Inflation. It’s one of the financial buzzwords that has been mentioned in a lot of financial conversations lately. It also pops up when you’re out and about and businesses have raised their prices. In fact, lately inflation had an impact on prices at grocery stores, gas stations and retailers. Rod Lipka is a Financial Counselor and Educator with Lutheran Social Services South Dakota. Because you probably have a lot of questions about how inflation could affect your personal finances and investments, he’s here to help answer some of those questions and share some advice on what to do when it comes to protecting your cash.

Behind the scenes on set with Rod Lipka and Brittany Kaye

How to protect cash during inflation

1. Check on your finances more often

• Not all expenses rise at the same rate, gas costs may go up at a different rate than groceries or utilities

• Know where your money is going, tracking your spending will help you identify your options

2. Review cash holdings

• Determine the appropriate amount to have in your emergency fund

• You want this fund in a bank savings account

• This is for easy access and safety of the money

• This is not a place where you beat inflation

3. Get out of debt

• Credit card interest rates will go up as interest rates rise

• Paying down debt is a guaranteed rate of return

4. Try to increase your income

• You can cut expenses only so far, but there is no limit to how much additional income you can earn

5. A well planned budget gives you more options

• With the right cash safety net you have the freedom to be more aggressive with investments

• Financial flexibility is the key to beating inflation and having a plan for your spending is the foundation for that