Higher prices and inflation are all over the headlines and you might be wondering how concerned you should be. Unfortunately this is one of those times where you might be tempted to overreact as you try to take control of a situation. It makes us think of when someone is diagnosed with cancer- yes there are instances where you need to immediately treat it, but there are also cases where it’s best to not take any drastic measures and instead just monitor the situation. We want to avoid the kneejerk reaction and the ‘just do something!’ mindset, when instead there are other steps we should be taking. So that’s what we’re talking about today- why we’re experiencing high inflation, how concerned we should be, and then the many different steps that you should consider in order to keep yourself from freaking out over inflation.
- Looking back at over 100 years worth of inflation data helps put things in perspective.
- The WSJ inflation calculator was pretty limited and Bureau of Labor Statistics inflation report might be too detailed, so pick your poison!
- Extra cash – And regardless of where you are on the path to financial independence, we believe in the responsible use of credit cards. It’s smart to utilize the additional benefits that credit cards offer- for instance the 60,000 points that come with the Chase Sapphire Preferred Card. That’s $750 when you redeem through Chase Ultimate Rewards! This is no joke- I’ve already done this myself which we discussed on a recent episode after I met the initial spending requirements of $4,000 over 3 months!
During this episode we enjoyed Chocolate Pecan Porter by Temblor Brewing- a big thanks to Ryan and our friends there at the brewery for donating this delicious craft beer to the podcast! And please help us to spread the word by letting friends and family know about How to Money! Hit the share button, subscribe if you’re not already a regular listener, and give us a quick review in Apple Podcasts or wherever you get your podcasts. Help us to change the conversation around personal finance and get more people doing smart things with their money!
Best friends out!
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