The golden rule of making yourself wealthier is to stop losing money. Sadly, inflation is one of those unavoidable things in life that will ultimately make us lose money. Most people store their savings in an account that they lock up and never touch unless there’s an emergency. Sadly, that’s one of the worst ways to save your money because of one simple fact: it’s sitting there doing nothing.
Sure, you might save some money for an emergency fund, but it doesn’t change the fact your money isn’t being used. Inflation is going to creep up on you and you’ll eventually realise that your money is no longer worth as much as it was a few years ago. It will silently lower your wealth and the only people that will benefit are the banks. If you want to grow your wealth and save money, then here are some tips on how you can overcome the inevitability of inflation.
Invest in real estate
Investing in assets is one of the safest ways to ensure that inflation doesn’t screw you over, and one of the best types of things to invest in is property. This is because property is always in demand. Sure, you could invest in something more novel like designer clothing or antiques, but property has a far easier time selling and you can even make some profit from it if you’re smart about it. Look for the best real estate opportunities close to you by searching on the internet and speaking with professionals. It’s a good idea to specialise in a niche when you invest in property, but keep in mind that it’s going to cost a lot of money to get started.
Invest in businesses
Another method of turning your money into more money is to invest in a business. This is arguably more involved than simply owning property and collecting rent, but the possibility of generating more profit or even quitting your job to work full-time as a self-employed individual are more attractive. Starting your own business will require some smart ideas. However, if you’re not interested in becoming the next big entrepreneur then you can make a living by copying other ideas. Of course, you shouldn’t be stealing someone else’s products oR brands, but you should follow working formulas instead of trying to be innovative or creative. This is a sure way to turn your investment into something profitable and it’s a great way to protect you from inflation.
Mortgages are usually subject to interest changes because of inflation. If you’re serious about owning your home and paying it off over a long term, then make sure you fix your mortgage rate so that it doesn’t grow in the future. The best deals you’ll find will hover below 3%, which is the number you should be aiming for. Your monthly mortgage repayments will likely be higher, but at least you won’t be subject to inflation.
In short, if you want to save money then you’re going to have to learn how to spend it on investments. The other option is to lock interest rates for any kind of credit or loan you take. Either way, keeping it sitting in a savings account is the worst thing you could do if you want to truly save money.