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Here's How Inflation Impacts Your Bank Account (And How To Take Advantage)

The article from MSN discusses how inflation affects personal bank accounts and offers strategies to mitigate its impact. Inflation reduces the purchasing power of money, meaning the same amount of money buys fewer goods and services over time. This affects savings accounts particularly, as the interest rates often fail to keep pace with inflation, leading to a decrease in real value of savings. To counteract this, the article suggests several financial tactics: investing in assets that historically outpace inflation like stocks or real estate; considering inflation-protected securities such as TIPS (Treasury Inflation-Protected Securities); diversifying investments to spread risk; and looking for banks or credit unions offering higher interest rates on savings accounts. Additionally, it advises on reducing debt, especially variable rate debt which can become more expensive with rising inflation, and reevaluating spending habits to focus on essential purchases, thereby saving more effectively. The piece emphasizes proactive financial management to not only survive but potentially thrive during inflationary periods.

Read the Full GOBankingRates Article at:
[ https://www.msn.com/en-us/money/personalfinance/here-s-how-inflation-impacts-your-bank-account-and-how-to-take-advantage/ar-AA1ALZA5 ]