3 Ways to Protect Your Money During High Inflation

It’s game-on to get your finances in great shape as interest rates and the cost of living begins to head higher. But as we head out of the pandemic, amidst global and local economic pressures, things are changing, and we need to get ready for the new normal.

Here are three ways to handle your money as rates rise:

1. Maintain a Rainy Day fund

Start by building an emergency fund that can cover three to six months’ worth of expenses, just in case you find yourself in a situation where you need extra cash fast.

From there, ask yourself what extra costs you might need to cover in the next year — a new car, for example, or a new laptop — and start setting money aside now. The more money you save today, the more likely you’ll be able to make smart spending decisions without having to compromise on quality or go into debt.

2. Consolidate debts
One of the best ways to save money during inflation is by cutting unnecessary expenses — and by consolidating your credit card debt onto a balance transfer credit card, you could cut out those pesky interest charges that take a bite out of your budget. The best balance transfer credit cards offer at least a year of 0% on balance transfers, giving you time to pay down your debt without having to pay interest on your transferred balance.

A good balance transfer credit card helps you not only save money during high inflation but also allows you to pay off old debts and improve your credit score. That’s a win-win!

3. Invest smartly

By investing your money, you give yourself the opportunity to take advantage of corporate and business growth — and if you invest in companies that are likely to grow even during periods of high inflation, you could end up reaping a portion of the returns.