Available investment methods. The most popular ways to invest in order to protect savings from inflation include, among others:

  • a bank deposit
  • buying gold
  • creating a dual-currency/multi-currency portfolio
  • purchasing securities or bonds
  • taking out a loan for a business or “large” purchases
  • investing in real estate

Let’s take a closer look at each of these methods

A bank deposit seems to be the simplest and most effective option, but it will not keep up with inflation. Unless you can save money with interest income of 5–10% per year on foreign-currency deposits.

Buying a “bar” of gold will not produce the expected results either. After all, the 8–10% annual net return that an investor receives will not outpace inflation. In addition, gold will have to be stored somewhere, which involves an extra expense.
Creating a dual-currency portfolio is considered one of the safest ways to “outsmart” inflation. However, it does not work in the event of a global crisis. If inflation is not global, you can feel free to put together your own multi-currency portfolio and, if you do not have available funds, take out a quick loan, for example, from Szybka Gotówka.

The classic, proven method of safely “placing” your money, such as purchasing securities or bonds, is not that simple. Some bonds can be purchased with an annual yield of 7, 8, or 9 percent. In the case of currencies, it is 3–4% per year. Outpacing inflation by purchasing bonds or securities is possible only if you trade them competently and effectively.

Taking out a business loan at 8–10% per year is extremely profitable during inflation. However, you should carefully consider whether such a step is justified. The same applies to larger purchases, which should be made only if they were planned well in advance and the necessary amount has been set aside. Smaller purchases can be made using the microloan service Szybka Gotówka.

Investing in real estate requires thorough knowledge of the market, an understanding of its prospects, and access to large sums of money. If you have been planning to purchase a property for a long time and have even saved the money, this is a great option. If not, we recommend seeking help from real estate professionals.

If none of the above methods of “outsmarting” inflation appeal to you, we suggest taking the “traditional” route—reviewing your expenses and income.
A crisis is a great time to review and minimize expenses. The first step is to conduct a mini-audit to check whether there are unavoidable expenses, such as loans, tuition fees, or care for elderly or sick relatives. After this audit, you should determine whether you have sufficient financial resources if your expenses increase by 10%/20%/30%. Once you establish which cost increase would be critical in your case, you should consider ways to solve the problem, such as repaying a loan early, building up reserves, or paying tuition in advance.

Moreover, inexpensive goods usually rise in price more sharply, especially those whose purchase cannot be avoided. This means that the lower you are on the prosperity scale, the higher your personal inflation rate, and you can improve the situation only by increasing your income.

If your profession is in short supply or popular, you can increase your income by asking for a raise or looking for a better-paying job. People whose profession is not in such high demand should invest in education and then in their job search. If you are satisfied with your job and its pay but sometimes feel a little underappreciated, you can use the service Szybka Gotówka.

Don’t panic

Regardless of the scale of inflation and its possible causes, the most important thing is not to panic. You can calmly analyze the situation and find the best way to save money and avoid financial difficulties. Inflation also has a positive side: if it remains moderate, it can significantly stimulate economic growth.