How to save money and beat up inflation rate? Options please!

[NavI_027]

In order to save money  I am using the economics formula that I learned from my highschool teacher and the formula is " salary - savings = expenses ". I actually find it effective in saving money for years. But this saving has nothing to do to beat the inflation I think. We cannot control the inflation. Maybe we can beat inflation in a little way if we buy more goods before its price increases.

For a minute I was thinking and trying to understand what Op meant by saving money to beat inflation rate and your post seem to be the one pointing to that as some thing not realizable. Inflation rate won't be beaten by saving up money by just an individual. Government is the one that can beat or control inflation rate by policies of trying to reduce money in circulation by at least introducing higher interest rate to discourage borrowing in the system which means inflow of cash will reduce.

Yeah, you can't beat inflation. All you can do is to surf with it. Maybe what OP mean is that how to save money effectively until you no longer feel the inflation rate. That thing makes more sense now lol . A sort of ways on how to become rich (by means of saving of course) until the price hike of goods/services will nof bothered you anymore.

Hmm, if I'm right on that one then I think saving alone won't work. Having a stable job alone won't work either. I realized that we should not save money just for the sake of saving, save money so that we can invest on the future. For me Work > Save > Business is the key to not feel the inflation rate.

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[shoreno]

In order to save money  I am using the economics formula that I learned from my highschool teacher and the formula is " salary - savings = expenses ". I actually find it effective in saving money for years. But this saving has nothing to do to beat the inflation I think. We cannot control the inflation. Maybe we can beat inflation in a little way if we buy more goods before its price increases.

salary - ( minus ) savings = expenses  .  is that is  ? i still find this confusing  but i like what you said on your last sentence  . my family has been doing it but only if there are special occasions or holiday ahead  .

they know that the products will become expensive during the day of that occasion so what they do is they buy early to save up as much as they can  .  there are indications on when to tell inflations will occur. all we need is to watch the news closely  .

[NavI_027]

[snip]

salary - ( minus ) savings = expenses  .  is that is  ? i still find this confusing 

I think what he is doing is that he is allocating a certain amount of money from his monthly salary for his savings. Then the rest will become his budget for all of his needs and wants. By doing so, he can have a secured fund in case of emergency or sudden expenses in the future. Which is opposite from the usual scenario wherein people spend then the excess money would become the savings. If you will analyze, it's a matter of priority. He prioritize his savings first then the one which will adjust is his expenses .

they know that the products will become expensive during the day of that occasion so what they do is they buy early to save up as much as they can  .  there are indications on when to tell inflations will occur. all we need is to watch the news closely  .

Good move! Buying goods off their season is cheaper due to the low demand. You can actually get big savings with the same quality of product. However, this is not always applicable for perishable goods tho.

[metenjean]

You can keep make value your money without inflation by saving in bitcoin or digital currency like USDT and gold, if you keep holding your money with cash or your local money will give bad impact for several years later with lower value after getting inflation cases, check by your self how much you can buy some thing if you have $100 in your wallet and let do it right now, is the same or not.

[wozzek23]

You can keep make value your money without inflation by saving in bitcoin or digital currency like USDT and gold, if you keep holding your money with cash or your local money will give bad impact for several years later with lower value after getting inflation cases, check by your self how much you can buy some thing if you have $100 in your wallet and let do it right now, is the same or not.

But even USD faces inflation because what you would buy with 5 USD 10 years ago you cannot buy the same item with 5 USD today right? So you keep your money in USDT for years and you are being killed by inflation slowly.

I do agree that in particular countries the fiat might loose it's value quicker than the USD but there is no currency that won't face the problem of inflation and there is only one way to fight the monster of inflation and that is to trade and if invest, then invest into long term vision rather than quick profits or faster profits because if you are able to identify the right choice for investment you can easily beat inflation for example someone who invested money into bitcoins 2 years ago would easily beat inflation, why? because his investment was worth it and paid way higher than inflation rate.

[Kasabus]

You can keep make value your money without inflation by saving in bitcoin or digital currency like USDT and gold, if you keep holding your money with cash or your local money will give bad impact for several years later with lower value after getting inflation cases, check by your self how much you can buy some thing if you have $100 in your wallet and let do it right now, is the same or not.

For me, we can start saving money through investing in bitcoin or even in gold too. Bitcoin may be quite risky as its price tends to change anytime but if we will just invest what we can afford to lose, then we can limit the risks. Investing in gold can give us more profits to save money too because as years goes by, it's value will definitely increase too.

[The Sceptical Chymist]

Since I have the idea in saving money through bitcoin, so probably this could be a better chance in getting away from this inflation rate as another option in saving money other than the insurance company or even banks (the traditional way of saving money). Banks and insurance company does only offer low interest of increase of the savings so I am not favorable to it.

I don't fully understand the insurance thing you described, probably because those things either don't exist or aren't popular in my country, but depositing money in a bank likely won't help you beat the effects of inflation--not when interest rates are near 0%.

And bitcoin?  If all you're trying to do is protect your purchasing power from inflation, the last thing you want to do is invest money in an asset that's extremely speculative and breathtakingly volatile.  So no, I don't think bitcoin should be employed for that purpose.  However, if you're looking to make a profit and can tolerate a high level of risk, buy all the bitcoin you can.  Just look at how well you would have made out had you bought it just two days ago--but bitcoin can drop just as fast and hard as it can go up, and nobody can predict when it's going to do either.

A lot of folks think keeping their wealth in the form of gold or silver helps protect it from inflation.  I don't know if that's really true or not, but metals are a lot less volatile than bitcoin and IMO are much less risky.  Good luck whatever you decide to do, and let's hope the inflation rate doesn't skyrocket.

[MCobian]

There are several ways to save money and beat up inflation, including investments in cryptocurrency, stocks, gold and real estate.
But I agree with you that investing in Bitcoin is the best way to save money and beat up inflation. Even if we are lucky with the
price of volatile Bitcoin, then the price of Bitcoin pump as it is today. Then the amount of money we have can increase.

[pokeronlinestatus]

Investments can beat inflation rate if you’re living on a place with a lower rate of inflation, but if there’s a hyperinflation then only the government can solve that problem. The government is working hard to keep the inflation rate lower, and make the rise slower. Saving is not enough especially on a banks, look for alternatives and learn how to invest money.

That is correct because either the inflation rate is low or your interest over your investment is higher than the inflation rate.

Inflation for someone new can be understood as the change of price for your daily needs increase with time but the value of your money remains same or increases comparatively slower.

It's a good question asked and actually the only way is you earn interest that compounds itself and becomes higher than the inflation rate or you just investment in a particular business or asset that you believe has the potential to overcome the inflation.

[CarnagexD]

Investments can beat inflation rate if you’re living on a place with a lower rate of inflation, but if there’s a hyperinflation then only the government can solve that problem. The government is working hard to keep the inflation rate lower, and make the rise slower. Saving is not enough especially on a banks, look for alternatives and learn how to invest money.

But we should not be dependent to our government when inflation occurs. So as much as possible, we need to invest in some businesses and cryptocurrency, although it is very risky, we need to accept our fate and and the reality towards the result of our investments. Proper manipulation requires patience and control so the the direction of your investment is towards success.

they know that the products will become expensive during the day of that occasion so what they do is they buy early to save up as much as they can  .  there are indications on when to tell inflations will occur. all we need is to watch the news closely  .

Sometimes, news is not enough to know when inflation will occur. We should know how to observe and deal with the market so that we have an idea when to buy our necessities as soon as we possible.

We should not wait for the news because once people watched those reports, demand will suddenly increase and you will be left behind.

Good move! Buying goods off their season is cheaper due to the low demand. You can actually get big savings with the same quality of product. However, this is not always applicable for perishable goods tho.

Some goods are not in demand when inflation occurs, some will stay in its price and some will have changes in price.

[Ozero]

Bitcoin appeared after the last global economic crisis in 2008, so many rightly believe that its appearance was the answer to this crisis so that people can protect their savings from inflation of conventional currencies.
If measures to combat the spread of coronavirus trigger a new economic crisis, then this will be a good opportunity to test the cryptocurrency as a financial instrument that will not be subject to inflation of the common national currencies of states.
We also hope at the same time that with a real threat of the onset of a global economic crisis, people will invest in cryptocurrency and this will significantly increase the demand for it and, as a result, the price of cryptocurrency will rise significantly.

[spy100]

you can't beat inflation the game is rigged in favor of the rich !

[DevilSlayer]

Investments can beat inflation rate if you’re living on a place with a lower rate of inflation, but if there’s a hyperinflation then only the government can solve that problem. The government is working hard to keep the inflation rate lower, and make the rise slower. Saving is not enough especially on a banks, look for alternatives and learn how to invest money.

That is correct because either the inflation rate is low or your interest over your investment is higher than the inflation rate.

Inflation for someone new can be understood as the change of price for your daily needs increase with time but the value of your money remains same or increases comparatively slower.

It's a good question asked and actually the only way is you earn interest that compounds itself and becomes higher than the inflation rate or you just investment in a particular business or asset that you believe has the potential to overcome the inflation.

Inflation are keep happening not only in local currency but also the strong currency like USD and EURO. There are people who ask how to beat inflation, actually the answer is simple and it is by investing it in different financial instruments like stocks, real-estate, bonds, commodities and of course cryptocurrencies. The reason why I do not save my cash in banks or just letting it inside my wallet is because its value will continue to decrease because of the inflation. By investing it in different financial vehicles, I cam beat inflation but I have proper risks management when I do investing in order to protect my capital.

[Janation]

However, I am little bit worried as what others had told that putting your money to bitcoin is risky.

That sums up everything you want your money to put into.

Bitcoin is volatile, it is risky to invest in it but that risks goes the same with other investments or assets. I don't think it will be able to give you good results when inflation strikes but if you will be looking at the price chart, if you invested days ago, you will be able to get some profit you can use. I guess before it happens, you should be able to invest while you can.

[mersal]

you can't beat inflation the game is rigged in favor of the rich !

You can if you know how it works, first of all you need to stop saving your money on bank accounts that is the biggest mistake for someone who wants to save their money.Just buy some assets and it will bring profits for you after years of holding that is how rich people tackle the inflation rate.

[spy100]

you can't beat inflation the game is rigged in favor of the rich !

You can if you know how it works, first of all you need to stop saving your money on bank accounts that is the biggest mistake for someone who wants to save their money.Just buy some assets and it will bring profits for you after years of holding that is how rich people tackle the inflation rate.

if you can hold does assets ...to hold everything has to go according to plan ... but in life nothing goes according to plan ...some problem will show up ...like your wife/girlfriend will cheat you , someone in your family will get sick,a pandemic or a war will start .... nothing goes according to plan ...in that moment you will understand what i wrote now .

[Ayiranorea]

you can't beat inflation the game is rigged in favor of the rich !

You can if you know how it works, first of all you need to stop saving your money on bank accounts that is the biggest mistake for someone who wants to save their money.Just buy some assets and it will bring profits for you after years of holding that is how rich people tackle the inflation rate.

if you can hold does assets ...to hold everything has to go according to plan ... but in life nothing goes according to plan ...some problem will show up ...like your wife/girlfriend will cheat you , someone in your family will get sick,a pandemic or a war will start .... nothing goes according to plan ...in that moment you will understand what i wrote now .

This isn't true, we can tackle inflation as in the above post. Everytime or most of the time we can stick to the plan and move forward. Problems are part of life, it'll come and we need to be strong enough to face and overcome the situation. As said everytime we can't live with a negative mind that wife/girlfriend will cheat, family member will get sick, pandemic will start. Just think of the moment, and unexpected pandemic has been attacking. For that people are making/looking for solutions and not ending their life themselves. Positive minds will always progress in any situation.

[BuNga_cute]

You can invest your money in various assets, such as Bitcoin, Gold, Stocks and Real Estate. Investing in assets will save your money from
inflation and can get big profits. Different if we save money in banks and insurance companies, our money can be used up because of inflation.
Because the amount of interest given by banks is very small. Now I choose to invest in Bitcoin, it proved my investment from 2015 to now
shows a positive thing. My wealth has increased.

[slapper]

Everything in this world involves risk. Nothing can ensure that your money will be safe even if it is contained in a most secure bank. In my country, Many banks bankrupted and many people lose all of their money. No insurance can protect them from these disasters. In my opinion, bitcoin is somehow better than other assets. You can easily maintain, control, and manipulate your bitcoin with a single button. The power is limitless. With great power comes great responsibility, no third party or authority helps you. You need to be responsible for your money. The more careful and dependent you are, the higher chance you can keep your money safe. That is why the decentralized system is trusted in many recent years.

Even though bitcoin is not as volatile as it was in the past, it can still easily beat the inflation rate without any doubt. Therefore, holding bitcoin (or ethereum cause I am favorable to this coin so much) will accumulate a huge amount of money in the future. If you are still scared of putting everything in one bucket, you can split your capital into parts so that you can reduce the risk involving

[teosanru]

I think you are playing this game the wrong way. Target with any investment is not to beat up inflation it's to create wealth over a longer term. Consider inflation is like a cost a cost which is unavoidable and all you have to focus is on greater returns that would automatically beat inflation.

Coming to the part on how to beat inflation. Inflation is like a minimum slab if you understand it.

People think of it in this way: For example if the inflation rate increases banks will automatically increase their interest rates which in turn would make you look banks are profitable but inflation is eating up your savings too.

What it actually is: Whenever there is an increase in Inflation banks increase their lending rates too. It's because banks also are profit making corporations who have to beat the lending rate. This way credit is available at a higher rate and almost all the corporations would now try to be more profitable because they have to beat the interest rate and maintain EPS too. So in short stocks are the best answer always. Go for bluechip companies which are established corporations carrying low risk.

So in short I would recommend you to go for blue-chip stocks if you are not willing to take risk and grow wealth at the same time.