10 Things You Can Do Right Now to Protect Against Inflation

Looking for ways to put your money to work? Read on.

Adam McFadden | JANUARY 28, 2022 | Updated: March 16, 2022

There’s no doubt about it, inflation is here in a big way. So how can you put your money to work to stay ahead of it? The good news is there are some things you can do to protect and possibly grow your money in an inflationary economy. We cover some of these suggestions below for those who are looking to make the best use of their money during this time of high inflation.

Key Takeaways

Inflation can be a challenge for everyone, especially those with little to no exposure in the stock market or a lot of extra cash sitting around.

Taking steps to lessen the impacts of inflation on your finances is key, whether it’s through investing or cutting costs.

The ultra-rich know that diversification across several different asset classes that outperform the market during inflationary times is key. These could include alternative investments like contemporary art, real estate, peer-to-peer lending, and more. 

Diversify With One of the Most Inflation-Resilient Alternative Assets

Investing in art can provide a hedge against inflation, according to research from Bank of America. That’s because art correlation to other asset classes is extremely low. The firm’s Chief Investment Strategist expects inflation to surge and recommends investing in real assets, like art, as protection. The annual price appreciation of contemporary art has outpaced the S&P 500 by 164% over the last 25 years.

That’s why over two-thirds of ultra-high-net-worth collectors allocate at least 10% of their overall portfolios to art, on average, according to Deloitte. For the rest of us, there’s a new alternative investing platform called Masterworks. Now you can diversify your portfolio with multimillion-dollar paintings1 by artists like Banksy and Picasso without needing millions. With over 350,000 registered users it’s one of the most exclusive platforms to join.

Pay Down High-Interest Debt

Many credit cards have variable interest rates, meaning when the Feds raise the federal funds rate, your interest rate on your credit cards are likely to rise with it. The Feds have already stated they will most likely be raising the rate more than once in 2022 to combat inflation, so now is the time to start paying down any high-interest credit card debt.

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