Inflation, how sweet is it? 3 Tips to Grow Your Money

CPI measures the weighted average of prices of a basket of goods over time. The changes in price of the basket of items are then used to measure the change in cost of living over time. The thing about inflation is its proclivity to become a self-fulfilling prophecy. So, what can anyone do? Here are some action items:
**Separately, do you have credit cards? make that call to get the APR down, no card company wants to lose you as a client! You might want to lose them altogether though. Use financial planning tools like Mint and Personal Capital which can help with managing your monthly expenses.
3. Invest: Build and/or stick to a disciplined investment strategy. If you do not have investments, use this opportunity to open a brokerage account or an Individual Retirement Account (IRA) to save for the long-term. An easy way to invest is to invest in exchange traded fund (ETF) and hold it for extended periods of time (i.e. years). Historically, this meant you would earn a positive return above inflation and it becomes more and more factual the further you go back in time. ETF’s are like buying a nice cold smoothie which contain lots of different fruits if you don’t want to buy a specific fruit (in other words, buy specific stocks).
If you do have these accounts established, remember to stick to a disciplined investment strategy, evaluate your exposures, and assess the implication of inflation on your assets. Are you well allocated to inflationary sensitive assets (i.e., assets that respond well in inflationary environments)? Inflation-Linked Bonds, Real Estate, Commodities, and equities tend to do well in inflation. Do not make any jarring decisions like putting all of your money in inflation-linked bonds. Remember, macro-economic conditions change. You should aim to create a portfolio that can withstand different macro-economic situations. However, it could be an opportune time to invest in these assets, if needed, to undermine the effects of inflation in your portfolio.
In summary, a little diligence, some vigilance, and planning will help reduce the effects of inflation on most aspects of your life.