Bitcoin Forum

Inflation is really kicking in, the cost of things are getting really high in the market and its not even december yet, its effects are evident on the price of food stuffs, transportation, electricity bills, gas bills and others. How are you handling it and how has it affected your savings/your percentage for investing (if you have one)?

Have you had to cut down on your expenses so as to maintain the percentage of your income you allocate to savings & investing?, Or you have adjusted the percentage for savings and investing so as to accommodate and maintain your standard of living?

The retail inflation has been around 5-6% this year which means your expenses won't get increased by 5-6%, I don't think it'll affect the budget of a lot of people but obviously people will reduce most of the portion from the investment or saving that they were making, I barely see anyone reducing expenditure merely due to inflation, I think one should always consider inflation whilst preparing their budget for this year as well as the next year. The main thing is to consider inflation when you are planning for your investments and calculating your ROIs too.

It does hurt the budget but we also saved more because we don't really go outside when the pandemic shocked the world.
How come? Expensive kinds of stuff are always bought at malls or shopping centers.
Since we cannot get out anymore (we just don't want to) because of the terrifying illness that might be passed unto us and then with kids we tend to save more by avoiding to eat at fancy restaurants and buy things that we don't really need.
 
But it did hit the water and electric bills because we are now inside the house the whole day.
About food, vegetables and meat products are still okay but it is fruits that hurt my pockets. We want to be as healthy as we could to avoid being sick but it hurts to see that being healthy means you need to be almost rich.
Savings - As said above, when we break down the total amount spent pre-pandemic compared to now, we actually saved more.

I think Inflation is really becoming a thing in most countries of the world, it would definitely affect people's savings as they now have to spend more on their daily needs as cost of living is sky-high, and by extension, it reduces the amount one ordinarily delimits for saving and investment. In my country for example, I fear that if the rate of inflation continues to go up, then Sooner or later, people wouldn't even have anything for saving/investing, they would only be concerned if their income would be able to sufficiently take care of their basic needs.
In my opinion, it actually depends on how much the individuals source of income is, for people who earn quite well, I don't think they will have to cut down on anything and even if they will, it'll little or nothing. For people who aren't that buoyant, then they really have to make adjustments that will suit them, and this adjustments would have to favor their basic needs rather than savings or investments, cause that's what should come first.

For now, inflation is indeed a problem that hit the economy in several countries, it can even be said that most countries in the world are experiencing this. and the impact is indeed already felt with a few price increases as you said in your thread.
but reducing expenses is also not a good option at this time considering the need will continue to exist.
maybe it would be better than reducing I think more frugality would be very helpful to at least reduce the perceived impact of inflation that continues to attack.
besides that we also have to look at our income and adjust it to what is happening at this time so that we can maximize and survive the inflation that occurs.

So far my income do able to sustain somehow this current condition on where it is really just understandable because we've been always put up on this condition where prices do rose up
even pandemic situation didnt really happen on the first place.This is the importance on having also some savings and emergency funds too on where you could able to survive
if ever you do have a hard time on  compensating these increasing prices and also its always been important on looking for another source of income because you wouldnt
know on what comes next.Save up and diversify your investment should really be your main priority.

The inflation is really dipping a whole in the pocket as a result of high price, things are very costly and it is affecting income, the worst part is things get costlier almost on a daily basis, many people are really finding it difficult to sustain their families, things are not easy at all.

What do you expect? The inflation will never be controlled so expect that there will be more price increase in the days to come. And what saddened me is that i need to increase my budget for my daily needs so i can sustain what my family needs. When  it comes to my investments, i think its just a sort of fund management so i can still diversify my investments as much as i want. But i admit, my savings were really affected with the high inflation so whatever profits that i have from my investments, i make sure that some of them will also go to my savings. In that way, i'm still prepared with whatever circumstances that may come.

There are nothing in particular that you can do on this. You can save if you have left but you can't save when you have not taken food to your belle. If you don't enough with good diet, you are likely to have low immunity exposing your self to bacteria, virus and all kinds of infestion including covid-19. You can't cut down on expenses when you are already underpaid or not paid at all. Generally, life is now difficult across the land and inflation is not stopping anywhere.

Unfortunately even if that is the average inflation at the same time not all markets suffered the same rate of inflation, some are more affected by it while others are less affected by it, if a person out of necessity uses a product or service that has suffered inflation higher than that and it is something that they actually need then the effect that this is going to have on their finances is not going to be small, and they are going to have to adjust their behavior to deal with this.

Fortunately inflation has yet to hit very hard in my country but you can tell it will happen eventually. Covid really managed to screw up a lot of supply chains and it is surprising that we've been able to go so long without inflation creeping up in most of the biggest countries around the world, even with all that panic buying that was happening at times. It looks like that buffer zone managed the last about a year, people started saving heavily during the pandemic and now everyone is starting to splurge a lot more. They're also going back to work which is putting a whole load more cars back on the road which comes with it's own set of problems - traffic jams to larger fuel consumption to pollution all kicking back in. When inflation really kicks in and interest rates on mortgages start to rocket, then we'll really see much bigger problems and a recession is likely at some point down the road.

Average inflation means that the extremes are averaged out, no one can give a person-specific answer as expenses of each and every person are different, but an average person who does average expenditure which comprises of a mixture of various things will be affected by 5-10% only. Moreover, this is significant for most of the developed nations, on the other hand, most of the developing nations have this much inflation each year, for them, it's a very usual metric and generally, the pays in these countries are therefore adjusted each year for inflations. I don't understand why people like to create a big ruckus out of inflation.  During covid, it's still understandable that it could be a concern for some, in a normal environment, the pays would increase alongside Inflation which means you don't face a lot of effect of Inflation.

The inflation problem it doesn't become too serious in a developed country like mine and Covid has really managed to manage many supply chains over time and the fact that we can grow in the long run most countries. most developing countries have a high annual growth rate, for them it is a very normal number and in general wages in these countries are adjusted year by year. In general, life across the country is currently struggling and does not stop there. We must learn to endure and try to overcome difficulties.

Seriously in my country now it haven't been funny because the inflation is really high now and now my savings can't longer buy things I wanted to buy with it before I will definitely have to add money now before I can get anything I want and I don't really know how we are going solve this problem because is not really funny now because things are getting worst.

Usually people don't cut down on their expenses in order to invest more--and if they do that, it's a stupid move.  That's how traders/investors get into trouble, because they've got way more skin in the market than they should.  You should always take care of your expenses first, and then (and only then) invest in whatever if you've got cash left over.

Me?  I haven't been investing in much of anything as of late, but that's not strictly due to inflation but personal circumstances.  However, I have seen the prices of things I buy regularly going up and up.  One other thing I've seen is that manufacturers are shrinking the size of their products, whether it's peanut butter or bottled watter--and they're charging the same amount.  That's a sneaky way to inflate prices if you ask me.

Inflation is a global issue and it has made life difficult for everybody. Whatever you do to increase your income at the end it is eaten up by increasing prices of goods and services. The increase in cost of energy is the main driver of inflation because its trickle down impact comes on all kind of food stuff which is primary need to keep should and body together. The only way to fight inflation to increase income by making investment in Bitcoin which is anti inflationary currency or do extra work to increase your earnings to maintain standard of living.

The question is who is affected by inflation. Its the common man who work day and night to earn and save money, and at the end of the day he finds out that his saving is reduced because the value of currency is gone down. The people in power do nothing but just keeps on printing the fiat and increase their purchasing power.

This does not end here. How fair is that people in the US get free money in the name of stimulus checks while people in the under-developed countries have to work for the money. This is another cause of Inflation at a global level.

When the pandemic entered, the prices ballooned. The cost of public transportation in some routes here in my place, for example, have even doubled. However, this increase in the prices of goods and services have not factored regular inflation yet. This was just the immediate reaction to the pandemic. Inflation brought by the indiscriminate printing of money has yet to take into full effect until now. So I am really bracing myself for more rounds of price increases and further weakening of the purchasing value of money.

Quite frankly, I was forced to cut down on my expenses. But it doesn't feel like I am forced to do it because the prices have changed a lot. It was more like I was forced to do it because there is a pandemic. Expenses on travel and other leisure activities have gone down a lot not only because the prices have risen but movements are curtailed to the essentials.

Inflation hasn't affected very much yet depending on where you are from. If you are from the US somehow it's affecting major cities already which it's in the news how high gas is. If regular people only see this coming, they could have prevented spending a lot to waste. Expenses in the remote areas aren't very much affected as local producers are increasing prices but only shrink their products except bread prices, it's expected to go high. Is a good thing that kids' classes today are online because if it's not, the higher the cost of living will be.

We all cut expenses already especially because I can scare myself so I won't go out there preventing covid infection.

Each year inflation keep on rising and as a human we don't have any other choice to do than to deal with it and the thought of cutting expenses were one of the way to cope up with the constant rising of inflation. But sometimes cutting expenses is not applicable especially if the primary commodity of a family has the highest amount expenses monthly like the food. Due to inflation the portion for savings and investment has been cut also to meet the primary needs of a person.

Well I save in various types of assets. like stocks. deposits and properties and only use the money for personal and entertainment needs. and not interested in expensive goods. so I think inflation doesn't really affect me that much at the moment. and I think the most important thing to deal with inflation is to choose a savings instrument that keeps the value the same. may have an impact on people who do not do so .

So far, my cost does not yet increase significantly and I can still control my monthly expenses and do not have a problem with that. But I prepare to reduce some things that I think are not too necessary to my family so I think I can save a couple of dollars that I can use as a reserve if I need urgent money.

On a monthly, I try to save at least $50 in my saving and my crypto investment so just in case, I can sell some if I need more money to cover my bills or the other expenses. It is hard to admit, but we can only prepare ourselves if the cost rises because the government adjusted some products.

There are certain things that are important and not to be looked away from. If cutting down expenses is to take away the concern of our primary health, it means we have more bigger troubles in our hands. We open our health to infestions if we don't take precautions about them and the result is the payment of high hospital bill to treat ourselves and by then we still in same place or have lost more to our health. Therefore cutting down should not make us susceptible to health bad practices that will endanger our lives.

Inflation started to eat our saving that is the actual reality in most part of the world, from food items to expensive luxury things the price hiked over 10% in this year and its expected to increase further in my opinion but I guess there will be a shock in the demand and supply for sure in the near future which makes the things more difficult so be prepared to face it.

Due to inflation, I need to save more than I consume since the price of goods and services is gradually increasing in which the purchasing power of our money is decreasing as well. Inflation affects all aspects of our life which is why it's much better to invest your money instead of saving it and placing it in the bank. Interest rates offered by the bank are not really worth it compare to the profit it could yield when you invest which basically doubles the amount of your money.

The way to deal with inflation that we can do is invest. There are several capital market instruments that can be used as investment options.

One of the most popular capital market instruments as an investment option is stocks.

Stocks provide benefits that come from dividends and capital gains. Dividends are profits that the company distributes to investors that come from company profits. Meanwhile, capital gain is the profit from the difference between the purchase price and the selling price.

Agree that you are spending far more money than you were previously. Almost all of the products cost twice as much. But when we talk about inflation, the first thing that comes to mind is those who are less fortunate. I am in a better position now than I was before, but I can really relate to how difficult it is now that prices are higher and it is difficult to find money. I know there are a lot of people these days who can barely eat three times a day, so I don't save much, but I do help people in need as much as I can.

I don't think that inflation has affected any of my savings or investment yet, wouldn't be worried too much about that one, pretty sure that I won't feel any of that because my investments and savings aren't in fiat.

Usually in home i who cut down my expenses. Because this time, my income really affected not only by inflation but pandemic too. But i think not only me who face this and in this world there are more people who suffer too. That is why i keep grateful as long i still can save money for future, daily needs for me and my mother although not much spend in outside or do hang out or anything like that. To get entertainment i usually only play mobile or pc games.

Since I live in a country with inflation, I have already learned to deal with it. I live in Venezuela and I don't have money in my bank account until I need to pay my bills, that happens every week. I deposit some money and do my expenses and repeat the cycle.

This technique made me show that I can save, invest and pay everything I need and of course believe in bitcoin and cryptocurrencies to get out of an economic crisis. In addition to having plans for the future with my investments.

I have not had a pay increase in 3 years, so the inflation has gradually caused me to cut back on luxuries and entertainment expenses that I had 3 years ago.. just to keep the pot cooking. If I was living on the interest on my saving, then I would have struggled.... because the increase in inflation was much higher than the interest that I received on my saving.  >:(

One thing that I decided to do, when the Bitcoin price skyrocketed..was to sell a few coins to pay all my debt... if it was not for that, I would have had to dive into my savings to survive.  :(

It is a marvel that you managed to not have increasing costs of living. Here where I live, we had %66 increase in rent on average, thankfully I own my house so I didn't had any problems but that is just shelter, one of the most basic needs in the world. The food prices increased around 21% as well. So, I am spending a lot more than what I did just year, and if we were to look at few years ago then I am spending A LOT more than what I did few years ago.

I was making nearly 1/10th of what I am making now back in 2016 and I was still capable of living, think about it, I am making 10x more than what I made 5 years ago, and I have the same living standards. That is the type of situation I am in and this of course affected by investment in the sense that no matter what I do there is nothing that could make me save since it is very expensive.

This is a lesson to ponder dude. Things have become worst this time not just due to high inflation alone but also for the pandemic that we are currently facing right now. So its best to stay out from any luxurious or lets say unnecessary expenses so you can put more on your savings and investments at the same time. Learn to balance it all. But just a piece of advice, never put your basic needs at stake or your last option. It will always comes first. Because if its the time your body will start to give up, then all your goals in life will definitely collapse.

Diversifying is indeed a must for us to stat away for big inflations, if we keep saving in bank and in fiat all our savings will lose value. It’s good that crypto exist and that there are more option now where to invest not just in stock,real estates and etc. we can see where we can be best in investing. We can’t stop inflation but we can find ways to minimize it by taking advantage on the benefits of investing that is able to mulitiply or increase our assets if were good in analyzing the market.

I still need to learn to manage my money because I feel that I can reduce it for more. My cost in monthly increase but not too significant, which is why I can see that this year, the cost seems not to increase too much and tend to be stable. Since last year, I have tried to delist something that I do not really need such as buying food in the food store. I prefer to cook by myself to reduce the cost. The gas cost reduces a lot in my finances list because I do not go out too often so I can save that money for other things.

It will not be a problem if you still have the same living standards, no matter if you have money or not have much money. We need to be concerned about how we can eat every day and how we can live because that is the primary need that we need to fill. The rest will be secondary needs that we can delist that we do not really need. You can try it and I guess you will see that you actually have more money to savings.

In my case, well, where I live, I have started to notice a bit of inflation, in some things more than others, but it has coincided with being promoted at work, with a considerable salary increase. So, I think that despite inflation I will be able to save and invest more.

As I and others have commented in other threads, the best way to deal with inflation is to have financial assets. I have been cultivating financial assets for some time now, and I will continue to do so.

It was the occurrence of inflation that brought me to this forum. My worry about inflation is not because of rising prices, but because of panic about the devaluation of my assets. For small countries, the stability of legal currency is far less than that of superpowers. My friend suggested that I choose an investment goal that can beat inflation, and I learned that Bitcoin is here. Now, I have invested a part of the investment amount in Bitcoin investment, maybe as I understand, I may invest in other cryptocurrencies.

Inflation hasn't really affected me directly, I've mostly noticed it in the supermarket and in fuel. It's quite irritating, the same 6 pack of water bottles costed 1.40€ or 1.50€ a year ago, was now bought at 1.68€. Simple everyday shopping has gone up, I've got plenty of examples to present.

On terms of investing now, I'm not directly affected due to me refraining from using my own salary for investments. I prefer DeFi and not trading anymore. Personally, I use signature campaign earnings and cryptocurrency for investing.

Do you guys ever get worried though? I mean yes I have been doing fine for myself recently but do you ever get worried that there is a chance the prices will keep on increasing like this, and one day you will not be able to pay them anymore?

I can't keep making more and more money forever, I have been ahead of the curve so far and I have been living a decent life, worst comes to worst I would just live a bit of a worse life and try to survive only and all of that looks like at least 5 years away as long as I have my current job. However after a while, if the prices keep increasing like this, and I can't keep making more money, that literally means my death.

Sure not death right away, and sure it would take a long time to reach there, but I would gradually become poorer and poorer and eventually I won't be able to afford my house, my food, my bills and one day I won't be able to afford much and would need help from government to even stay alive. That just doesn't sound like a nightmare but it looks like it is totally possible if the inflation keeps increasing in my nation.

Inflation does affect people's savings. Many countries in the world have experienced inflationary economic problems. When inflation occurs the legal currency will depreciate and savings will decrease. At this time, the price of goods will also rise, so you have to spend more money to buy things. Consumer spending must be increased to meet daily needs. It is possible to protect funds from inflation by investing in Bitcoin.

Fuel prices are the main driver. Crude oil used to cost $40 per barrel a year ago, and now the prices have increased by almost 100% (today's prices for Brent Crude are $79 per barrel). There are several factors behind this, such as the production cuts from OPEC+, election of Biden as the president (he cancelled oil pipeline plans and banned fracking in federal lands), slowdown in the EV industry.etc. And no other commodity has an impact on retail inflation more than crude oil. When the crude oil prices go up, inflation rate also goes up (across all sectors).

If you are talking about Investment and saving then there are no chance that it will be totally affected of Inflation since all the funds stays intact (Of course we are talking about cryptocurrencies here right)?
not unless it is a fiat that you will need to withdraw when you felt like the value is dropping but when it comes to crypto?
the more the funds drops the more eager we wanted to invest.
if you care so much about the value , but if you input your funds in crypto ? inflation is nothing fore sure.

This is a fallacy. If you don't have a job without going out, how can you save money if your income is reduced? If you don’t go out, you only have expenditures and no income. It’s like Vietnam and Thailand. They have to resume work because they have no food. There is one thing their buzzword: live with the virus.

Yes. Investing into bitcoin might be a good option to divert inflation into deflation rather. And especially in this time of pandemic, where the people have almost lost their jobs so its hard to earn a living, and yet the prices of common commodities are much affected with this high surging inflation.

I myself has been affected with this, i guess everyone else, so i have to keep my expenses tight so i can still cater to all my necessities in life. My savings and investments finances were affected so what i did now is eliminate all the unnecessary expenses and focus on bitcoin which i think will definitely give me the huge profits when the price is at its peak. And once i start making profits, that's the time i have to diversify my investments to maximize my profits as much as possible.

It must be the month of December before inflation will happen. The current increase in the price of goods in recent time is still as a result of COVID-19 pandemic and nothing else and it may last till like next year before things will normalize.

For me,,, very badly but not in the way I expected.

Most people think inflation means they save even more,,, or put it in even higher yield programs like insurance mutual funds are so popular now compared to bank schemes. I still choose banks but only using government backed long term funds.

But the fact is inflation is growing faster than interest so I am saving less and less,,, and investing more and more in Bitcoin and pension funds.

Inflation is something that we can’t escape, because it will happen anymore without warning. But of course, we always have to be ready in managing our finances very well and always learn to diversify.

And yes I’ve minimized my spending on unnecessary expenses (except mandatory ones such as monthly bills, essential goods, etc.) and investing more on assets (but with DYOR of course).

For the past years, inflation is already a thing and it is normal to occur in a country's economy. There is a certain level of an inflation rate that isn't really much felt by the citizens. However, last year and this year, inflation hits differently. It's much more evident, felt, and seen by the consumers. Adding the fact that we are in the middle of a pandemic makes it much worse. The cost of products and services offered is higher compared to before because there is a higher inflation rate recorded that isn't normal if statistics will be the basis. Here in our country, if before, the average amount you have to spend is 300 bucks to feed a family of 5, now it would not be enough. The prices of goods are just so damn high, particularly the meat and vegetables. Transportation issues and low supply of goods make the prices go higher and higher to the point the commoners can barely afford a decent meal. Transportation fees increased too because of social distancing protocols that made the public utility vehicles limit their seating capacity to half. Electricity and water consumption got higher too because the family members are spending most of the time at home, making the bill higher.

It's really a challenge to get by and survive most especially to the working classes who are just making the ends meet and are living paycheck to paycheck basis. Personally, there are some expenses that had been cut down since the pandemic started such as the school allowance which is a breather because it was allocated elsewhere to address our necessities. Personal savings isn't much affected, fortunately, but still can't deny the fact that there are still times I have a hard time on it too. There are bad days and good days after all. Hopefully, we'll experience more of the latter than the former.

Gladly i am not really affected by it although pandemic attack my country too. My company still opening although sometimes we're work from home and i know how other people suffer, beside spend for daily living and saving it, i can help others around me although it is not much. For now what people need is help from another and not only people who show their wealth to others who suffer.

Inflation has ravaged several nations as a result of the Covid-19 outbreak, and since other countries have reopened, it has been on the rise because to rising demand and supply. During the lockdown, the US, for example, went brrrr with about 1 trillion dollars in circulation in just 8 months, and other countries adopted their system. Fortunately, the US was able to preserve transitory inflation of 5%, but those who copied their techniques are suffering from hyperinflation. My country's purchasing power is currently at 17%, implying that the currency's value has dropped by 17%, effectively killing civilians without a raise in the minimum wage.

The best strategy to fight inflation and to avoid depreciation of your savings is to invest in Top 10 crypto coins which are anti-inflationary and in deed Bitcoin comes on Top of them. Having said that the 2nd best option is to invest in stocks and Real Estate because historically both have given return to investors which is certainly more than inflation. There is another way to fight inflation which is reduce consumption of energy by using Solar system for your homes to reduce your electric bill as well as switch to Electric car to cut down your fuel expenses. 

Inflation is so high that even your savings are reduced that you can't get anything worthing it in the market. The cost of goods have been affected and you see even your salary goods for buying monthly needs and just like that in turns every month. In the past, you could save some money from salary but not that old ways anymore because cost of products have gone up and you have to buy to survive. You can't talk of savings now if you don't have multiple income. Some products have increased 100% in two years while salary is still same amount with no increase, so how is savings possible in such situation.

In which sector are you working? During the last 4-5 years, salaries in white collar sector has increased by 8% to 10% on average (per year, in USD terms), although the pandemic has once again caused a downturn since 2020. For the blue collar jobs, the increase has been even more noticeable. If your salary hasn't increased that much, then you are missing out on the opportunities. Take my advice and change your job. No matter whatever work conditions your current employer is offering, low salary makes them worthless.

Personally I think it’s best to cut down on expenses, so that you can be able to maintain your savings and investments. If you continue with heavy expenses at this time it's really going to affect you in the future. Then another thing we have to know is that it’s not just all about savings and making little investments, yes investments can help you but you also need to work on having a good job or a really good source of income that can carry you at this point in time.

If you are working and you feel maybe the payment you are being made is not enough for you, then it’s not bad to ask for an increase Or even get a better job than the one you are doing. So there’s just a lot to this than just cutting down expenses.

Now imagine the same thing that was worth 44 now worths 95. That is some nations are living right now, for example I just lived in today so I can give this example, something that worth 68 just few months ago, worths 82 today, which is a huge difference when you think about it for a few months. I agree it hasn't been increasing for a while, for like 2 years or so it was around 60-70 levels so it was bound to go up one day but suddenly it went to 80+, I was expecting more like 72 at the very best.

Hence, inflation impacts hundreds of millions of people around the world every year, some nations like yours doesn't have something huge like this, but there are at least 10-20 nations that have it horrible and combined population numbers of those nations makes up for 200-300+ million people.

Inflation has been one strategy used to control importation and exportation of goods by the government in recent times and even happens more in my nation but the surprising thing is, it haven't changed much as to individual lifestyles. For me,  I remained almost indifferent of the situation. I still live my normal life, save and invest when opportune or what to and life keep going on. Its the make fir most persons too and it make you wonder. People still go on vacations, shop for expensive or luxurious things and more.

Some of the persons these inflation actually affects the most are those below the middle class but them too have learnt how to survive too. I was talking with someone some time ago and the person actually gave me an insight i failed to consider from the local traders. Not forex or crypto, I mean the rural vegetable and related stuff traders.
Normally, you look at the farm produce and feel it should be cheap since, They didn't use much resource in its growth but then, you fail to look at the fact that, though we have money, there is still a barter system in place. That these traders needs this money to buy other commodities,. Commodities that these inflation have affected and to meet up with the price demand, they ought to infalt the price on there farm produce too. It's the way it is and we continue to coexist just fine with the inflation.

So far the effects on my finances of the inflation that is going on has been minimal, however I have noticed the price of certain products that have gone up significantly especially if you have to import it from another country, still I know there is a chance this will get worse in the future and I am preparing for it by saving all the money I can and then I invest it in bitcoin, after all it would be a huge mistake to try to solve your problems with inflation by saving in a currency that could be printed to oblivion.

In the case of rampant inflation which is where I live, the word "Savings" does not exist for the middle class, what they most seek is to be able to survive the system that is imposed, where without exaggerating people what they are looking for is to be able to survive, and this includes the constant search for the most basic items.

The work is over because there is no industrialization, what people do are activities that can generate a lot of money with a lot of effort, some have appealed to playing NFT games to see better results, and every time there is an emerging option, they do not hesitate to take it . The constant search for a better life includes leaving the country, but doing so is worse because most of those who leave are illegally because passports turn out to be very expensive, and everything causes a much bigger problem. Inflation where I am really cannot be fought with the normal solutions of any country, this leads to the conclusion that the effect of inflation destroyed any possible particular solution for people, in this case inflation did destroy all signs of a good economy and opportunities.

I think your country's government should offer you help or the other people especially in this pandemic when people are almost suffering from the cost of living. I've seen some people that couldn't afford to pay their bills anymore especially to those who rented an apartment but couldn't get to work because of the lockdown. Lucky for you, because you will be able to work from home despite the fact that most people can't get to work due to pandemic.

Inflation is really hurting some people's pocket especially the cost of the food that's why I've said it before that we should have to build our own garden of vegetables in order to avoid paying too much for the food when buying in the market.

The inflation is not only affecting savings and investment, it has also affected already saved money. Some countries fiat is lossing value on daily bases. And people that have saved when such monies had value are running on losses now. What your saved money could get you 1yr ago, you will be needing double of such money to get it now. And saving does not multiply.
With the present reality, I think savings is no longer a good option. Rather investment with short-term returns should be considered.

For me, it's still a good option to save some of your money not mainly for the future of your family but more on the circumstances that will just suddenly occur. It will somehow bring relief if you always have your cash on hand. But i admit, i am also affected with this rising inflation but not that much. I have learned even before to save more by not spending on the things that are not important and focus on the basic needs. And for my investments, i never invest more than what i can afford to lose and as much as possible, i play safe most of the time. Although i'm not really into huge profits but that's fine as long as i'm gaining profits in a small way consistently.

As I grew up, inflation is always present. It is hard to earn, save, invest and maintain our standard way of living at the same time. So to be able to make everything still in balance, I am always trying to sustain my full time and part time job(s). With that, I may use my salary in my full time job to buy our everyday expenses, then my profit from part time in saving. But of course it will not always go in an easy way so there are times that I need to adjust my savings just for our living.

Not everytime, if the expenses aren't needs then you don't take care of those first, you have to cut down on those expenses that are just wants and invest more. I guess that's what the OP is trying to ask.


It has been the other way round, expenses has been cut them and I'm beginning to see the positive side of it. I walk more often now instead of driving and consuming fuel. Public transportation has also been embrace meanwhile I wasn't a fan of that before. Still though I haven't allocated more to investing instead I have been saving but not in my local currency. I have been doing that in foreign currency so technically you can say I'm investing because there's a 90% guarantee of me having a nice ROI on my savings when trading back to local currency.

Why would only go for one option if you could have both? You can have savings at the same time you could have investment so that you wont really be bothering yourself in regards into this issue of inflation.

This is an inevitable thing but what matter most here is that you do able to know on how to sustain yourself on the way on making out investment.Inflation is there but doesnt mean that it is

really giving out that big impact and to think that there is still lots of various ways on saving up your ass.

In terms of savings, it has definitely made it slower.

Groceries & prices in generally have crept up over the past few years that has stymied savings progress, whilst wage growth hasn't seen the same growth.

In terms of investing, it might have actually helped. Most of my portfolio is in stocks and cryptos which generally positively associate with inflation.

I guess if you perceive inflation more on a negative way, then you might only end up nothing to lose and nothing to gain in the future. Its like you let yourself being in controlled with the inflation when in fact there are various ways to combat them so that you will not be directly affected. Just continue of what you are used to do like saving and investing because in the long run, nothing else will matter but only the profits that you will be able to gain from your investments. The rising inflation will never stop so never stop too saving and investing as much as you can because you might end up having financial stability in the future and you will never have to deal with this never ending inflation.

I think one of the major reason is economic slow down during the past years which has impacted all businesses worldwide and as a result reduced the income of families. How people can making savings when they have not enough income to run their daily life. There is another reason which has pushed up cost of everything and that is the cost of transportation which has jumped many folds when countries started opening up after corvid-19 vaccination.

This is the reason why I only do investing from now on and I don't have any plans doing some saving especially with fiat knowing that the rate of inflation in my country is just continuously going up at a really fast rate, investing saved a huge portion of my money.

Positive investment advantages definitely belong to traditional investors before the global inflation event occurred, due to the entry of a new force,
those are people whose income criterion is affected by inflation, and their currency depreciates heavily while daily consumptions suddenly increase sharply, they need a cupboard to store their results as well as be able to exploit a little more unexpected results such as stock indexes. That transforms the market into more optimistic and those who sharpen their consciousness early will inherit a more growth-filled environment

That is what is so pernicious about inflation, it may not seem like a big deal to pay 18 cents or 28 cents more for the same product but that is an increase of 12% to 20% in a single product and if you see these kind of increases in all products then suddenly you buy a lot less, also something that companies do all the time is that instead of raising their prices as they know people do not like this is that they lower the quality of the product itself or they give you less of it.

True, I noticed that the quality of products these days have been affected, and that all those nutritional information on the packaging of products, now more than ever are not 100% true, some are just written in adequate percentages for show, in reality these companies have reduced the quantity of these nutrients they use because they are being affected by inflation and have to meet up. To show that companies have really been affected to agree to your comment, i have also noticed not just a reduction in quality, but also in the quantity of products.

It has decreased my savings and I'm more leaning to have more types of investments, inside and outside crypto. I have to be flexible as I'm thinking about my retirement and when I'm retired, I still have to deal with inflation without any worry.
The essence of diversification including the outside crypto investments is very effective for this purpose. You'll have eggs in many baskets that will help you deal against inflation and price increase for commodities.

Saving in fiat has always been a bad business but this is not something people understand because they lack historical perspective, if we see what it took you to buy something one hundreds years ago you can easily see why saving is a waste of time as most likely 99% of the purchasing power of the currency would have been lost, so we need to put our wealth in hard assets that can resits that inflation, it does not matter if you invest in gold, real estate or bitcoin, as long as you avoid having huge amounts of fiat then you will do well in the future.

But not all would really be having that kind of mindset or does really have knowledge but its impossible for someone who does have lots of money or businessman wont really be aware about inflaction.

This is something turns out to be a default thing and i agree into your sentiment that it is better to invest out your money on several investments like gold or something traditional including crypto.

On this way you could really save up yourself in risk of inflation which this is something inevitable.

For sure.

In my country inflation has exceeded target for the past month and the central bank is doing absolutely nothing.

It's a bit ridiculous. Groceries and petrol are clearly increasing in price week on week yet the central bank is still pump stimulus after stimulus as if their end goal is to debase the currency to the best extent possible. Diversify your assets out of fiat, please.

People don't understand it, but they aren't totally wrong on their goals, because at least those who save in fiat are aiming a long run passive income. They just don't use, as you said, the correct assets to achieve this income and that is where most of them fail, as when they see it's taking too long to accomplish what they have been looking for so many years of hard work they lose hopes, resign and stop trying.

And then we have a population unable to thrive and build wealthy during their lifetime. Even worse is that it's the legacy they pass to the next generations.

I witnessed the 2008 economic crisis, it was really a nightmare for the global economy. Inflation is so high that the prices of everyday items are skyrocketing, it really has a lot of serious consequences, but from a more positive perspective I think it's just a balancing act. Maybe we won't have to wait too long for this to happen, given the current global situation.

True, you will not feel it until a few years have passed and I have been hearing statements like inflation increasing every now and then, in reality it is, but the buzz created to make it seem like a problem seems to be more. On an average, in the last few years prices of things that are in daily need have increased but people cant have any alternative to take except pay for them.

Fiat based investments will face the wrath of inflation too. That does not mean that bitcoin is beyond that, you end up having to convert bitcoin to fiat if the former is not yet accepted in your country.

Cutting down expenses is a good thing - not just for the pandemic but in general. Some spending is necessary to survive, other than that, you should spend money that goes with the amount you are earning - balancing that is the key.

However I would not say that rise in prices would make me reconsider my investments. Those are based on different other logical explanations. Neither does that mean that one should convert everything to crypto because that is a stupid thing to do (all eggs in one basket) and also what I said above about conversion.

I have noticed as well and this has been going on since the last world economic crisis that happened in 2007, I know it sounds like a cliche but things are not made in the same way they were made before, now all the stuff you can buy is some cheap junk that breaks at the first opportunity, while stuff that was made decades ago is still working because those products were made to last and even if you abuse the product you can always restore it and it works as if it was new, something really difficult to do with the technology that is being produced today.

Well.. this is strange. But you can't generalize everything. I am using my laptop from Dell for the last 6 years, and so far I haven't faced any issues. The same can be said about refrigerators, washing machines.etc. In fact the refrigerator which I am using is at least 10 years old. But if you are talking about mobile phones, TVs.etc, then I have to agree. The LED TVs don't last for more than 4-5 years. On the other hand, the old CRT televisions used to last 20-25 years without any major issue. But then you need to chose between quality and durability.

Inflation is very influential on the economy, I work with a salary of around $450 per month and have almost 3 years of salary increases below inflation so it makes a lot of things that I can't fulfill, to save is very difficult and I only rely on a few unproductive investments so my hope is right now is investing in cryptocurrencies.

Well for me, since I quite earn enough to make a living. I make sure that I don't touch whatsoever that I currently have invested, and my savings are still the same. I set my own budgeting in which I follow a rule 60-20-20, 60 % will go directly to my Expenses (Bills, Groceries, and etc.) 20% savings and 20% Investments/Wants. I may sometimes have a 10-10 split on my investments and when I sometimes want to buy somethings and etc. So yeah, my key to this somehow crisis is that I make sure that every penny is accounted for. I avoided, impulsive buying or spending too much on going out. I'm an extrovert guy, but I'd always set myself to spend this only for a certain let's say gatherings. It's not that I'm cheap, more on I want money to grow. I have plans, this is somehow a sacrifice for others but yeah I know this would benefit not only me but also my family.

That is the case with most of the countries, even in developed nations. The salary increase is in the 4%-5% range for most of the people and it may be below the inflation rate. If you are in the top 10% in performance, then you may end up with 10%-12% increment per year. In order to improve your living standards, you need to change your job once every 3-4 years. The new job on average may pay you 25% to 30% more (I am talking about employees with >5 years of experience, and not about the starting level employees).

Many factors affect our income and expenses, and the biggest factor influencing is inflation. If inflation is not under control then we can be sure that we will experience many financial problems, the presence of investment is certainly to be able to offset inflation so that we can survive and increase our assets.

Inflation always happens and can't be avoided, actually inflation is good for making people more creative and increasing their income, but for many people of course inflation is a disaster because it makes prices more expensive and unaffordable, to overcome inflation the easiest thing I can do is invest in several posts and currently the largest portion is in cryptocurrencies.

I have a Dell Alienware laptop, 17 R4 , if you know about laptops then you will know how decent this laptop is, I am not going to say great because obviously there are better ones, but this was amazing, especially considering I bought it nearly 4.5 years ago (January 2017). Ever since I bought it, it had its plug broken, so they brought me new cable, then keyboard started to get lose and broken and not even just one case, it was 3-4 and then they came in and said it was a production error, shouldn't be getting this many this quickly and that was like first year.

I also got the battery swollen like crazy, which damaged the case as well, the empty space under the numbers is now swollen because of it, I got my warranty over after third year ended so I had to open it myself and took the battery out myself. Now I can only work if I plug it somewhere because it doesn't have a battery. It has so many software errors that I had to do a reset to default 3 times so far, and I am not someone that downloads too many things neither, I work as a content writer so my pc barely has anything, maybe few games from steam.

Moreover, these days the CPU gets hot, sometimes as hot as 90c and that should close the PC, instead it continues thankfully and I have to reapply the thermal paste on it. This is a 4.5 year PC that I paid top market price at the time, think of all the bad ones and how terrible they could be.

Therefore,  it is just sensible that we should really find off ways on making investment so that we would able to patch up in regarding with that inflation issue.We are already aware with this thing
and thats why some people do really tend to engage with investment so that they could make theirselves sustainable apart from the money or income that they do gain from their day job
they could also make out profits in various sources too.Its up to someone on how they would handle out their investments.

Inflation is really a problem for the economy of some countries, it can even be said that most of the countries in the world are facing this problem. But reducing costs is not enough. must be a good choice at this point in time as the demand will continue to exist. And the thing that saddens me the most is that I myself need to increase my budget for my daily needs in order to be able to maintain it. the living expenses my family needs, my savings have been really affected by very high inflation so no matter what return I get from my investments. I hope that the problem will be solved and my life will be better in the future.

This is exactly why I moved to freelancing. There are two options of making more money in the freelancing world, either you charge more and earn more if you can find someone to work with, or you end up getting another job on top of your current job and start working two jobs which will pay you significantly more.

This doesn't mean that you will be capable of working like that forever, eventually one day your job could be over but that doesn't change the fact that it is certainly giving you a lot more freedom to earn as much as you can, instead of what your boss may feel like you should earn. I work for one place now and have another that I sometimes do and sometimes don't depending on how much money I need, and that wasn't an option when I worked, there was a salary and there were increases yearly and that's it, I couldn't decide how much I earned, which is why freelancing beats working for someone in my mind.

I am someone who has been doing freelancing for well over a decade. But doing so is not easy in my country (India). Here, receiving payments from abroad is not 100% legal. As per the existing laws, in order to work for a foreign employer and to receive payments from abroad, you need to apply for half a dozen licenses (which is not practical given the red tape in India). Most of the freelancers usually ignore these restrictions. The majority were receiving payments through PayPal earlier. Then a few years ago the government noticed this and asked PayPal to close down it's operations in India. Because of this, the freelancers have shifted to Bitcoin (still the legality issue remains). 

Happening in my country too... the cost of living is going up like crazy, many stuff is over 100% higher than at the same time last year... my paycheck is the same as it was 4 years ago! So I think it's simple math, things are uncontrollable!

Luckily we have crypto, and as some other guys said already, I am trying to keep my crypto investments safe, which means not touch them as long as I can! I can remember selling Bitcoins for $200, and look where Bitcoin is now?! So crypto is a savior in my case, my old holdings, and my investments make me feel safe in these troubled times!

Well it is true that to some extent inflation cannot be avoided, even gold which was the standard for a long time had inflation as its supply went up due to the gold that was mined during the year, however the issue comes when inflation is too high but still under control or when the inflation is obviously out of control, right now we are in the first scenario, the inflation is high and most likely will remain there for some years, but if something else were to happen I doubt we can remain in this scenario for long and that is when inflation could get completely out of control.

Talking about saving and our income from a job is very closely related. However, we should all agree that the income generated based on projects or freelancing is much greater than working in office hours. Moreover, talking about inflation that haunts all lines, especially for workers who work 8 hours of work. They receive wage increases that are not even able to cover the level of inflation or at least equal inflation. And this often happens in my country.

this is not entirely true but not completely wrong either.
it is true that at least by having a minimum investment we can take into account and defend our future to avoid this.
but again inflation can occur at any time as long as the economy is not controlled and if inflation has occurred in a severe stage, investment will not be too guarantee even though it can still last a long time. at least people who invest will be a little calmer than people who do nothing.

In the case of my country it is very easy to detect, because there is simply no saving, when inflation occurs, only people dedicate themselves to satisfying their basic needs such as maintaining themselves with their food, services and medicine, everything changes when it is taken into account the savings in strong FIAT money, such as the dollar, some have physical gold and change in emergency measures.

Very few know the BTC, and those who start do not have enough confidence, however there are always ways out of it, inflation only begins to be fought with short and medium-term investments, this is the measure that many in my country are taking in mind and doing.

Direct costs of living, so housing prices and food prices are all increasing because of supply shortages.

The supply chain took a hit during Covid but there's always a lag in the inflation calculation as the market determines the price increase. And if you want to go further than that, despite having your income rise by 10x, you still had more purchasing power 5 years ago. Most centralize government banks will target inflation to be at 2 percent each year. Your country might have had higher inflation, so it could be worse. So, by design, you are losing 2+ percent of your spending power each year, even if it may not necessarily seem like the prices around you are increasing. The price increases are subtle, and by design.

There is no problem in surviving like this. But then your living standards will go down. As you suggest, the individual will be forced to cut down on his spending and look for cheaper alternatives. Then another question comes. For how long this will be sustainable? If the inflation rate remains high, and if the salary is not increasing, then this strategy won't work in the long term. What you are suggesting essentially is to run away from the problem rather than confronting it. Not a very good idea, IMO.

Consider the fact that one day you will need to sell that cryptocurrency for fiat assuming that your country does not accept bitcoin yet, you would still be facing the same inflation. Have you given that a thought?

What I said in my previous post, inflation comes back to haunt you as soon as you have to change from crypto to fiat, because the second one is the place where inflation is there. But if there was a method to directly buy/sell goods with bitcoin, things may have been different.

Your investments are also subject to inflation. Your stored gold will deprecate with time because the fiat value for that will decrease. However to reduce it by a major amount might take some decades, so it should work out during your lifetime.

So honestly speaking, there is no way to escape inflation like that if you are having to face the fiat economy at any point. A bitcoin based economy is far from its inception and so inflation is here to stay.

For me the biggest pressure on spending came from the corona crisis. I was very scared in the beginning to lose my job and be unable to pay back my loans. The first step was to not go on vacation anymore. Both this and last year I was away less than 10 days in total and usually only visiting family for 1-2 days. The inflation just made everything worse. Inflation rates of above 2% make saving useless because interest rates are so low. At the beginning of corona I had around 50% in short term high liquidity assets to be able to cover any income losses. But now with the end of the corona crisis insight I am trying to invest 90% of my money. What I bought in the last 6 months to escape inflation was crypto currencies, stock index funds and a real estate fund.

If the crypto investment we make is going up faster than inflation then we do not have to worry about inflation at all. Consider this (numbers are just examples, do not take them face value) let's say you start working for the first time in your life this year.

Your first job ever is 1000 dollars, after your first year, the inflation is 2%, which means you should be getting 1020 next year right? Well what if you get 1010 instead? That means you are paid less, or let's assume that you put 10% of your salary to crypto each money, you would have 1200 dollars total right? What if bitcoin went up 2x that year?

You would have 2400 but of course it won't be in the last second so let's average it and say 1800 dollars. That means you would have 10 dollars less each month than what you should be getting because your salary was under inflation, but you would have 600 dollars total which is 50 bucks per month that makes you earning more than inflation. This is just an example, you can change the numbers anyway you like to see the point.

This is a good option to do, because sometimes we are not aware of this, that there are still many people who use luxury standards to buy things.
but things like this have to start now. As long as the product you buy is the same, why not use a cheaper one, because the most important thing is the use, right?
From now on, I think I must pay attention to the needs and desires. because often people including me buy things that are not really important needs just because they want to get the goods, this should be reduced as well.

We also need to take into account that inflation is not even, and while a 2% inflation per year is the goal that does not necessarily mean we see this over all industries, the things that people demand more and which are basic necessities are the ones that increase the most as the demand for them is always high and as such that inflation number could still be very deceiving, and now that the inflation is higher than that it is not surprising that we are seeing this being even more notorious than in the past.

Affected the savings and investing,if someone cannot manage to controlled her/his self for increasing there demands and needed.Can you control if less/decreas your things to buy,and important items only to spend your money,so that will not affected your saving buy something if its necessesary,and in investing those things needs to supply than a lot of supply but less demands of the people.

This is a good point - From what I'm seeing, there are supply chain issues effecting computer chips which are causing issues with a lot of vehicles to sit in lots because manufacturers are waiting on these chips. Used car markets as a result see an increase in price, upwards of 20 percent. Doesn't necessarily effect anyone that isn't looking for a used car. Energy and food are the two major industries I'm looking at though, and there are no signs that supply chains will recover, so inflation is here to stay across all industries.