How can i save and beat inflation?

Question

i sold my cow and saved the money in a bank account some years back. yesterday i withdrew the money from the bank and all it could buy was a chicken. prices have changed so much.

with this trend is there a need to save? how can i save and avoid this kind of situation again?

Answer 1

keep your cows from now on and sell em in the future. hahaha

Answer 2

this is the type of attitude that got us in the Great Depression-saving...our GDP $14 billion is dominated by consumption 70% we want to keep the economy going spend...the way to be inflation is to raise interest rates but that will throw us into recession...we need consumer confidence in the economy...if consumption suffers then the gov will have to deficit spend to get out that means getting more loans from the chinese leads to more tax dollars on interest we already spending 400 billion on interest why do we need more.

Answer 3

Buy land at a low price .

Answer 4

Invest in gold, land, property, jewellery and index-linked securities.

Saving is a very bad idea in inflationary times. You should be doing exactly the opposite. Since the value of money decreases, it's sensible to take out large loans because their capital value will reduce in real terms over time.

So if you're expecting high inflation, your best bet is to borrow heavily and buy durable goods with it. Houses are a good idea, although that's a highly unfashionable thought at present. Wait until prices drop a bit more, then get in there. When the dust has settled, you'll own valuable property with a tiny mortage on it.

Answer 5

Saving in our current economy can be risky in any event, but commodities (gold, silver, oil, etc) are the safest, as their prices will tend to rise with inflation. Our Federal Reserve is constantly inflating the money supply, and will continue to do so. For Alby, cash is good in deflation, but I have NEVER seen deflation occur in my lifetime. In 1950, a 1 oz silver coin could buy 5 gallons of gas. In 2008, that same 1 oz silver coin will still buy 5 gallons of gas. In ancient Rome, a 1 oz gold coin could buy a nice toga, quality sandals and a belt. In 2008, that same 1 oz gold coin will buy a nice suit, quality shoes and a belt. Fiat money is the enemy of savings, as the value of the dollar will always decrease faster than the interest rate paid by banks in the absence of anything to back it, such as gold or silver. The Fed just prints more money, diluting the value of all money previously in existence. For more essays, visit

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As far as land, it's value is down now, due to malinvestment and very inflated prices in past years. Land also has the ongoing costs of paying property taxes, making it a less than ideal investment for savings, unless you plan on renting it out or otherwise offsetting the tax costs. In spite of what real estate agents may tell you, a home is NOT an investment, it is an expense.

Answer 6

Hard assets protect you against Inflation (ie: Gold, Land, etc)..

The reason is that when you go to sell them, your asking price will be inflation adjusted. During Deflation, you want to hold Cash. Cash is King in Deflation.

Answer 7

There is no such thing as a safe bet regardless if you put your money into a savings account or take it to Vegas, you are always taking a risk. The risk that you so eloquently stated for saving is that you would not get a higher return than inflation, but at the same time you wont lose everything. Depending on how old you are you should look at other options like bonds, stocks, 401k, IRA, etc. These alternatives have proved to beat inflation over the long term, if you are able to put money away tax free like a 401K you already have a head start. Overall remember that the return is a reflection of the risk you take.

Answer 8

Invest your money in commodities that are sure to keep their value, such as land or gold