It seems like every single day we hear about inflation. It is talked about everywhere!! With inflation rising 6.2% since October 2020, it is no surprise. Gas prices, cars, groceries, travel and just about everything else has seen a price increase. 40% of all U.S. dollars have been printed in the last 12 months….
When it comes to personal finance, I like to focus on what the individual can control. For starters, I only recommend keeping 3-6 months’ worth of expenses in the emergency fund. This is cash that can easily be accessed when you have an emergency. Any cash above the 3-6 months should be going towards investing and buying assets. An asset is something that goes up in value over time. Not down!
Another way to avoid being a victim to inflation, is to limit your wants. We all have wants and that is perfectly normal. Human beings naturally want better and newer things. By having a written budget, it helps us have boundaries with money. Once you are clear what those boundaries are, you can feel in control of your money! You got this.