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4 Ways to Prepare for Mega InflationSalem-News.com
The single most powerful economic tactic is reducing monthly expenses.
(SALEM, Ore.) - Inflation is one of the biggest lifestyle deflators of all time. It's a matter of simple economics. When prices rise faster than wages, as they are doing now at a record pace, your paycheck automatically shrinks.
As 2022 chugs along with no end to the horrible economy in sight, there's actually a bit of good news. There are many tactics individuals can employ to wage war against prices that rise faster than wages.
The single most powerful of them is full of logical commonsense: reducing monthly expenses. For working adults who are still paying on old student loans, refinancing can meet the crisis head-on.
Other strategies that have worked in times past include adding hard assets or commodities to a portfolio, creating a second income via a micro or part-time job, slashing personal consumption of energy sources like oil and electricity, and avoiding a volatile stock market.
Here are details about each approach.
Minimize Monthly ExpensesIf you're making monthly payments on one or more student loans, there's a silver lining in that dark financial cloud. Those who owe education debts from college and grad school days can refinance the loans into a single obligation.
If you choose to refinance student loans with NaviRefi, you can gain access to more favorable overall terms, like more time to repay, lower interest rates, and reduced monthly payments. Plus, there's only one payment per month to attend to, as well as an immediate potential reduction of expenses.
Getting ready for another round of inflation can be a frightening prospect for people in all income groups, but leveraging the power of student loan refinancing can lessen the financial sting of higher consumer prices.
Acquire Inflation-Proof AssetsWhy not add a few assets to your physical investment portfolio, like fine art, investment-grade wine, small quantities of gold, etc. Also, consider a few non-traditional intangibles like cryptocurrency and real estate shares, both of which have the potential to outperform the stock market and help shield savings from fast deterioration.
Build a Second Income StreamOne of the all-time favorite tactics for beating the high cost of living is a second job. It's a cultural tradition, in a way, to seek extra work when times get tough. Fortunately, in the digital economy, you won't have to stray far from home to snag a few extra bucks.
Explore the possibilities of doing online tutoring, website evaluations, and product reviews. All are realistic ways to add five or ten hours of paid work per week.
Cut Oil and Power ConsumptionWith gasoline prices at all-time highs, and electricity a close second, it makes good sense to reduce usage as much as reasonably possible. What are some of the techniques people use to cut these expenses? Start by installing a programmable thermostat and adjusting the temperature a couple of degrees away from your ideal comfort range.
After a few weeks, your body will grow accustomed to the slight change, and the monthly utility bill will be lower. Then, make a plan to eliminate at least one-fourth of the miles you drive each week. Use public transport, walking, and carpooling to take up the slack.
Source: Salem-News.com Special Features Dept.
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