Sep 28th, 2012 by Jennifer Lynn
Me again, on the couch, nibbling on a hunk of zucchini bread, with locally grown zucchini and blueberries, and trying to capture my breath. My little butterbean is blessedly asleep and it is during these quieter moments that I try to pen some musings.
And it is quite common for my thoughts to drift to finances and, in particular, on this night, to saving.
In this turbulent economic climate of nonexistent interest rates, savers are financial losers, which is why I believe it is so important for savers to shift their surplus into tangible assets which retain value or even appreciate.
I view my financial surplus (my savings) as tiny financial seedlings that—if prudently planted and nurtured—will one day grow and transform into mighty, fruit-bearing money trees.
Right now the biggest hurdle to wealth creation is finding fertile soil and a suitable planting ground in order for those first precious seedlings of savings to thrive properly.
Surplus held in a traditional savings account is rapidly losing value due to paltry interest rates and the corrosion of purchasing power. Hard-working families not completely strapped down by bills are now faced with a further challenge: how to store financial surplus, their savings, in a manner which will retain its value.
Some solutions I ponder over; storing a percentage of savings in precious metals, numismatics, antiques, collectibles and art, one’s own business (entrepreneurship), strong stocks wielding dividends (requires heftier principles), alternative currencies.
These all have inherent risks and are niches which require research and a certain level of awareness and expertise. Nowadays folks are being shaken out of passivity and forced to be more creative and knowledgeable in order to remain ahead of the insidious inflationary beast.
It is wise to choose a few niches and then become acquainted and comfortable with them until you’re a well-informed expert. (And, fortunately, there is a plethora of knowledge available online and at the local library.)
I would love to hear your thoughts. How are you combating inflation during this prickly era of suppressed interest rates?