Eight Ways to Manage Inflation

October 31, 2011 by Taylor Studios in Professional & Industry Tips

Many economists are forecasting double-digit inflation in our near future. This kind of inflation hasn’t been around for 25 years. Inflation means the purchasing power of money will decrease. A dollar will buy less than yesterday. A recent indicator of upcoming inflation is increasing prices of materials like paint. As a company we will have to raise our material prices accordingly to just keep up.

Here are some things businesses and our clients can do to help manage inflationary pressures:

Individuals can also manage for inflation using the same ideas. You can refinance your home now and lock in a 30-year mortgage instead of a 15. I’m usually not a proponent of a long-term mortgage, yet in inflationary times it is the best approach. You can always pay more each month and I would encourage that. Remember to live below your means and save. If you rent you could lock in a two-year lease instead of a one-year.