Prices are going up for everything: milk, eggs, coffee, gas, cars and anything you can think of. The cost of goods has been rising steadily for a few years but the experts blame the recent hike in prices on the pandemic. This forces companies to pay more for raw materials like wheat and aluminum. When the costs go up, they’ve got to make up the difference somehow-which is by raising prices on goods sold.
As the cost of goods continues to rise, many people are struggling to keep up with the increasing prices. This is especially true for those who are already living paycheck-to-paycheck. Unfortunately, it seems that the trend of rising prices is only going to continue in the coming years. When prices go up your buying and purchasing power goes down. There is no one definitive solution to this problem, but there are strategies that you can take right now that will help you and your family stay abreast!
The best way to combat the effects of rising prices is to make a mindset and lifestyle change now and focus your attention on the following three strategies. These strategies are what Warren Buffett has advised us to focus on over the years but now they are more important than ever!
1. Increasing your earning power by investing in yourself
One way to combat the effects of rising prices is to invest in yourself. Increasing your earning power can help offset the increased costs of goods. There are a lot of ways you can do this: you can get more education or training, learn new skills, or start your own business. If you are paycheck to paycheck you can pick up a side gig or get more hours from your employer. The focus should be on increasing your monthly cash flow. Because this will allow you to keep your purchasing power where it is or increase it. This may sound difficult or uncomfortable but the best way to stay ahead of inflation is to stay super productive by growing your personal stock! Keep investing in yourself!
2. Own an interest in a business (actively or passively)
If you want to really combat the effects of rising prices, you should look into owning an interest in a business. Owning a business gives you control over your own financial destiny and allows you to protect yourself from inflation. There are a lot of different types of businesses you can own, so there is something for everyone. If you do not have the mental or physical capacity to run a business, that is to say be actively involved, you can buy an interest in a business and have someone else run the business. Just make sure to do your homework on the numbers and on the partner or partners you are deciding to go into business with.
3. Stop buying stupid stuff and save money
Saving money is one way to combat the effects of rising prices. When you have money saved, you are in a better position to afford the increased prices. There are a lot of different ways to save money, so find one that best suits your needs. You can start by evaluating your spending habits and making changes where necessary. You can also start a budget and stick to it. Another great way to save money is by consolidating your debt and getting a lower interest rate. When you have less debt, you have more money to put towards savings.
Rising prices can be a serious challenge for businesses and consumers alike. However, by focusing on the strategies we’ve outlined in this article, you can combat the effects of rising prices and maintain your purchasing power. By being proactive and planning ahead, you can keep your costs down and ensure that you’re not taken advantage of by price hikes. What tips do you have for combating rising prices? Let us know in the comments below!
I hope this was insightful to you! Until next time…
