With inflation on the rise, many households are revisiting how to save, invest, and spend their hard-earned money. In a recent MLive article on how to budget for higher prices, Anastasia Wiese, JD, CFP® shared best practices for sustaining your investment stamina during inflationary times.
First, it’s important to maintain, if not add to your existing savings and investing. “When money gets tight, [people] automatically give up savings first and that’s not the best strategy,” said Anastasia. “When you’re in a little bit of a market decline or correction time, that’s actually the best time to be putting money into the markets because you’re buying stocks on sale.”
You’ll also want to avoid the temptation to jump in and out of different investment angles based on changeable market conditions. If you do, “you really have the opportunity to hurt yourself more than help yourself.”
Instead, Anastasia advises investors to: (1) define a comfortable level of investment risk and expected returns for their goals, (2) tailor their investment mix to reflect their goals throughout the stages of their life, and (3) stick with their strategy through good times and bad.
For more ideas on spending, saving, and investing in inflationary times, read MLive’s complete article here.