Tips for beating Inflation. A thread!
I have been thinking about the high inflation rate for a long time. Businesses are raising prices to us and we are seeing inflation rise. And this exposes people to dangers of inflation.
So why is inflation a concern for investors? 1/11
I have been thinking about the high inflation rate for a long time. Businesses are raising prices to us and we are seeing inflation rise. And this exposes people to dangers of inflation.
So why is inflation a concern for investors? 1/11
Inflation, or a general increase in prices, causes you to lose your purchasing power over time. For investors, this can turn what appears like a positive return into a negative one if inflation gets high enough. 2/11
Investing in a money market fund paying 9% annually may sound like a solid investment, but with high inflation of 9.2% your "real" return is negative. 3/11
How to beat inflation:
With inflation on the rise growing and protecting your wealth has never been more important.
This thread gives you tips to beat inflation. 4/11
With inflation on the rise growing and protecting your wealth has never been more important.
This thread gives you tips to beat inflation. 4/11
Look for companies that can raise prices during periods of higher inflation.
If a business can increase its prices, it has a big advantage during high inflation because itβs able to offset increasing costs.
EABL, BAT, Safaricom raised prices when excise duty increased. 5/11
If a business can increase its prices, it has a big advantage during high inflation because itβs able to offset increasing costs.
EABL, BAT, Safaricom raised prices when excise duty increased. 5/11
Invest in good businesses that earn high returns on the capital invested in the business.
During inflationary times, businesses with low capital needs that are able to maintain their earnings should do better than ones that are required to invest more at even higher prices. 6/11
During inflationary times, businesses with low capital needs that are able to maintain their earnings should do better than ones that are required to invest more at even higher prices. 6/11
Take a look at Infrastructure Bond.
Infrastructure bond is a good investment for investors who are concerned about rising inflation.
Infrastructure Bond pays investors fixed interest rate twice a year and it's tax free. 7/11
Infrastructure bond is a good investment for investors who are concerned about rising inflation.
Infrastructure Bond pays investors fixed interest rate twice a year and it's tax free. 7/11
Financial literacy is the best way to invest in yourself.
Gain knowledge and skills to manage your money and invest smarter. When you're financially literate you make smarter financial decisions.
Join @TheAbojani's masterclass and gain knowledge from experts. 8/11
Gain knowledge and skills to manage your money and invest smarter. When you're financially literate you make smarter financial decisions.
Join @TheAbojani's masterclass and gain knowledge from experts. 8/11
Stay away from investments with a return lower than inflation rate.
With inflation and interest rates to record high, they will eat into your returns to end up making negative returns.
Investments with low returns could be hurt significantly in an inflationary environment. 9/11
With inflation and interest rates to record high, they will eat into your returns to end up making negative returns.
Investments with low returns could be hurt significantly in an inflationary environment. 9/11
Limit your wants
One of the great defenses to being worried about inflation is not having a lot of silly needs in your life.
If you havenβt created a lot of artificial demand to drown in consumer goods, you should have a considerable defense against the changes of life. 10/11
One of the great defenses to being worried about inflation is not having a lot of silly needs in your life.
If you havenβt created a lot of artificial demand to drown in consumer goods, you should have a considerable defense against the changes of life. 10/11
Stop bad spending habits.
To help you with this, consider tracking your expenses through a budget. It will help you understand how youβre spending your money and may help identify bad spending habits.
Join @TheAbojani's masterclass and learn how to create a good budget. 11/11
To help you with this, consider tracking your expenses through a budget. It will help you understand how youβre spending your money and may help identify bad spending habits.
Join @TheAbojani's masterclass and learn how to create a good budget. 11/11
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