In a high inflation market, savings can become eroded and many of us will not necessarily see the psychological barrier that we inadvertently put up – the figures stay but we may not see the loss. In order to overcome this, you can think about the following:
- Make sure you get the best return on your savings. Comparison websites don’t always show you the best rate but will still give you a guide of some of the best deals.
- Most banks have gone completely digital, with no branch or sometimes customer service teams. Overcoming this stigma can open a new world of not just better interest rates, but also ease of banking since digital is the future.
- Investing any spare money that you might have in long term assets such as stocks and funds will give you the opportunity for growth that either meets or exceeds inflation. Make sure you have an emergency fund of cash that you can invest for the long term. Investments can rise as well as fall and you may get back less than you put in, so it’s important to take advice from a professional before investing to have the best chances of success.