shysteepinoy01


With the US dollar dropping to new lows I would like to know…..How do you protect your money (US dollars) from inflation? Would it be wise to invest in foreign currencies or commodities?

If so please explain why.

4 Responses to “How do you protect your money from inflation?”

1. $so fresh so clean$ on November 29th, 2008 1:31 am

   Stocks are one of the most sound ways. Putting ALL of your money in bank accounts won’t do, because the return won’t keep up with the pace of inflation. And with the way the market is now, this is the perfect time to buy.

2. GIJO G on December 1st, 2008 1:36 am

   Wise investments are the key to survive Inflation. Investing in shares of good companies can be a good way to fight inflation. But to do this you should have an overall idea about the financial market to know when to buy or when to sell. Here comes the Mutual funds for your rescue. Mutual funds are managed by experienced fund managers who take care of your money through tough times in the financial market.

3. David M on December 2nd, 2008 12:39 am

   Stocks, especially oil stocks. Oil stocks have proven to be a better hedge against inflation than gold or gold stocks.

4. Goonhilda on December 3rd, 2008 12:58 pm

   The best thing to do to protect your money against inflation is to invest it. I wouldn’t invest it in foreign currencies directly — too much effort and risk. I suggest you track down a good mutual fund that does that for you.

   If you can get at least 6% interest, you’ll be protected against inflation, but your money won’t grow astronomically.

   You should go to the library and get some books out on personal finance. They might have some better strategies in them. Also, consider going to your bank and asking if they can recommend a financial planner. Sometimes they offer them as a free service, but if they don’t, they might know a good one.

   Best wishes

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