How to Protect Your Finances from Inflation

As inflation rates rise to levels not experienced in over 30 years, you are seeing a spike in the cost of everyday essentials such as food, gas and housing. Maximizing your savings rate is becoming more important as your purchasing power declines. You may want to review the way you handle your finances to help protect the value of your money.

What is inflation?

Inflation is the general increase of prices for goods and services over time. It is also described as a loss of purchasing power or a decline in the value of money. That means your dollar will not go as far today as it did in the past.

Invest some of your savings

If you have savings in excess of your emergency fund, you may want to consider investing some portion of your money, which may offer the potential for higher returns.

UCU GICs provide a ladder of increasing interest rates based on the length of investment terms. You earn a higher interest rate the longer you invest your money. The latest UCU GIC rates can be found here.

UCU Wealth Strategies can provide expert advice on investing in mutual funds or the stock market.

Put your money in a high-yield savings account

Most savings accounts in Canada pay very little interest but UCU offers our Members a higher interest rate virtual account.

To boost your savings – consider opening a high-interest savings account like ucublu or an investment account like a TFSA. Set up automatic contributions directing part of your income to your savings or investment account and watch your savings grow.

Take a look at your household budget           

Review your monthly budget – income, expenses and savings – and see if you can trim some expenses to create more savings. If you don’t have a budget, now would be a good time to create one – it will help you stay on track to achieve your financial goals.

Consolidate your debt

If you have personal debt from many sources such as multiple credit cards, and student or car loans then consolidating your debts into one lower interest loan could save you money. A UCU Consolidation Loan may help simplify your debt repayment process by consolidating your bills into one monthly payment.

Visit your local Branch or contact UCU Wealth Strategies for more information.