Inflation is making a mess of my savings.

[Negotiation]

A negative effect of inflation on the economy is that the opportunity cost of cash decreases and people feel comfortable spending cash rather than saving it. Financial institutions suffer from a lack of savings and investment in the economy declines. Also due to inflation the standard of living of people with stagnant income comes down so people cannot save. Also, increasing the interest rate may not increase the deposits in the banks, but the common people will continue to save when the purchase of daily commodities becomes a little easier. In order to reduce inflation, the government can increase the amount of imports to increase the supply of goods to the market during times of inflation this may reduce inflationary pressure.

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[adaseb]

During periods of high inflation, its best not to keep all your money in a savings account. Sure your bank will pay you some yield but in reality, if you get 5% from the bank, the real inflation will be more like 10% and you will lose your buying power.

What is scary is that say they raise rates high enough to cause deflation. If it starts a recession then its not good because they will print more money to stimulate the economy and double digit inflation will be back. You need assets like stocks, real estate or... bitcoin.

[mindrust]

Inflation is really biting hard, and nobody is doing anything about it, should we all just go with what Tupac said, "that's just the way it is, things will never be the same".
A lot of person's have ascribed this global inflation to the crisis Rocking Ukraine and Russia,  a lot of person's have also said it's as a result of shortage of gas supply across Europe and other countries.
The whole story is not just clear, as to why inflation is biting so hard and IMF AND WORLD BANK are not doing anything about it and the people are just left to face their fate alone.
The prices of goods and services are constantly going astronomical high and there is no hope insight of this ugly situation coming to a halt.

The purchasing powers of citizens are getting weak and I don't understand if the consumer protection laws are even effective anymore this days.
You buy something for a certain amount today, in the next one week, that same item you bought  has charged Prince without any reason.
How are you guys pulling it through with this inflation?

Your savings is creating a mess because you are probably investing in the wrong assets. What are you saving? FIAT in bank account? Of course it is going to fail in an inflationary environment. You should buy hard assets and commodities like stocks (commodities and consumer defensive) , gold, rice, toilet paper, bitcoin, olive oil, farm land etc

If you are not buying anything real which people will want to use in the future, you are wasting your money.

[bittraffic]

Unfortunately people are saving money in fiat currency which the purchasing power is shrinking. And they couldn't also decide which fiat to buy or asset to invest because while they may need to invest, they may also need the money instantly in case of something.

If they put it in BTC, they might also lose the value because its price is very unpredictable. The world economy is disturbing everyone. This is avoidable but world leaders prefer to make us suffer.

[Jawhead999]

That's why you shouldn't saving your money, instead invest your money.

If you hope the interest rate from your saving can cover up the monthly fee and inflation rate, it will not work because bank interest rate is really low and can't be used to hedge against inflation. If you want to hedge against inflation, you need to consider to invest in Bitcoin or gold, depends on your choice, your knowledge and your risk management.

[Asuspawer09]

Inflation is really biting hard, and nobody is doing anything about it, should we all just go with what Tupac said, "that's just the way it is, things will never be the same".
A lot of person's have ascribed this global inflation to the crisis Rocking Ukraine and Russia,  a lot of person's have also said it's as a result of shortage of gas supply across Europe and other countries.
The whole story is not just clear, as to why inflation is biting so hard and IMF AND WORLD BANK are not doing anything about it and the people are just left to face their fate alone.
The prices of goods and services are constantly going astronomical high and there is no hope insight of this ugly situation coming to a halt.

The purchasing powers of citizens are getting weak and I don't understand if the consumer protection laws are even effective anymore this days.
You buy something for a certain amount today, in the next one week, that same item you bought  has charged Prince without any reason.
How are you guys pulling it through with this inflation?

Inflation is a big problem around the world even big countries experience it and don't know how to solve it, I can really feel the inflation In my country back in the back my 500pesos is already a big amount of money and Its difficult to spend it on only foods if your not a big spender probably 50pesos is already enough for your food but now you can't buy anything on your 50pesos, rice, and meat will cost you around a 100pesos which is a big pump in the market.

Putting your money in your savings account is not actually a great idea at some point, just because of the inflation alone but it doesn't mean that you should stop saving your money, because you're not all of us have a big amount of money already, of course, your gonna need to save first in order to earn a good amount of money or at least invest. But make sure that you already have a big amount of money Don't just put it in your bank and let it stay there, what you should do is make your money work your you invest in something that could generate income or a passive income.

[livingfree]

That's why you shouldn't saving your money, instead invest your money.

I agree.

This is what I have learned from the influence of social media finance content creators. They're all saying the same thing that you shouldn't save money and if you're going to save money, that should only be good for the emergency purposes.

If you hope the interest rate from your saving can cover up the monthly fee and inflation rate, it will not work because bank interest rate is really low and can't be used to hedge against inflation. If you want to hedge against inflation, you need to consider to invest in Bitcoin or gold, depends on your choice, your knowledge and your risk management.

The percentage the savings and time deposits in the banks aren't going to be enough to cover the entire inflation. And they're always the winner on this case from the deposits of their customers.

Aside from Bitcoin and precious metals/jewelries, real estate is one of the best hedge.

[jrrsparkles]

Inflation is really biting hard, and nobody is doing anything about it, should we all just go with what Tupac said, "that's just the way it is, things will never be the same".
A lot of person's have ascribed this global inflation to the crisis Rocking Ukraine and Russia,  a lot of person's have also said it's as a result of shortage of gas supply across Europe and other countries.
The whole story is not just clear, as to why inflation is biting so hard and IMF AND WORLD BANK are not doing anything about it and the people are just left to face their fate alone.
The prices of goods and services are constantly going astronomical high and there is no hope insight of this ugly situation coming to a halt.

The purchasing powers of citizens are getting weak and I don't understand if the consumer protection laws are even effective anymore this days.
You buy something for a certain amount today, in the next one week, that same item you bought  has charged Prince without any reason.
How are you guys pulling it through with this inflation?

the reasons are very clear it is mainly due to the covid lockdowns which  seized the circulation of money in the economies then it later boosted by pumping freshly printed money all over the world then later Russia and Ukraine war fueled it further and the economic crisis felt all over the world.

Also FED adjusted the interested rate so all the central banks adjusted it accordingly which distressed the actual earning potential and forced to make more money than before due to loss of purchasing power contradict the unemployment hit peaks including mass lay offs from big tech companies including Google, Facebook, Twitter, Microsoft, etc.

[bitzizzix]

You should exchange the money you have for precious metals or gold whose value is relatively more stable, or exchange your money for assets whose value is not eroded by inflation, instead tends to increase, such as buying land, property or antiques.
You can also convert them to bitcoins, as bitcoins can hedge against inflation and devalue fiat currencies in the long run.
so it's better if you don't keep all your money in savings, and use it as needed, inflation has been felt by everyone so be wise in managing money and prioritize investments that you think are good for you and you understand.

[DrBeer]

Inflation is a "natural, natural" process in the world of money.
Therefore, there are not many options:
1. Accept it and live with it. That's what most people do
2. Migrate inflation-prone money into less inflationary products - e.g. gold, real estate.
3. invest the surplus money! But this is the most difficult way. It requires knowledge, experience, and the ability to assess risks correctly.

All other options will be variations of the three points listed above

[flyingcarpet]

Inflation really is a mess that’s ravaging a lot of financial security right now. Even though it’s not as hard as it was during the pandemic, it’s still something that’s still a pain to a lot of us. A lot of poor financial movements and planning from the governments really messed up a lot of the balance of things in the world. Unfortunately though, they wouldn’t take accountability to a lot of their actions and would rather pass the burden to us citizens than to admit that they did an oopsie. Wages aren’t improving, prices are still soaring, and none of us are really getting our quality of lives improved.

Governments do not hold themselves accountable for inflation. Their interventions in the market increase inflation even more. An unplanned business is unlikely to be successful. Most governments left their people alone in the face of inflation. Prices are constantly increasing, but salaries remain very low. I know this is a process, but they do not do anything concrete to prevent this negative process from prolonging.

[WatChe]

During periods of high inflation, its best not to keep all your money in a savings account. Sure your bank will pay you some yield but in reality, if you get 5% from the bank, the real inflation will be more like 10% and you will lose your buying power.

What is scary is that say they raise rates high enough to cause deflation. If it starts a recession then its not good because they will print more money to stimulate the economy and double digit inflation will be back. You need assets like stocks, real estate or... bitcoin.

Investing in sectors like stock or real estate will be beneficial only if you have some prior knowledge and experience of such investment. If you are hit with inflation and you invest all your capital in a sector of which you have limited or no knowledge then chances are that you wont be beneficial.

Like there are instances in bitcoin, people come up with huge capital with no knowledge of how to handle crypto market and they end up cursing Bitcoin. Its best not to keep your savings in cash during high inflation period but wisely investing them is another challenge.

[Sim_card]

Since the Covid-19 till now,inflation has become a big problem. There is nothing that the government can do to stop inflation because they will keep on printing more fiat currency thinking that it will be a solution to reduce inflation but blindly to them that it will worsen the level of inflation. This means that it is only you that can help yourself to balance up with the situation by increasing the source of your income. Invest in bitcoin because it is a store of value and also an investment so that you will not affected by inflation that much. If you don't provide an alternative means for yourself to survive,one might end up in poverty. The ongoing war is a big problem to the entire world,which has caused inflation.

[uchegod-21]

I don't care what a long-dead rapper said:



Now tell me, how do you explain those headlines from this past Thursday?  Is the US government lying?  Is the media lying?  

Someone living in the States is at the best position to say what is happening in the States. You acknowledged that the inflation was much sometimes ago but now everything seems to be under control. That is a welcome development.
In my country Nigeria, if the government makes effort to fix one part of the economy, the other part will be affected. It seems we are just wandering.
But then I do not believe everything I see on the media. The government works close with the media to filter and sensor the information that will be given the public. I have seen it in most times where the media is saying one thing and another is happening in the real life.

[m2017]

Inflation is really biting hard, and nobody is doing anything about it, should we all just go with what Tupac said, "that's just the way it is, things will never be the same".
A lot of person's have ascribed this global inflation to the crisis Rocking Ukraine and Russia,  a lot of person's have also said it's as a result of shortage of gas supply across Europe and other countries.
The whole story is not just clear, as to why inflation is biting so hard and IMF AND WORLD BANK are not doing anything about it and the people are just left to face their fate alone.
The prices of goods and services are constantly going astronomical high and there is no hope insight of this ugly situation coming to a halt.

The purchasing powers of citizens are getting weak and I don't understand if the consumer protection laws are even effective anymore this days.
You buy something for a certain amount today, in the next one week, that same item you bought  has charged Prince without any reason.
How are you guys pulling it through with this inflation?

Inflation is primarily associated with the non-ideality of the current economic system and the reasons for its occurrence are not at all connected with any events on the world map. If it is possible to create money out of thin air, in the form of loans, then inflation will be a side effect. In fact, inflation is embedded in this economic model, which means that in the current realities it is impossible to get rid of it. It can be managed and regulated, which financial institutions like IMF AND WORLD BANK or Central Banks usually try to do, but the results are not always effective. It is in the rise in the price of goods and services that inflation is expressed. Consumer protection laws are powerless here and it is naive to appeal to this. If you store value in paper money, then inflation will no doubt gobble it up. Bitcoin, which was created for this, can help to cope.

[Lucius]

~snip~
How are you guys pulling it through with this inflation?

As with all other challenges that arise in front of you, and that means that you have to find a way to overcome them or adapt to them. The fact is that ordinary people are unfortunately left to fend for themselves, and that means that you have to find some extra source of income and you have to change your lifestyle.

Replace more expensive products with cheaper ones, reduce all unnecessary expenses (cinema, restaurants, expensive clothes...) use public transport or bicycle more and if you have some money left at the end of the month try to invest it wisely. Of course, all this is not easy and you will not see the results overnight, but if you want to stay on the surface you have to swim with all your strength or you will sink sooner or later.

[Gulttam2a2]

I agree with you that inflation is eroding savings. The main cause of this inflation is due to the decrease in the value of money. It's like you said a war between Russia and Ukraine. Because I think it will. Due to this,the cost has also increased. If you go to buy something in the market now,you will not get anything in the budget that you will take with you. The prices of some things have increased in a way that common people like us could not even imagine. Earlier an item was available for 10$ but now it is 15$. Now I can't make the $5 I would have saved by doing this. Due to inflation,the government is not able to support itself. What will the consumer law do where a shopkeeper himself buys goods at a higher price but does not sell them at a higher price? He must make a profit. But there must be a limit to the profit.

[Betwrong]

~
The prices of goods and services are constantly going astronomical high and there is no hope insight of this ugly situation coming to a halt.

I'm sure it's not the same in all countries around the world. I just googled about Germany and France:


Source: statbureau.org/

See? The situation isn't that bad as in your case. Where do you live? Maybe, as it is always happens in countries with corrupt governments, they blame everything, weather, global crisis, USA, "the West", anything but themselves, while they are just exploiting you and stealing your money? Think of it, man.

[Crypt0Gore]

Inflation is getting on the throat of the poor masses, accepted but what do you think it's the best solution to this? Something that's been happening before I was born, probably even you OP, I am no more focusing on high inflation, because it has become a norm for everyone in the world, I just focus on my source of income, it was how someone was complaining to me the other day about her transport fee down to her store have increased so much, I replied her that she should increase her services fee as well, if she is charging 70$ before and inflation is getting on her throat she should had extra 10$ or 15$, that will solve her transport fee and case closed.

If things are too costly and you are making less money, find a way to increase how much you make per month, if you are selling goods for a price before and inflation hitted so hard, increase your goods price, problem solved, you can't say you are making money and what you will spend the money on is too overpriced because of inflation.

[Dimitri94]

Inflation is really biting hard, and nobody is doing anything about it, should we all just go with what Tupac said, "that's just the way it is, things will never be the same".
A lot of person's have ascribed this global inflation to the crisis Rocking Ukraine and Russia,  a lot of person's have also said it's as a result of shortage of gas supply across Europe and other countries.
The whole story is not just clear, as to why inflation is biting so hard and IMF AND WORLD BANK are not doing anything about it and the people are just left to face their fate alone.
The prices of goods and services are constantly going astronomical high and there is no hope insight of this ugly situation coming to a halt.

The purchasing powers of citizens are getting weak and I don't understand if the consumer protection laws are even effective anymore this days.
You buy something for a certain amount today, in the next one week, that same item you bought  has charged Prince without any reason.
How are you guys pulling it through with this inflation?

At present, inflation has brought a big disaster in the life of every people, some say it is due to Ukraine Russia war and some say it is due to Europe's gas supply, but the main issue is organized around the war of two countries. Due to the low supply of oil, the cost of transporting goods around the world has increased as well as the cost of production. However, due to the frequent increase in the price of oil, the price of goods has also been greatly affected, resulting in inflation. If the environment is not healthy at the international level, then inflation will increase further and people are likely to suffer more.