As inflation continues to rise, it is critical to review your savings and investment strategies to protect and optimize your wealth. To get 2024 off to a good start, here are 10 resolutions to make to get the most out of your finances.
Do a regular financial review
In this context of high inflation, the first step is to take stock of your financial situation every quarter. This allows you to monitor and adjust your investments according to economic changes and make informed decisions.
Dare to diversify your investments
To minimize the risks associated with rising prices, consider diversifying your investments: real estate, stocks, bonds, mutual funds, etc. By spreading your assets among different supports, you get better protection against inflation and market fluctuations.
Invest in real estate
Investing in real estate can be an excellent solution to counter the effects of inflation. There are various options such as buying a primary or secondary residence or even an SCPI (property investment company) that allows you to hold shares in rental properties.
Bet on stocks
Shares are also an attractive option to protect your savings against inflation. Companies tend to pass price increases on to their earnings and stock prices.
Encourage long-term investment
By choosing long-term investments, you will be less exposed to market fluctuations and benefit from greater growth potential. Index funds (ETFs) or even innovative mutual funds (FCPIs) are examples of investments that are likely to generate attractive returns over a long period of time.
Opt for inflation indexed investments
Some financial products are designed to protect you from the harmful effects of inflation. Inflation-indexed bonds (OATi in France) thus adjust their nominal value and their coupon according to price changes. This makes it possible to maintain a constant purchasing power.
Regularly evaluate the performance of your investments
It is important to regularly monitor the performance of your investments to quickly identify weaknesses and opportunities for growth. This includes comparing returns against various benchmarks and studying future economic prospects. Do not hesitate to seek professional help with your portfolio analysis if needed.
Streamline your spending
In the face of inflation, controlling your spending is essential to maintaining your purchasing power and increasing your savings capacity. So don’t forget to make a preliminary budgetby integrating non-reducible expenses (rent, insurance, etc.) and identifying items where savings can be made.
- Sort through your subscriptions and choose cheaper deals if possible.
- Prioritize shopping on sale or on sale to reduce your spending.
- Optimize your journeys by using public transport, carpooling or combining purchases.
Prepare for your retirement now
Factoring in inflation is essential to properly preparing for retirement. If you haven’t factored in this reality, general price increases can erode your standard of living after retirement. So consider subscribing to a Retirement Savings Plan (PER) or investing in specific investments to prepare for this move with peace of mind.
Don’t be afraid to ask for advice
If you’re new to finances or struggling to decipher the full implications of inflation for your situation, don’t hesitate to seek the help of a professional financial advisor. He will be able to guide you towards solutions that best suit your goals and support you in developing your wealth strategy.
in totalPersistently high inflation reminds us how important it is to remain vigilant about the evolution of our finances. By adopting these 10 resolutions, you will put all the odds in your favor to protect and grow your savings over time in the face of an uncertain economic situation. So don’t wait and implement these best practices now to succeed in your 2024 financial year