How To Counter Inflation

It seems all anyone is talking about still is the crazy high inflation rate. Now coming in at 8.6% which is the highest yet. This off set people big time as they realized the worst of it is not over yet.

With increasing inflation here are some steadfast ways to try and counter it as every day you're buying power with your same $ is falling. It's also having a huge effect on stocks and on crypto around the world.

The Short Term or Long Term

No one really knows how long inflation will stay high. The target for the fed it to keep inflation at 3% or less which it's done well since 1992 however before that time inflation rates often sat at 6%+ and reached as high as 13.55% in 1980. This puts this number inching closer and closer to the 1980's however it was only a year or two after this spike that inflation rates returned and stayed at 5% or less. That's a nearly 40 year run of 4% or less.

However this inflation is unlike anything we have seen in the past and like many cases it's unique in what's going on in the world and how everyone is reacting including governments.

I think it's safe to say this higher than 6% inflation rate will most likely stick with us for another year.

Stocks

With stock you'll be looking at a long term hold and one most likely with a proven track record that will do well in both market conditions and pay at decent APR rate. In most cases these are REITs which are required to pay out 90% of their earnings to stock holders in the form of dividends. In most cases REITs do well because they are often times mortgage based. However be sure to do you own research as some are short term rental properties and might suffer during higher inflation due to people moving out to lower cost options.

As rental or mortgage rates increase this means a increase in capital for the REITs which is then paid out to dividend holders. The reason why this is a long term play is these stock prices will also get hammered just from the overall sell off. But it also opens up the possibilities to getting these stock for cheap and reap higher than normal dividend rates a year or so down the line. Also in the USA most would fall under long term gains which means only 15% tax increase of your standard rate.

Grow your own food or shop local farms

Food is expensive especially the cost of going out to eat. One of the most effective ways to beat inflation is to shop at a local farm and buy items in bulk that are on sale that will last a year or longer in storage. This will drastically cut down on your food bill each month and the lower prices by going to the farm and shopping directly instead of the store can often times provide you with great deals and fresh produce. Most also have the capabilities of at least growing a small portion of food on their land and right now is prime planting season! Get out there and catch some rays and see what you can produce.

Crypto

Yep, what would this post be without the mention of crypto. Look at crypto the same as a stock. During high inflation the sell off often times follows the stocks. With that comes a number of things. Higher APRs on most DeFi platforms like CUBDeFi and PolyCub along with many crypto tokens.

Most crypto platforms now work on proof of stake or some type of means such as this. This means you can now most likely buy low cost crypto tokens on blockchains you feel are robust and will last the storm. They will most likely come out on the other end in a rally and during all of that down time you stacked and staked your way to increasing your wealth.

What are ways you're taking to beat inflation?

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