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 should I do with my money if it goes up in value?
As a result, we sought advice from experts on how consumers should approach investing and saving during this period of rising inflation.
Invest wisely in your company’s retirement plan as well as a brokerage account.
How do you protect yourself from inflation?
If rising inflation persists, it will almost certainly lead to higher interest rates, therefore investors should think about how to effectively position their portfolios if this happens. Despite enormous budget deficits and cheap interest rates, the economy spent much of the 2010s without high sustained inflation.
If you expect inflation to continue, it may be a good time to borrow, as long as you can avoid being directly exposed to it. What is the explanation for this? You’re effectively repaying your loan with cheaper dollars in the future if you borrow at a fixed interest rate. It gets even better if you use certain types of debt to invest in assets like real estate that are likely to appreciate over time.
Here are some of the best inflation hedges you may use to reduce the impact of inflation.
TIPS
TIPS, or Treasury inflation-protected securities, are a good strategy to preserve your government bond investment if inflation is expected to accelerate. TIPS are U.S. government bonds that are indexed to inflation, which means that if inflation rises (or falls), so will the effective interest rate paid on them.
TIPS bonds are issued in maturities of 5, 10, and 30 years and pay interest every six months. They’re considered one of the safest investments in the world because they’re backed by the US federal government (just like other government debt).
Floating-rate bonds
Bonds typically have a fixed payment for the duration of the bond, making them vulnerable to inflation on the broad side. A floating rate bond, on the other hand, can help to reduce this effect by increasing the dividend in response to increases in interest rates induced by rising inflation.
ETFs or mutual funds, which often possess a diverse range of such bonds, are one way to purchase them. You’ll gain some diversity in addition to inflation protection, which means your portfolio may benefit from lower risk.
How can I plan for inflation in 2022?
During inflationary periods, stocks are often a safe refuge. This is because stocks have typically produced total returns that have outperformed inflation. And certain stocks outperform others when it comes to combating inflation. Many recommended lists for 2022 include small-cap, dividend growth, consumer products, financial, energy, and emerging markets stocks. Industries that are recovering from the pandemic, such as tourism, leisure, and hospitality, are also receiving a thumbs up.
Another tried-and-true inflation hedge is real estate. For the year 2022, residential real estate is considered as a safe haven. Building supplies and home construction are likewise being advocated as inflation-busters. REITs, or publicly traded organizations that own real estate or mortgages, provide a means to invest in real estate without actually purchasing properties.
Commodity investments could be one of the most effective inflation hedges. Agriculture products and raw resources can be exchanged like securities. Gold, oil, natural gas, grain, meat, and coffee are just a few of the commodities that traders buy and sell. Using futures contracts and exchange-traded funds, investors can allocate a portion of their portfolios towards commodities.
During inflationary periods, bonds are often unpopular investments since the return does not keep pace with the loss of purchasing power. Treasury inflation-protected securities are a common exception (TIPS). As the CPI rises, the value of these government-backed bonds rises, removing the danger of inflation.
TIPS prices rose dramatically in tandem with inflation expectations in 2021. To put it another way, these inflation hedges are no longer as appealing as they were a year ago. Savings bonds, which the US Treasury offers directly to investors, are attracting some inflation-avoiders.
What should you buy right now?
- Pasta! Our favorites are linguine, fettuccine, spaghetti, penne, and rigatoni in all shapes and sizes. Purchase a large quantity; it will last a lifetime. We’ll also get some tortellini and gnocchi, both frozen and refrigerated. Also, get some canned sauce.
- Food that has been canned. Are you familiar with this one? To make this dish, you’ll need canned tomatoes, canned coconut milk, and canned beans (black, pinto, refried, garbanzo). Find out more about the canned items we keep in our pantry.
- Eggs. They also have a long shelf life and are extremely versatile. A six-minute egg transforms even the most basic foods (such as a piece of toast) into a meal.
- We’re stocking up on fresh vegetables that last: cabbage, cauliflower, potatoes, and sweet potatoes. We’re going to get some bell peppers and mushroomsthey won’t last forever, but they’ll do for a while, so we’ll simply use them up first. Carrots can also be kept for a long time if peeled and stored in water in the refrigerator.
- Frozen vegetables We wrote a whole post on it, but for the sake of this grocery list, we’ll just repeat our favorites! We’re going to load up on frozen broccoli, kale, and spinach.
- Alliums! There’s a lot of garlic and onions in this dish. Shallots, onions, and ginger are also used. All of this will last for a long time. A word of advice: don’t keep them in the fridge. Put them in a dish on your counter and keep them there.
- Spices and seasonings This is a must. These are the magical ingredients that will add lift, sunlight, and brightness to your pantry meals in the coming weeks. Stock up on Italian seasoning, curry powder, chili powder, cayenne, red pepper flakes, Better than Bouillon (one tiny jar takes up a fraction of the space that a carton of stock does), cumin, smoky paprika, red curry paste, garlic powder, onion powder, and fresh herbs (keep parsley and cilantro in a bit of water on the counter to make it last). You may learn more about our five must-have spices by clicking here.
- Condiments. Make sure you have soy sauce, vinegars, mayonnaise, ketchup, and Dijon mustard on hand. In our house, too, sambal oelek chili paste is a requirement.
- Butters made from nuts. Although peanut butter merits its own category, we’ll also be stocking up on tahini.
- Fresh and frozen meats are at the top of our list, including steak, frozen chicken breasts and thighs, frozen sausages, frozen bacon, frozen ground beef, and frozen ground chicken. If you want a more comprehensive list, you can find all of our favorite frozen meals HERE.
- Fruit. Oranges, bananas, apples, lemons, avocados, and limes, as well as some frozen fruit! Blueberries, frozen, are at the top of our list.
- Treats! It’s almost as significant as the others. We’re stocking up on chocolate chips, flour, sugar, butter, cocoa powder, oats, raisins, and all of our other favorite baking ingredients, because if there was ever a time when frequent cookie baking and random just-for-fun cake-making were required, it’s now!
Why are the shelves in 2022 empty?
You’re not alone if you’ve seen empty shelves in your local supermarket: In 2022, food shortages are still a problem. President Biden warned of food shortages as a result of Russia’s invasion of Ukraine on March 24, 2022. Food shortages will be “real,” he predicted.
Should you invest in equities while inflation is high?
Consumers, stocks, and the economy may all suffer as a result of rising inflation. When inflation is high, value stocks perform better, and when inflation is low, growth stocks perform better. When inflation is high, stocks become more volatile.
Are bonds beneficial during periods of inflation?
Bonds’ deadliest enemy is inflation. The purchasing power of a bond’s future cash flows is eroded by inflation. Bonds are typically fixed-rate investments. Inflation (or rising prices) reduces the return on a bond in real terms, which means adjusted for inflation.