Inflation due to depreciation of money, economic reality and an objective process. Even the outstanding economists at the helm of state power structures fail to defeat it, so it doesn't make much sense to fight it - it is better to try to nullify or at least reduce its negative impact on your purchasing power.
Inflation and personal finance
It is believed that high inflation encourages citizens not to save money under mattresses, but to invest it, stimulating the development of the economy. This happens because, trying to save the available funds from depreciation, citizens usually bring them to banks and put them on deposit accounts, the profitability of which, albeit not much, is higher than inflation. Banks, in turn, use these funds, including for lending to commercial enterprises, various business projects, issuing them at interest several times higher than inflation.
Where to invest free funds to save from inflation depends on the amount. If it is not large, you can purchase food for long-term storage or construction and finishing materials for a long-planned renovation. In the event that this amount is calculated in several hundred thousand rubles, a deposit account in a reliable bank will save it from depreciation. However, taking into account recent events, when the Central Bank revokes licenses with enviable constancy, this investment is also risky, although bank deposits are protected by insurance.
In order not only to save, but also to increase funds, despite inflation, they should be invested in assets with a higher yield: securities, stocks, investment funds, etc. risks associated with non-return of the invested amounts. In addition, such investments will require additional financial knowledge. In this case, it is advisable to use the services of independent financial experts.
How not to depend on inflation
In Russia, where the experience of free enterprise is calculated for a couple of decades, inflationary processes are still perceived by citizens as an uncontrollable element. Meanwhile, Western experts have long ago developed recommendations in this regard. They say that your personal talent is the best defense against inflation to make you feel confident at all times. If you manage to become a sought-after specialist in any field - a lawyer, a musician, a bricklayer, a hairdresser - you will never be out of work and will always dictate your terms.
Another way is own business and the ability to manage it talentedly. The goods and services that are in demand at any time that your company can offer to consumers are the most reliable protection against inflation.
