How The Average Person Can Combat Inflation

5 Things you can do today!

Inflation continues to dominate headlines as todays report from BLS shows no signs of slowing and down and actually accelerating, and this trend will persist as a significant concern until, perhaps one day, it reverts to a more manageable level. As we remain committed to keeping you informed on this pressing topic, we ponder: What can individuals do today, aside from investments, to secure their financial futures amidst this era of inflation?

In a world where inflation continues to make waves and disrupt the daily lives of individuals and families, understanding how to navigate this economic challenge has become imperative. This challenge, which has not been a major factor for decades, is now thrust into the forefront of economic and political discussions. The rising cost of goods and services, driven by factors such as an increase in the money supply and historically low government-set interest rates, has left many searching for ways to shield their financial well-being from the mounting price pressures of today. For instance, gas prices at the pump have surged by 70% since 2021, with a 21% increase this year alone.

The Inflation Conundrum

The traditional definition of inflation once referred to an increase in the money supply, which in turn led to rising prices. However, since the US  government controls the money supply, the definition has shifted to focus on the Consumer Price Index, diverting attention from the underlying causes. While the government asserts that a moderate level of inflation is a sign of a healthy, growing economy, some economists, including those at The Coastal Journal, argue that the best inflation for a healthy economy would be no inflation. Inflation erodes the purchasing power of our fiat currency, and with current inflation rates averaging 4%, well above the Federal Reserve's 2% target, concerns have risen among consumers and policymakers alike. At the current rate of 4% inflation, the purchasing power of your dollars will decrease by fifty percent in 18 years, potentially disrupting financial stability and contributing to social unrest.

Practical Measures to Counter Inflation

So, what can individuals do today to combat the effects of inflation? Here are some practical strategies:

1. Avoid Credit Card Debt

Credit card debt is hitting record highs every month, now over $1 trillion.  With interest on the that debt now rising the best thing someone can do is to consolidate the debt and pay it off as quickly as possible.

2. Buy in Bulk

Purchasing goods and frequently used items in bulk can be a wise financial move. Warehouse clubs and bulk stores offer opportunities to save on essentials like toiletries, cleaning supplies, and non-perishable food items. Buying in bulk can help individuals lock in lower prices and reduce the impact of inflation on their everyday expenses.

3. Cut Expenses

Reviewing monthly expenses and identifying areas where cost-cutting is possible can free up funds that can be used to offset rising costs. This might involve reevaluating subscription services, such as streaming services, or making energy-efficient choices to lower utility costs.

4. Adjust Spending Habits

Modifying spending habits can significantly impact an individual's financial well-being. Instead of dining out three nights a week, consider reducing it to two. Opt for more cost-effective entertainment options, such as hosting a movie night at home or exploring free local activities.

5. Invest in Real Assets

While traditional investments like stocks and bonds are essential components of a diversified portfolio, holding real assets like gold and silver can serve as a hedge against inflation. Historically, precious metals retain their value during periods of high inflation, making them an attractive option for those looking to safeguard their wealth

Inflation remains a persistent concern that can affect the financial stability of individuals and families. While it may not be possible to entirely eliminate the effects of inflation, taking these 5 proactive steps can help individuals navigate these economically challenging times. As we continue to report on inflation, these strategies can serve as valuable tools for individuals seeking to secure their financial future.

**The Coastal Journal encourages you to stay informed, engage in conversations about the implications of monetary policies, and hold our leaders accountable for the betterment of our society.