How do you protect your money from inflation?

With the persistently high inflation rates in Egypt, many citizens are wondering how to protect their savings.

The latest data of the Egyptian Central Agency for Public Mobilization and Statistics showed that inflation increased by 2% during the month of June 2023, and increased on an annual basis to 36.8%, compared to 14.7% for the same month of the year 2022.

How do you protect your money from inflation?

1- Investing in fixed assets: You can invest in fixed assets, such as real estate, land, buildings, shares in public companies, and other assets that increase in value over time, and can protect your money from the impact of inflation.

2- Investing in gold: Gold is a natural resource that retains its value in the long term, and is one of the most popular ways to protect money from inflation.

3- Investing in foreign currencies: It is possible to invest in foreign currencies, which maintain their value in the long term, and are less affected by local inflation.

4- Investing in bonds: It is possible to invest in government or corporate bonds, which are considered safe financial instruments that protect funds from declining purchasing value.

5- Investing in investment funds: It is possible to invest in diversified investment funds, which contain a group of different assets, and help reduce investment risks and protect funds from the effects of inflation.

Basic tips to protect your money from inflation

• Reducing credit and borrowing: 

Increasing interest rates on loans leads to an increase in debt and credit costs. The high costs of debt exacerbate inflation and make it difficult to achieve the desired returns on investment.

• Maintain a diversified investment portfolio: 

Funds must be distributed over a variety of financial assets, and be careful to invest in the same investment class, which may be greatly affected by market movements.

• Investing in real estate investment funds:

 These funds allow investors to invest in real estate without the need to buy real estate directly. These funds are ideal for high returns and protection against inflation.

• Investing in Commodities: 

You can invest in commodities such as oil, gold and silver, which hold their value over the long term and are used as protection against inflation.

• Investing in the Stock Exchange: 

It is possible to invest in the Stock Exchange and stocks, which may achieve high returns in the long term, and provide protection from the effects of inflation.

Actions you can take to protect your money from inflation:

1- Keeping money in banks, which offer high interest rates: These deposits help achieve high returns and protect money from the effects of inflation.

2-   Investing in futures contracts: It is possible to invest in futures contracts on commodities such as oil, grains, and metals, which allow investors to obtain commodities at predetermined prices, and protect funds from the effects of inflation.

3- Investing in public investment funds: allows investors to invest in a variety of financial assets, such as stocks, bonds, real estate shares, and raw materials.

4- Control the cost of living: Money can be preserved from the effects of inflation by controlling daily costs, such as the costs of rent, food, travel, entertainment and other activities.

5- Investing in commercial real estate: It is possible to invest in commercial real estate such as commercial buildings, warehouses, and offices, which are real estate that can provide high returns and protect money from the effects of inflation.