Ask Lemmy

Convert your emergency savings to a more stable currency.

Restructure any variable-rate debt into fixed-rate debt.

Consider taking out an additional fixed-rate loan and use it to buy staples in bulk.

Not an expert at all, but I'd say investing it, not spending it.

You want to have your money on things that will "reflect" that inflation in their prices. In my country, it is usually a good idea to invest on real estate, but I don't know about your country.

This is NOT a financial advise, I'm just a random guy in an internet forum.

Preparing for higher than normal rates of inflation or even Hyperinflation is a smart thing to do. I'm not an expert but I have been thinking about this for a bit. How you prepare is going to vary greatly depending on your living standards, your personal situation, your means, and your ability. But basically you want to be as self/comunity suficent as possible, while also investing in things you think will hold its value better than the inflated currencies.

Learn to make or do as much you can, either yourself or with assistance from your local community. There is a large range of possibilities but the more you can do yourself instead of outsourcing (outside of your community) will greatly insulate you from inflation. Mending clothes, storing dry goods, sprouting beans, using free and open source software, foraging for food, or maintaining your own bicycles & machinery are all things that can help a lot. Some things might not be possible for you to do while other things might require some investment of sweat equity, training or tools/infrastructure.

Things like growing your own food can take a lot of time and resources to start out. But helping a neighbor who already has a garden will teach you much, forge community bonds, and probably help you secure some food. This is all to say that the less you depend on the open market, the less inflation will affect you.

Along with reducing your dependency on the open market you should think about your finances and what they will become in a high inflation environment. Using historical examples might be useful or they may not and you should realize that every situation is unique. The key is to hedge your bets and don't look at any one strategy as safe.

Utilize fixed low interest debt (or your savings if you have some) to secure investments you know in your gut has some intrinsic value and that is very likely to stay close to your original purchase price. You can try to invest in things that may outpace or grow with inflation, but realize the risks involved. This applies to real estate, stocks, precious metals, other currencies, and pretty much anything that thing you can buy. Things with intrinsic value are more likely to still be worth money in the future, you might not make a profit but when dealing with high inflation the goal is just to not see your assets devalue while all the things around you raise in price.

Bonus: I think a lot of this information applies in this context. https://pdfhost.io/v/wzrA1Oiy0_The_Modern_Survival_Guide

Can you immigrate now? Generally that high in'lation implies a lot of other bad things to best is to get out now. Even if you leave with just the clothes on your back that is often a better return than anyone staying can get. (Unless you are the winning side of a corrupt revolution - you can make out very good in that case.)

Inflation means cash is losing value, so prices will rise. You don't want to have a pile of cash sitting in your bank. Here are some possible options. (I am not a professional, do your own research, etc. What works in one situation may not work in another.)

• Convert your cash into more stable stores of value. Buy physical property (homes and land), invest in gold or other precious metals, invest in agricultural commodities, etc. People always need places to live, food to eat, wood to build, clothing to wear. These sorts of things tend to stay in demand.

• Convert your cash to a more stable currency. You could buy a foreign country's sovereign bonds, or exchange some of your cash for Euros or whatever. Over the past 80 years US dollars and US government bonds have been popular for this, but those feel a bit risky at the moment.

• Spend your cash now on quality, durable goods that will last a long time. The new roof you need on your house will only be more expensive after inflation has eroded your purchasing power.

• Buy investments that (hopefully) return an interest rate greater than the inflation rate. Stock funds can sometimes do this, but not always.

• If you have stable income and are confident that it will remain stable, you can gamble with debt. For example, borrow money today at X% interest, and if future inflation is >X% then you benefit by repaying the debt with cheaper future money.

I'd like to point out that OP stated they did Not want investment advice.

I'll second another comment saying to get out of possible. Take what you can, sell what you can't take, go somewhere that is having a better time.