With food prices, there are a few simple strategies to prepare for inflation. I believe it is prudent to begin preparing now and purchasing items before you require them. This is what I’ve been concentrating on recently. In its most basic form, a stockpile is just that.
Assume the price of toilet paper increases by 15% this year. That means the $10 toilet paper package you buy every month will soon be $11.50. That’s an extra $18 each year merely to buy the same toilet paper you were buying before. If you multiply that scenario by a number of things increasing in price, you’ll see a significant influence on your budget.
What if there isn’t any inflation? You’ll still be prepared and won’t have to purchase some of these products for a while. Because costs aren’t going down, you won’t lose anything. They may or may not increase at the greater rates predicted by some. If the hyperinflation predictions come true, you will have saved money for your family by purchasing items ahead of time while we wait for inflation to return to more normal levels.
“Buy one now, and two later,” as the old adage goes. Never let yourself get to the end of your food supplies.
Always be on the lookout and purchasing ahead of time. When you come across a good offer, buy as much as you can, especially non-perishables.
Personally, we are relocating funds from other sections of our budget in order to focus on purchasing some additional items right now. You should think about doing the same.
Are you trying to figure out what to buy before inflation? Here are a few essentials to stock up on before inflation kicks in.
Build a stockpile of non-perishable goods.
This is one of the most effective methods for anticipating inflation. Now is the time to stock up on items that will not expire or spoil. When I uncover good prices, I usually focus on establishing a food stockpile. Right now, I’m concentrating on accumulating a non-perishable food supply.
Build a stockpile of things you use regularly.
Expand your stockpile in the same way as before, focusing on the items your family utilizes on a regular basis. Don’t think about eating just yet. Concentrate on toiletries and other items that you use. Don’t buy goods you won’t utilize because it’s a waste of money. Consider stocking up on these items before inflation sets in.
Build a stockpile of foods your family eats.
The perishable products that your family consumes on a regular basis are the last section of your stockpile that you should concentrate on.
Purchase extras of the food items you use whenever you notice a good offer. If you have extra freezer space, concentrate on buying meat when you can get a good deal.
When it comes to canned goods and other packaged goods, buy only what you’ll use before they expire.
If you’re wondering what food to stockpile before inflation rises even further, consider the following:
Can you save a few dollars this week to purchase an extra roll of toilet paper? Or can you find some additional cash to buy a few extra diaper packages? Is it possible to buy four containers of dish soap instead of one? Keep in mind that anything you purchase now will assist you in planning for the future.
I just produced a printable PDF called “The Quick Start Guide to Building a Stockpile on a Budget” if you want to learn more about stockpiling. It’s jam-packed with useful hints, checklists, and more to help you create a stockpile even as inflation rises! More information can be found here.
What steps do you take to prepare for inflation?
Does the threat of hyperinflation keep you awake at night? Is inflation even a consideration for you? Perhaps your company is new, or you have never worked during a period of increased inflation.
The last time annual inflation in the United States exceeded 4%, as measured by the CPI (Consumer Price Index), was in 1991.
Since then, the CPI has averaged a 2.5 percent yearly increase for the last 20 years, from 1992 to July of 2012. Compare this to the previous 24 year period from 1968 to 1991, when inflation soared more than 6% annually. These are two completely distinct environments to function in. Are you prepared to face it?
Of course, not all economists believe that we are in the midst of a time of rising inflation, or, if we are, what would be the primary trigger. Ask three economists a question, and you’ll probably receive five different responses, as someone famously said. Many people believe that the Federal Reserve’s recent provision of massive amounts of liquidity and a big monetary base will result in excessive inflation. In his new book, The Age of Turbulence, former Fed Chairman Alan Greenspan predicts that the flow of people into the workforce in developing countries like China would decelerate, resulting in increased wage pressures and higher prices. He further claims that the impact will be global. ii Bill Gross, the manager of Pimco’s largest bond fund, has warned investors that more inflation is on the way as a result of central bank stimulus that has generated a “ocean of credit.” Mr. Gross predicts that this will develop gradually over time, and that it will likely persist for many years.
Inflationary pressures can wreak havoc on your organization, slashing profits and lowering valuations. How are you going to prepare for inflation? What options do you have?
Inflation Preparation: Here are ten steps you can do right now to protect yourself from future increases in inflation:
- Debt with a variable interest rate. Convert your adjustable or variable rate term loan or other debt to a fixed rate now, while interest rates are still low. If inflation begins to grow, the Federal Reserve will raise interest rates to offset the trend. Greenspan forecasts double-digit interest rates in the next years in his bookii.
- Contracts for supply. Examine your supply chain connections and contracts, and extend long-term fixed price agreements to lock in excellent quality suppliers now. This is especially true if you’re buying commodities, which tend to react to inflationary pressures first and fastest. Agreeing to inflation rate modifications is a no-no.
- Contracts with customers. Examine your client contracts to ensure that you have the flexibility to alter pricing as needed to pass on increasing costs, or even better, that you can raise rates at any time with little warning.
- The cost of living rises. If the market and your contracts allow you to raise pricing today, consider a little increase every six months or so to stay ahead of the curve. Start re-pricing each new project if you have a custom business. If you bundle products, think about switching to an unbundled strategy in the future to help your customers cope with price increases.
- Reduced costs. Redouble your efforts to cut costs from the company. You’ve undoubtedly been doing some of this for a while, but now is the moment to revisit those investment opportunities you passed on previously because “you didn’t want to spend the money.” In a period of strong inflation, future savings will be multiplied.
- Purchase assets. Consider borrowing today to purchase core productive assets or a new firm, then repaying the debt with cheaper currency later. Long-term leases with today’s low rates are a viable alternative to taking out a loan.
- Rent. Consider long-term extensions to lock in low rates while you can if renting your facilities is still the best option in your situation.
- Employees. Make sure you have a good balance of full-time and contingent workers. As cost or competitive constraints dictate, you’ll be able to be more flexible in the future. Also, if you have collective bargaining agreements, try to eliminate or reduce the impact of cost-of-living provisions. Non-union staff should be moved entirely to a performance-based compensation structure, with no merit increases across the board.
- Customer service is really important. If you do have to raise pricing, make sure your customers have plenty of other reasons to stick with you rather than price shop. Investing in excellent customer service can be a low-cost way to maintain market share.
- Collections. Now is the time to take care of any outstanding collection difficulties. Customers, particularly distributors, will try to stretch out contracts and use your money to run their business during inflationary times.
It has been suggested that economic forecasters exist solely to make weathermen seem good. So you’ll have to decide for yourself whether or not we’ll see big inflation in the future. However, if you believe such is the case, there is no need to lose sleep over it. You can start planning your strategy for preparing for inflation today so that your company’s worth is preserved tomorrow.
What should I have on hand in case of a food shortage?
Top 27 Foods to Have on Hand in an Emergency
- Protein. These dietary items are high in protein and can be stored for a long time.
What should I buy in anticipation of inflation?
Experts advise keeping some essentials in your kitchen and pantry at all times. You’ll be able to buy fewer new goods each week if you do this.
Eggs, pasta, rice, bread, canned tomatoes, frozen vegetables and fruit, onions, and potatoes are some of the most beneficial items to have on hand, according to Leanne Brown, author of the self-care cookbook Good Enough.
If you have the space, consider purchasing these items in bulk to save money over time.
These items can be used to make a variety of meals, and they can also be used as the basis for a variety of others.
Will food costs rise in 2021?
Grocery costs had a poor year in 2021. According to the consumer price index, shoppers paid 6.4 percent more for food in November 2021 than in November 2020. All food costs were higher than usual, but meat prices were the most striking, with pork costing 14 percent more than a year ago and beef costing 20 percent more.
What should I do to prepare for hyperinflation in 2021?
Food and water may become more difficult to obtain in the future, which is difficult to accept when you have hungry mouths to feed. Consider dedicating a piece of your property to gardening and fruit tree planting to assist you and your family stay afloat. Alternatively, if you have the funds, you may need to purchase more land with a water supply on its property.
How can I plan for inflation in 2022?
With the consumer price index rising at a rate not seen in over 40 years in 2021, the investing challenge for 2022 is generating meaningful profits in the face of very high inflation. Real estate, commodities, and consumer cyclical equities are all traditional inflation-resistant assets. Others, like as tourism, semiconductors, and infrastructure-related investments, may do well during this inflationary cycle as a result of the pandemic’s special circumstances. Cash, bonds, and growth stocks, on the other hand, look to be less appealing in today’s market.
Do you want to learn more about diversifying your investing portfolio? Contact a financial advisor right away.
What investments do well in the face of inflation?
- In the past, tangible assets such as real estate and commodities were seen to be inflation hedges.
- Certain sector stocks, inflation-indexed bonds, and securitized debt are examples of specialty securities that can keep a portfolio’s buying power.
- Direct and indirect investments in inflation-sensitive investments are available in a variety of ways.
How does a three-month supply of food look?
Now that we’ve demonstrated why you should devote the time and resources to putting together your food pantry, let’s move on to the next step. Let’s get to work on creating the ideal strategy for you. When creating your short-term food storage strategy, keep the following factors in mind:
- Time – How much time do you have? Are we making meals from scratch or using pre-made mixes?
- Finances – Can you afford to do everything at Costco in one go? Or will you have to gradually stockpile your cupboard by buying a few extra goods each week?
- Do you have someone in your life who has particular dietary requirements? Is it a baby? Teenager? Allergies? Make sure to include them in your strategy.
Designer Plans for Building a 3 Month Food Supply
Don’t get worked up about it! If we take it one small step at a time, we can even cook an elephant. Relax and have a peek at how some of our friends have stocked their cupboard with common goods. Every household is different, and different storage solutions are best for different people.
Two Week Menu Plan
Create a two-week meal plan. Begin by asking each family member what their favorite meals are. McDonald’s is not an option, therefore leave it off the menu, along with any other fast-food favorites!
Menus should be built around shelf-stable items. While some frozen meals are OK, the majority of the contents should come from shelf-stable, easy-to-store goods.
Let me give you an example of one of our family’s favorites. Spaghetti with meatballs, green salad, green beans, and garlic bread is a delicious meal, especially when served with a slice of cheesecake on the side.
Pasta, canned spaghetti sauce, green beans, ranch dressing mix, mayonnaise, powdered milk, and no-bake cheesecake are all shelf-stable items. We have frozen meatballs and bread dough in the freezer, which will last us three months. Because fresh green salad does not keep well, it may or may not be available. Without that, dinner will be OK.
Make a list of the ingredients for each of the recipes you collected from your family survey. There should be 14 entrees for breakfast, lunch, and supper. We couldn’t think of 14 different breakfast ideas, so we used 7 breakfast meals and doubled them. Multiply each ingredient by seven to get a three-month supply of everything you’ll need to prepare this dinner.
This strategy, once adopted, can alleviate a lot of “what’s for dinner” anxiety. Depending on the season, your menu may change slightly. In the winter, we eat differently than we do in the summer.
Plain Old Math
This strategy is based on simple math. It simply does not get any simpler. You’ll need 90 breakfast entres, 90 lunch entres (optional), 90 dinner entres, 90 fruits/vegetables/side dishes, and, of course, 90 treats or desserts to feed your family with this strategy.
You’ll also need a good supply of basic ingredients like flour, sugars, baking powder, baking soda, salt, vegetable oil, shortening, spices, cornstarch, vinegar, bouillon cubes, and so on. The goal is to preserve what your family eats on a daily basis so you never have to worry about wasting food and always have what you need. For a family of six, here is how it may look.
- 30 boxes cereal, 3 #10 cans powdered milk, 10 pounds complete pancake mix, 3 bottles maple syrup, and 30 muffin mix packets for breakfast A good addition would be juice mix or hot cocoa. You can mix it up whatever you like. You should have 90 extremely basic breakfasts in total. If you like, you can use fresh milk and store the powdered with your long-term storage.
- Lunch – Many people prefer to skip lunch while planning their day. For adults, this is fine, but not for youngsters. 30 cans of SpaghettiOs, 30 cans of mandarin oranges, 30 cans of chili, 6 boxes of crackers, 30 boxes of macaroni and cheese, 30 cans of green beans, and enough drink boxes for each child to have one a day are all that is required. Simple, standard fare that you’ll be rotating through anyway.
- Dinner 15 cans of pasta sauce and pasta packages, 15 boxes of Hamburger Helper, 15 cans of soup and 5 boxes of crackers, 15 packages of rice mix, 15 packages of gravy mix, and 3 #10 cans of potato flakes, 15 cans of Chunky Soup and 30 pounds of rice, 90 cans of meat or 1 pound packages of frozen meat, 90 cans of vegetables, and 90 cans of fruit You can customize the menu in any way you like. Shop the discounts, but make sure you have the essentials on hand.
- Comfort foods – Treats are essential! What makes you feel better when you’re under a lot of pressure? Everyone’s situation is unique. Include 10 cake mixes, 10 frosting cans, 10 brownie mixes, 10 cookie mixes, 5 boxes of graham crackers, 30 Jell-O containers, and 30 pudding packages. For 90 days, one goodie per day. With your basic ingredients, add a #10 can of powdered eggs, powdered milk, and oil.
Tiffany’s Super Simple Plan Part Math Part Menu
Tiffany and her husband both work full-time and have a one-year-old daughter. They live in a hot region and don’t have access to a basement. They eat out once a week and have basic meals. They came up with a scheme that cleverly blends both the basic math and the menu plan after examining their lifestyle.
Their primary concern was ensuring that their youngster was well fed. Her 90-day supply is calculated using simple math.
Because fat is essential in a toddler’s diet, shelf-stable milk is a better choice than non-fat powdered milk at this time. She also keeps a three-month supply of baby vitamins on hand.
Lunch is frequently leftovers or lunches given by the workplace. They keep an extra 12 boxes of instant oatmeal on hand for Dave’s lunch because he eats two packages of oatmeal every day at work.
At dinnertime, the menu element of the plan kicks in. Tiffany calculates the ingredients for a dozen of their favorite dishes and keeps enough for three months in the freezer. A fruit smoothie is her go-to comfort food. She makes certain that she has plenty of frozen fruit on hand. They keep plenty of frozen shredded cheese, pepperoni, turkey sausage, and other ingredients on hand because pizza is Dave’s favorite comfort food.
Betty’s Box-a-Week Plan
Betty, one of our dear friends, devised a brilliant approach that works brilliantly for her family. She organizes shelf-stable ingredients into a labeled office storage box that holds breakfast and dinner ingredients for a week. Apple boxes work great as well. The contents and dates of the boxes are meticulously labeled. By counting her boxes, she knows exactly how much food she has.
She is unconcerned about any ingredients that may have been mistakenly utilized for another dish. In an out-of-the-way location, the boxes stack well on top of each other. Rotation is a simple process. She removes a box from the shelf and places the contents in her pantry. The empty box is refilled and relabelled with a new supply. With each spin, she refines her menu and records changes on the side of the box.
Healthy Harvest
Our family follows the healthy harvest plan, as well as a meal plan made by Jon using a spreadsheet. It necessitates a large time and energy investment and is not suitable for everyone. We believe it is the healthiest, most environmentally friendly, and least expensive method of obtaining food.
A large vegetable garden, as well as fruit trees, berry bushes, and grapevines, are all grown on our property. For fresh eggs, we keep a few chickens. We bottle, freeze, dehydrate, or keep the abundant produce in a root cellar.
We blend all of those lovely fruits and veggies with our longer-term food supply of rice, beans, pasta, and freshly baked bread. With the addition of a freezer full of frozen meats, we had a great and nutritious meal for our family.
We don’t strictly adhere to our menu. Depending on what’s ripe in the garden or what I’m in the mood for, we switch it up.
If you want to learn how to cultivate some of your own food, take a look at these articles.
Meals in a Jar
Chef Tess, also known as Stephanie Peterson, is one of my favorite chefs. The Meals in a Jar Handbook: Gourmet Food Storage Made Simple is her book. This approach can work well for you if you have an extremely busy life.
Chef Tess has included meals for 4-6 people for breakfast, supper, and dessert. Each recipe’s dry ingredients are put into a quart jar and sealed with an oxygen absorber. The jars will last 5-10 years on the shelf.
You may have to put in several hours to make your meal jars at first, but it will be worth it when dinner time arrives. You simply count the amount of jars you have prepared and are set to begin with this approach. 90 breakfasts, 90 dinners, 90 desserts or snacks, and possibly 90 bread jars will be included in a three-month supply of meals.
It’s in the Bag Fast Food Storage
It’s safe to say that it’s in the bag. Another innovative option to develop your three-month supply is to take a new approach to food storage. Saving time every day is a fantastic idea for a busy household.
Each meal’s components are packed in a reusable gift bag with the recipe printed on the front in a CD sleeve. When you want to create a meal, you simply grab a bag and dinner is ready in 30 minutes. 90 breakfast bags, 90 lunch bags (if wanted), and 90 dinner bags are needed for a three-month supply. It’s that simple.
Collect your favorite quick and easy recipes and make duplicates. You’ll need one copy for each time you want to consume that meal. Tape the recipe to the front of the gift bag in a CD sleeve. All ingredients should be measured into a Ziploc snack-sized bag: a can of spaghetti sauce, a bag of noodles, a can of green beans, and seasonings. If the recipe calls for water, make sure you have enough water bottles in the bag.
Place the bag with the others to be refilled when it has been used. Everything, including the Ziploc bags that held the spices, is reused. Michelle and Trent Snow, the authors of It’s in the Bag, recommend using conventional tap water when it’s available and reusing the unopened water bottles in another bag.
Some ingredients, such as meat or shredded cheese, can be kept frozen.
Simplest Plan Yet No Math
I use a variation of this strategy… but don’t tell Jonathan, who is an engineer who enjoys doing math. To him, this proposal would be unconscionable folly. But it works for a female who isn’t fond of numbers.
To make this strategy work, you’ll need a large pantry or storage area. You get a broad idea of how much food you consume in a given period of time throughout time. The storage area should be well-organized and divided into broad groups. As an example;
In the pantry, each category has a permanent labeled home. Labeling shelf space for some things inside a category may make sense. Once you’ve set it up, you’ll be able to see when you’re running low on something at a glance.
Taking a snapshot of an item and placing it behind where the item belongs is a typical practice in warehouse management. It is very obvious when an item is missing, and it also aids others in remembering where the item belongs.
Sanitation Supplies
One thing we didn’t mention is that, in addition to a three-month supply of staple foods, you should also have a store of non-food personal things. A few suggestions are provided below.
- Toilet paper, toothbrushes, toothpaste, dental floss, mouthwash, hand soap, body wash, bar soap, shampoo, conditioner, deodorant, feminine hygiene products, diapers, and baby wipes are just a few examples of hygiene supplies.
- 90-day supply of vital medications, pain relievers, cold/allergy meds, anti-nausea/anti-diarrhea medications, and vitamins
- Bandages, antibiotic cream/ointment, hydrocortisone cream/ointment, hydrogen peroxide, rubbing alcohol, and burn gel are among the first-aid items.