Don’t Let Inflation Dictate Your Financial Future
In 2022, as we enter the third year of the pandemic, the US is seeing the biggest inflation jump we’ve experienced in more than 30 years. Whether we believe this is the fault of a particular political party or a particular elected official, or even a foreign country, it’s important to understand what inflation means and how we can protect ourselves against it.
The increased cost of goods and services originates from a weakened currency. This weakness is brought on by a surge in product demand, surge in production costs, supply chain breakdowns, and changing house prices.
In 2022, compared to 2021, this translates to the cost of food increasing by 8.3%, healthcare by 6%, and energy by 4.6%.
So, what can individuals do to protect themselves and their financial futures? Some things that can help are investing in stocks, purchasing real estate, increasing education to increase earning potential, and setting aside more toward retirement.