How to Protect Your Savings from Inflation’s Erosion

Inflation quietly eats away the purchasing power of your money over time. If your savings barely keep up with inflation, you may lose value in real terms. Thankfully, there are strategies to protect your savings, which are featured on SaveOurSavings.org.

Understand Inflation & Its Effects

When inflation is positive, items cost more each year — meaning the same amount of money buys less. If your savings yield is lower than inflation, your effective wealth decreases.

Use Inflation-Protected Instruments

Consider instruments like Treasury Inflation-Protected Securities (TIPS), inflation-indexed bonds, or accounts with variable interest rates that adjust with inflation.

Diversify with Equities & Real Assets

Stocks, real estate, and commodities often outperform inflation in the long run. Diversifying a portion of your savings into such assets can help preserve value.

Reassess & Rebalance Periodically

Every year, evaluate whether your portfolio still aligns with your goals and risk tolerance. Adjust your allocations to ensure you’re not overly exposed to inflation risk.

For calculators, learning modules, and inflation-aware savings guides, explore SaveOurSavings.org to stay ahead.