A Few Ways To Combat Inflation
By Laura Reeves
I am sure everyone could relate to the uneasy feeling you get when
comparing prices at the grocery store, restaurant or just about
everywhere for that matter. I remember purchasing a dozen eggs in
2020 for $2.00, they are now $6.00. This is a risk we all face now
called purchasing power. In order to preserve the value of our
dollar, we need to circumvent this eroding effect by being as
prudent as ever with our spending and saving habits. Below, are some suggestions that might
cushion the blow and help preserve your assets.
❖ Be mindful of when making large purchases. Typically, there are certain opportune buying
times when sales are most abundant. Here are a few to get you thinking; Home Appliances:
July & September Automobile: End of December Laptops/Computers: July-August
Furniture: November
❖ Consider growing your own food. I find there is nothing more satisfying than establishing your
own garden. We have grown our own vegetables and expanded over the years. To this day,
gathering that first harvest of peppers, basil, parsley, tomatoes, and lettuce brings us such a sense
of joy, it is extremely gratifying! So grab a couple of veggie plants and some pots and join me.
That blissful feeling you will get is priceless, and as a bonus, you will save money all summer!
❖ Diversify your portfolio. One way to do this is through a Real Estate Investment Trust (REIT)
which comprises a wide scope of real estate that the investor can purchase through a mutual fund,
individual company stock or an exchange traded fund (ETF) This can be an advantageous way
of owning real estate without the hassles of the due diligence involved with owning real estate
firsthand. Provided the investor has the capacity for a long-term investment (5-7 years), a REIT
may be a sensible way to diversify as it lacks correlation, which can help reduce overall portfolio
risk. In addition, REIT’s are required to pay at least 90% of their income (typically from tenants)
to their shareholders, offering additional benefits of income potential and capital appreciation.