What causes inflation, and how can I protect myself from it?

Hey there! Great question. Inflation is essentially the increase in prices of goods and services over time. It occurs when the purchasing power of a currency falls due to various factors like increased production costs, high demand, or excessive money supply.

To protect yourself from inflation, here are a few tips:

1. Invest in Real Assets: Consider investing in assets like real estate or commodities such as gold, which tend to hold their value well during inflationary periods.

2. Stocks: Investing in stocks of companies that can raise their prices to keep up with inflation can be beneficial.

3. TIPS: Treasury Inflation-Protected Securities (TIPS) are bonds issued by the U.S. Treasury that are indexed to inflation and can help safeguard your investments.

4. Diversify: Spread your investments across different asset classes to reduce risk and minimize the impact of inflation on your overall portfolio.

5. Increase Income: Consider investments that generate regular income, like dividend-paying stocks or rental properties.

Remember, it’s important to stay informed about economic conditions and adjust your investment strategy accordingly. If you have any more questions or need further clarification, feel free to ask!

Feel free to share this info with anyone who might find it helpful or ask more questions. Happy to help further!