Vic's top tips to combat inflation – The Curve

Vic's top tips to combat inflation

Top tips to combat inflation
Let's talk inflation
The next hottest topic after Johnny Depp and Amber Heard.

Inflation can sometimes feel like you're “running up a down escalator", and with today's current financial climate, it feels as if we constantly running up a very, very long escalator.

We're all dying to know when this current inflation spike will end (RIP cheese boards with the current cost of cheese). In all honesty, it’s still hard to tell if the current spike in inflation is likely to last or if it will start to recede.

So why is inflation such a concern for investors?

Inflation, or a general increase in prices, causes you to lose your purchasing power over time. For investors, this can turn what appears to be a positive return into a negative one if inflation gets high enough. Here are some of my top tips to ensure you and your portfolio are in the best position for this current inflationary market.

Here are some of my top tips
to ensure you and your portfolio are in the best position for this current inflationary market.
💸 Invest in yourself Being the best at what you do and investing in your own talent is one of the best ways to maintain your purchasing power over time, making you an indispensable employee in the future. Increasing your value to your employer will help you command your fair share of earnings over time.

💸 Invest in good companies that can raise prices One of the most important decisions in evaluating a business is pricing power. If a business can raise prices without losing business to a competitor, that's a very good business. Also, if a business can increase its prices, it has a big advantage during periods of high inflation because it’s able to offset its own increasing costs.

💸 Don't keep money in the bank Inflation is often called 'the hidden tax' because your purchasing power reduces over time. Money in the bank getting zero-to-low returns is a terrible place for your money to be, and even more so during high inflation! Make sure your money is getting a return at least as high as the current inflation rate.

💸Limit your needs and wants One of the great defenses against worrying about inflation is not having a lot of silly needs in your life. One of our favourite ways to combat this is tracking your expenses through budgeting. This will help you understand how you’re currently spending your money and may help identify problematic spending before it becomes a nasty habit.

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