Facing the inflation/Carlos Pueblo

Facing the inflation/Carlos Pueblo

The inflation is not avoidable and is a sign of the dollar diminished. Once the national economic runs into distraction, the Treasury will print more money into circulation to encourage the consumption, i.e. the 2.2 trillions stimulate funds to help fighting the recession of virus pandemic and another 3 trillions coming up next, etc. We can see meat prices are up a bit and the water melon price is up in compare with the same time last year. My method of facing the inflation is very simple for a simple family that is always budget ourselves well and more flexible with our expenditure.

I monitor my balance sheet all the time to be sure that I don't exceed my limit. I save money and find out some other pleasure than spending money. I am really not a good citizen to help the economic growth; however, I have avoid the stress of money issue. As I point it our regularly that saving and investment can help us to increase income as well as fighting the inflation. We can leave the inflation headache far behind if our saving plan works.

First, we accelerate our loan payments no matter of our income tax bracket that we can always find another loan to be beneficial for our tax filing. Second, we put to the maximum of retirement contribution to defer tax. We may run into higher tax bracket when we reach the age of the retirement. There is a way to get out of the early withdrawal in case of the urgent need such as systematically withdrawal for college funds of our children or buying a vehicle. Keeping our saving with mutual funds for example can fight the inflation. Let the funds managers fight the battle for you. It works.

I believe that the smartest economists are working for the Federal Reserve Bank and they can adjust the interest rate up and down in order to control the inflation and the deflation. All what we need to watch is our balance sheet to be sure that our expenditure is less that our incomes of all sources. I make the pasta every Saturday, the dumpling and the steam buns, to saving money and exposure risk of going out to pitch them in the restaurant. I pick up trashes of neighbors for my horticultural hobby. I have intense morning walk in stead of the cruise or foreign trips. I play tennis and swimming which are all free.

The stock market is up and down and I believe that the IRS has an interest of it. If it is up, the IRS will get more from me and vice versa if the market is down the government share of my retirement funds will be decreased as well. We are all together to fight the inflation.