How a good financial plan will effectively protect you from inflation

ANGELA .W. WANDERA By ANGELA .W. WANDERA, 19th Oct 2011 | Follow this author | RSS Feed | Short URL http://nut.bz/2xdfvlk1/
Posted in Wikinut>Money>Money Saving Tips

f the best ways that one can save is through buying of shares in the stock exchange, or even buying precious metals like gold that will not loose value even if there is an inflation.

How a good financial plan will effectively protect you from inflation

When inflation sets in it will upset an individuals finance in a big way especially if they were not prepared for such a time. This is when an individual has to come up with a hedge that will guard them from going down with the inflation strike. There are ways that one can employ to be protected against inflation effects and these will include;

1. Hedge for the Home pricing Inflation- If one is planning to put aside a certain amount of money for a deposit on their house, then if at all the pricing of the houses is affected by the inflation the individual will be protected against high prices of the house. It is therefor advisable for an individual to make a deposit on the house if they are able too, before an inflation comes along. For instance if one has already deposited on a house then when the inflation rolls in they will not be forced to pay so much more for the house because of the effects caused by the inflation.

2. Hedge for the Fuel inflation- Gasoline prices keeping changing every now again due to external factors like destruction of oil fields in Libya, which is among the leading oil producers who dictate the fuel and oil price sin the world today. The average family can dodge the effects of inflation if they for example buy gasoline in advance in a prepaid form, this way they will saved from having to deal with the rising and falling of the gasoline prices. They should however buy the gasoline at a time when the price is not very high.

3. A Hedge for Food Inflation- Food costs keep going up and up by the day that is why it is wise to come with a good plan that will help one not feel the pinch of food inflation when it strikes. It is good to stock up with food stuffs is possible and avoid being tossed around with ever increasing food costs that vary from time to time. When an individual has a feasible budget for food costs then they will be able to be well cushioned in times of food inflation, they will not have to be affected by the inflation.

4. Savings is a very important tool in helping one face inflation financially sound. The culture of having savings put in investments is a good way for one to safely save money and have it still retain its value. Some of the best ways that one can save is through buying of shares in the stock exchange, or even buying precious metals like gold that will not loose value even if there is an inflation.

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Effectively, Financial, Inflation, Money, Plan, Protect, Tips

Meet the author

author avatar ANGELA .W. WANDERA
I have a passion for writing, I love to share my knowledge with others and enjoy reading and rating articles.
I mainly write articles about personal finance, business, home and garden etc.

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