Inflation is on the rise. According to government data, from February 2021 to this February, inflation grew by seven percent. That’s the fastest year-to-year increase since the early 80s. Here are some tips to make your money go further even as inflation stays at record highs.
Be in The Right Place
Now that the Federal Reserve has increased interest rates, you want to make sure your money is in the right place. One of the best places for your short-term money is at an online bank or a credit union. Both of those options typically offer savings accounts with higher interest rates than traditional banks. Remember, only keep money in savings accounts that you might want access to in the near future. Funds that are for the long haul should be invested, where you can get a much better return.
Speaking of investments, no matter what happens, you should keep your long term funds in the market. The return will be worth it. As CNBC reports, for more than 90 years, stocks have had returns in excess of inflation. Try to resist the urge to do anything rash. Stay invested and your money will reward you.
Try to negotiate your debts so you don’t feel the inflation crunch as much. Call your credit card company and ask about your options. Consider a balance transfer card that has a good, zero-percent interest offer. The faster you can get ahead of your debts, the better.
This article was originally posted on savvymoney.com
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