Inflation is down from its peak, but consumers' wallets have already been dented like a Mitsubishi Mirage getting T-boned at an intersection. In November, food prices increased by 10% over the previous year. Eggs have gotten so expensive that instead of posing with their sports car for their dating app photo, guys are taking pictures holding a dozen cage-free, large organic eggs. (If they're not, they should be. Am I right, ladies?) Higher prices are putting a major crimp in a lot of people's lifestyles. In order to neutralize inflation, you have to either earn more or spend less. Fortunately, there are easy solutions to both, and it doesn't require you to stop enjoying the things you like to do. Earn More A lot of investors were spooked out of stocks by the bear market last year or by the threat of recession this year. That's a huge mistake. Stocks go up over the long run. We know this has always been the case, so don't bail on the market. If you have money that you absolutely need within three years to pay bills, keep that out of the market, as anything can happen in the short term. Longer-term money should remain in stocks and bonds. If you stay invested, you are much less likely to have similar money problems in the future that you may be having today. Give it time, and let the market do what it does best, which is grow wealth by roughly 10% per year. For your cash, don't keep your money in the bank unless you're getting a great rate. Most banks pay bupkis. These days, it's incredibly easy to move money around different financial institutions to ensure your cash is earning the highest return. The highest-yielding savings account available right now is through MySavingsDirect, a division of Emigrant Bank. The account pays 4.35%, and you need only a $1 minimum deposit. Popular Direct is next at 4.26% with a $5,000 minimum, and UFB Direct pays 4.21% with no minimum deposit. There are quite a few banks offering rates of 4% or higher on savings accounts. |
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