Inflation, And How To Handle It
Updated: Aug 3
Have you noticed the way prices are going up?
I am being told by my builder clients that materials prices are increasing at a much faster rate than ever as much as 5 times what the original price was.
This is inflation and we are seeing that the money we earn is depreciating on a daily basis.
So what is the answer?
Increase your prices
With Inflation, you do not have much of a choice to not increase your prices. No need to defend yourself or explain why you want to raise your prices. It is nobody else’s business but yours. Stop putting yourself on the back foot. Of course, it’s courteous to let your clients know in advance. It’s a great ‘excuse’ to get in touch with your customers to inform them that you are planning to raise your prices. You might even get some extra orders and you are building a trustworthy long-term relationship with them.
Also with the money you do earn, it cannot just be frittered away on stuff that will be thrown out at some time but it needs to be saved. But where? Banks and building societies will tell you about their .5% interest savings accounts but the answer lies in buying assets that will appreciate in value.
Gold and Silver
It is not hard to buy gold silver and although I would not recommend that you keep it under the bed there are online businesses that would store it for you.
Stocks and Shares
Stocks and shares are another way to safeguard your money and again they are not too hard to buy online. When you do decide to invest in these, make sure that you do get adequate advice and have a trading strategy.
But the important idea to grasp is that saving will enhance your life in the future.