Ways to protect your money from Inflation

The inflation is the rise in the cost of living. Inflation decreases the cost of your money.

Inflation just decreases your spending power. If the economy is inflating, you will be losing your purchasing power. Inflation slowly rots your money and people do not realize this. Inflation is life a parasite that eats you money.



So, what you can do protect yourself from inflation?
You just can not leave your money in cash or in savings account, you need to invest your money. You need to invest your money and you should ensure that you just gain more than the inflation take away, to save your money.

I will explain you in other words, if the inflation is 3% and you gain only 2% on your investment, you are actually in loss of 1%. Though you might think that you have won, but in reality you have lost 1% of your purchasing power. You must gain more than 3% to be in profit and do not lose your purchasing power.

So, ensure that you gain more than the inflation.

There are also some government bonds that will give you inflation security. You can also invest in them.

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