Fight Inflation In Your Retirement

If you’ve lived long enough to be thinking seriously about retirement, you remember inflation. While it’s not a problem right now, just like everything else, it’ll come around again, and if you’re on a fixed income it’s important that you’re able to fight inflation in your retirement.

Buying a home will fix your monthly payments for decades, helping you fight inflation in your retirement.

Fight inflation in your retirement

It’s important to plan ahead now, so you’re prepared when inflation rears its ugly head again. Here are some ideas that can help:

Buy a home. There are many reasons to rent in retirement, but one of the advantages of home ownership is that you can hedge against inflation by getting a fixed mortgage, fixing your monthly payment for decades.

Find lower-cost alternatives to replace what you enjoy. It’s true that inflation makes the same item cost more, but you can still slash your budget by using alternatives that are less costly. In order to not feel deprived, look for replacements that are truly similar to what you currently enjoy.

Skip some expenses regularly. Inflation will affect your budget less as an absolute dollar amount if your overall expenses are lower. Once in a while, try to skip your expenses.

Limit lifestyle inflation. There are many expenses that creep up as time goes on, but there are often other expenses, such as electronics costs, that go down over time as well. A major source of inflation is actually self-induced via lifestyle inflation.

Buy stocks of companies that make more when you have to pay more. One way to at least take part in price increases is to invest in companies that benefit when they charge you more. Proctor and Gamble (PG), for instance, is a company that will make more money when the products they sell cost more on the shelves.

Retirement will be a challenge for nearly all of us, but looking back over what you’ve accomplished, you should feel confident you can make it work, especially if you take steps to fight inflation in your retirement.

Click here to learn more about how you can fight inflation in your retirement.

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