How to beat inflation?

B_Blank

Hi,

So far I have invested in my education (going to start a post-grad course in my spare time at the age of 24), as I feel that is the best way to beat inflation - invest in yourself!

But other than that I am stumped. I have put 20% my money into investment funds. half of this are balanced income funds and the rest is in commodity funds, balanced accumalation funds and in a S/e Asia fund. I did this to try and headge my bets against inflation but am worried.

What are you doing to combat inflation? Tips and ideas are welcome!

Russe11

inflation, what inflation?

according to my method of calculation...

per clip sent into you been framed that gets aired, 15 years ago realised £250

today its still £250.

HappyMJ

Beat inflation by spending all your money now it'll only get more expensive as time goes on.

Loughton_Monkey

B_Blank wrote: »

What are you doing to combat inflation? Tips and ideas are welcome!

Absolutely nothing.

I cannot stop inflation any more than you can. Any more than Mervyn King can for that matter.

I'm sorry, but inflation 'happens'. We cannot combat it.

What we can do, though, is seek to invest our money in instruments that are likely to keep up their value at least in line with inflation. If/when that fails, the other option is to buy less 'stuff'.

DiggerUK

B_Blank wrote: »

...What are you doing to combat inflation? Tips and ideas are welcome!

At 24 you can best serve yourself by getting stoned, getting laid, and getting away with it.
Learning how to handle money is a good idea too.

Gold may not be on your radar, but I would urge you to research it for future reference. Buy a few Sovereigns for now and follow their fortune. You won't end up with a worthless piece of gold in your hand.
Gold is best thought of as a wealth preserver long term, not a wealth maker. Early life is about growing your wealth mainly.
Best of fortune.

cepheus

I would guess the best way to guard against inflation is to invest in the sectors which are driving it up at the moment: oil, grain etc. Trouble is if they come down......

Certain sectors are supposed to do well in times of inflation
http://www.investorschronicle.co.uk/Features/Shares/article/20100122/44a03bd6-0677-11df-9b61-00144f2af8e8/Winners-and-losers-in-inflation.jsp

Another method is to invest in high dividend companies, usual caveats apply
http://www.guardian.co.uk/money/2010/jul/27/stock-market-negate-inflation

sabretoothtigger

Russe11 wrote: »

inflation, what inflation?

according to my method of calculation...

per clip sent into you been framed that gets aired, 15 years ago realised £250

today its still £250.

That'd be wage or earnings inflation which unfortunately is not keeping up with price inflation of such things like oil

psychic_teabag

On monevator blog : http://monevator.com/2011/02/17/stop-inflation/

novazombie

DiggerUK wrote: »

At 24 you can best serve yourself by getting stoned, getting laid, and getting away with it.
Learning how to handle money is a good idea too.

Gold may not be on your radar, but I would urge you to research it for future reference. Buy a few Sovereigns for now and follow their fortune. You won't end up with a worthless piece of gold in your hand.
Gold is best thought of as a wealth preserver long term, not a wealth maker. Early life is about growing your wealth mainly.
Best of fortune.

Good advice and consider silver bullion as well as gold its much cheaper and better value.

C_Mababejive

B_Blank wrote: »

Hi,

So far I have invested in my education (going to start a post-grad course in my spare time at the age of 24), as I feel that is the best way to beat inflation - invest in yourself!

But other than that I am stumped. I have put 20% my money into investment funds. half of this are balanced income funds and the rest is in commodity funds, balanced accumalation funds and in a S/e Asia fund. I did this to try and headge my bets against inflation but am worried.

What are you doing to combat inflation? Tips and ideas are welcome!

I'll give you some advice from someone twice your age...

At 24..get out there and enjoy your life...

Start using male grooming products and always moisturise every day. By the time your 40,you;ll still look good.

Dont eat crap..

Dont drink too much

Dont get fat...

Dont get anyone pregnant..

Work towards buying your own home now but dont buy a flat or a shared ownership.

Find a nice girl who has a career and some common sense

Dont save loads of money as its a mugs game..its only pictures of the queen and of no use unless its swapped for other stuff.

The best form of defence is often retreat..

Dont think you can make a fortune dealing shares..

Dont get mad,get even..

cepheus

I'm not too sure. Financial security through investment can be quite liberating, and there are opportunities for the astute. It avoids becoming overdependent upon your employer and developing an unhealthy sycophantic attitude to your bosses. Try to enjoy your work, but don't become like the sickening backstabbing sociopaths on the Apprentice, it will make you and everyone else miserable!