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Managing your money in times of high inflation

27 Oct 2023

Goal based investing
Illustration of a piggy bank with coins on a calculator representing finance

In the face of high inflation and rising prices, managing your finances and investments requires strategic planning and foresight. Firstly, it's important to create a budget that prioritizes essential expenses like food, rent, and healthcare. Cut down on non-essential spending and focus on saving wherever possible. We all know this. Our parents remind us more times than we would like. And they are not wrong.

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    In the face of high inflation and rising prices, managing your finances and investments requires strategic planning and foresight. Firstly, it's important to create a budget that prioritizes essential expenses like food, rent, and healthcare. Cut down on non-essential spending and focus on saving wherever possible. We all know this. Our parents remind us more times than we would like. And they are not wrong.

    Diversify, it’s the only way to improve returns and stabilize results.

    Diversifying your investments becomes paramount during times of rampant inflation. Consider allocating your funds across various asset classes like stocks, real estate, and commodities. Historically, these assets have shown resilience in preserving wealth during inflationary periods. Additionally, explore investment options that specifically hedge against inflation, such as Treasury Inflation-Protected Securities (TIPS) or mutual funds designed for high-inflation environments.

    Reassess your debt strategy.

    High inflation erodes the real value of debt, making it advantageous to pay off high-interest loans as quickly as possible. Refinancing at fixed interest rates might also be a wise move to secure stable monthly payments.

    Seek advice and stay informed

    Lastly, stay informed and seek advice from financial experts. Keeping abreast of market trends and economic indicators can help you make informed decisions about your investments and financial planning.

    By budgeting wisely, diversifying investments, managing debt strategically and staying informed, you can navigate many financial challenges and secure your financial future. Remember, planning today will lead to a more stable tomorrow.

    MyFi provides people with intelligent and unbiased financial advice. We find that people struggle with managing their finances, perhaps because they don’t have time, knowledge, or the inclination to dedicate to this. MyFi’s AI powered investment assistant does most of the work for you. It alerts you when things need your attention and assists you to make decisions that feel overwhelming. We are due to launch into the market soon. Get on our waitlist to participate in the pilot launch and take it for a test drive.


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