How can you beat inflation and be safe and sound with your money?

Ailsa Adam November 15, 2022

Inflation is a measure of money that decides its fate in the near future. When prices are rising continuously, and there is no break to them, it is an indication of inflation hitting the economy.

In recent months, inflation has hit the highest of 10.1% in September 2022, the highest in the past 12 months. This high inflation has led to an increase in the cost of everyday items. And hence, it is disturbs the whole budget of any household.

On a macro level, the government takes various measures to control rising inflation in any economy. The banks usually raise the interest rate to curb rising inflation.

The inflation monster

The rates of everything are further expected to rise in 2023. Because of inflation, mortgage rates will rise too. If you are availing of any loan, such as a pound 1000 cash loan for poor credit, you may have to pay a higher rate in the coming years because of inflation.

However, with the help of several ways, you can save your money in the rising inflation scenario. By following the steps, you may be able to make your money less prone to inflation. Also, it limits the damage that it is causing to your finances and savings.

Tips to be inflation ready

If you are facing a problem with your money and rising prices, these are some tips for you to follow.

1. Inflation-proof your savings

Savings are an essential part of every individual‘s finances. If we are saving and we are not getting enough interest-rate on it, there is no point doing it. Try to keep your savings inflation-proof, which means getting the interest rate on savings higher than the inflation rate.

There is no specific guideline that you can follow, but you can creatively make use of money. With the banks announcing the interest rates, understand these rates, assess, and compare them.

The answer to this is to save more and more money every day. Wherever you get the best interest rate, put your money into that. If there are personal or private sources, also go with them. The main aim is to beat inflation with your savings. Try to save money with the best returns and make it inflation-proof.

2. Make inflation-proof investments

Like savings, make your investments inflation proof too. Investing in money with a lower return rate will not help you. Try to find out sources like mutual funds and stocks that offer you a reasonable rate of return.

Some people believe in saving their money in their bank accounts. It is doing no good to them. Try to expose your money to different sources so that you gain returns from them.

Try to implement the technique of diversification. Whenever you diversify your investments, you are pushing inflation away. If one thing is not giving you the correct returns, the other one will.

3. Fix your mortgage

Mortgage plays an essential role during inflation. Fix up your mortgage, and do not keep it waiting. When individuals keep on fluctuating their money, it leads to a loss. The rate you get from a private lender or a bank is the best you can, and try to fix it on that.

Lenders may change their interest rates according to the inflation but talk to them. If the variable interest rate is not suitable for you, be honest with your lender.

For instance, if you have availed pound 5k loan with bad credit for two years, the interest rate will remain the same for that specific period. It will not change irrespective of the changes in the base rate. With inflation, the mortgage rates also change as borrowing costs increase. Hence, try to shop around and choose the right lender for you to get better deals.

4. Earn cashback

Look for different cashback offers and rewards. Whenever you are shopping for something or going to purchase a big thing, always look for rewards. You can shop without this cashback, but if you do it with them, it will benefit you.

Several websites offer you different discount vouchers and cashback. If you are referring someone, you get a referral discount as well. Before buying anything, check with the vendor or with the website about these offers.

Saving money is not only related to saving it in a bank account. Whenever you are cutting down on your bill, it is also considered as saving.

5. Invest in real estate

Real estate investment is one good option during the inflation period. The prices are rising, and the demand is going down. If you have spare money in such cases, go for a property. When inflation will be come down and the prices will get back to normal, you can earn a good amount from your property.

The average house prices in the UK increased by 14.1% in 2021. According to the national statistics, inflation is rising at 10.2%. This way, you can have a good saving amount through your property investment.

Apart from earning money out of it, put your property on rent. Many people are looking for accommodation, and you can benefit from it. The rent you are continuously getting in from your property is another saving stream.

When people are living in your house, the maintenance is also less. A vacant house requires more maintenance and renovation from time to time.

6. Review your spending

Before spending money, always review it. Some people spend mindlessly and do not care about it. When inflation strikes, they are left with empty pockets. If you can save money beforehand, nothing like it.

Work on different saving sources and cut down on your spending. For instance, if you are going shopping, make a list beforehand. Reach into the market and then spending can lead to impulsive spending.

Most individuals need help understanding the factor of being impulsive. They feel happy while spending their money. Eventually, if you look at it from a larger perspective, you’re spending unnecessarily. Hence, be aware and alert while paying.


Inflation can strike at any time. Be prepared for such economic situations. Do not spend more money, even if inflation is not there. The amount you are letting go of your pocket will not return to you. Keep as much money in your pockets as possible, and be ready for an inflationary wave. Try to imbibe and implement the same technique in your family as well.

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