Inflation creeps into every corner of your life, from the prices at the grocery store to the balance in your savings account. It’s a reality that can make you anxious about your financial future. While the broader economy is out of your control, you can take steps to protect yourself from the psychological impact of inflation.
The Anxiety of Inflation
When prices start sneaking up, it’s natural to feel concerned. The thought of your hard-earned money not stretching as far can create a lot of stress. This is especially true when the inflation rate—the rate at which prices for goods and services increase—accelerates.Recently, the inflation rate has climbed back up to 3.5 percent, which is decent, considering it was 9 percent two years ago. Ideally, you want the inflation rate to be at 2 percent, but the current rate is still high enough to make you concerned about your financial future.
