rate and plan to live in your home for a while, then you can also ask if it is worth having your mortgage readjusted, which can pay off in the long run.

4. Staples – Although prices rise during inflation, there are some industries where people will still buy. Items such as food, gas, and healthcare still need to be bought even in a down economy. Those who are investing can check these out to see if they are right for them.

5. Inflation linked bonds – Did you know that there is a certain kind of bond that is specifically created for inflation? It is these kinds of bonds that are also known as Treasure Inflation Protected Security and Series I Bonds that are specifically designed to hold up during inflation. Although they do not pay big dividends, they do keep up pace with inflation.

6. Metals – All those who tell you to buy gold are on to something. Gold and other precious metals hang on to their value because they cannot be printed and are not as effected by inflation. For example, $1,000 worth of gold today will be worth $1,000 of goods in the future, even if prices go haywire.

7. Add to your retirement – If you are currently putting money away in a 401(k), consider putting a little more in it. If your dollar is going to be worth less soon, investing it in the future can both avoid losing value now and adding up to more later.

Chelsea Smith is a psychiatry student who writes for How to Become a Psychiatrist which helps others on the path to becoming a mental health professional.


1 komentar:

mico February 15, 2012 at 2:27 PM  

nixe tips but i will use this tips anyway and thanks from mico

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