Inflation rates are rising at unprecedented rates with the U.S. experiencing the biggest jump in more than 30 years. This is due to factors like surges in product demand, production cost increases, supply chain breakdowns, and changes in the housing market. Inflation has been part of our country since the very beginning, and it’s not going away anytime soon–so how can you make sure that your finances are secure?
To understand how to protect our finances we first have to understand why inflation occurs. There are two major theories to inflation: the cost-push theory and the demand-pull theory. The cost-push theory of inflation suggests that higher costs for producing goods rasing the overall prices of those goods. The demand-pull theory suggests that when demand for goods outpaces the available products, prices rise and inflation occurs.
Both of these theories make sense in looking at our rising prices for goods and services today. The effects of inflation are already being felt with higher costs of living and increased interest rates, and this will eventually lead to social security rising to combat pressures felt from the rising inflation.
To keep your finances secure, it is important to start investing money. Investing in stocks, property, and commodities all have the chance of a secure ROI that will ensure that your money is growing. Investing more in your retirement fund also ensures that you will have more money saved after your working years. Learn more about protecting your finances in the infographic below:
Source: Expensivity