Inflation might feel like an intangible idea, but its effects on your finances are tangible. Simply put, your money buys less as inflation rises, meaning that what you can buy for £100 today might cost £110 next year. While this phenomenon is a normal economic process, failing to plan for it can erode your wealth. The good news? There are methods to preserve and increase your funds in inflationary times.

One of the best defences against inflation is putting your money to work. The stock market, housing, and valuable commodities tend to appreciate over time, often exceeding the rate of inflation. While holding funds in a traditional account may appear risk-free, it usually doesn’t earn enough interest to keep up with rising costs. By spreading your portfolio across different assets, you can help your wealth stay resilient, maintaining – and even growing – its value.

Another strategy is boosting your earnings. Learning new abilities, upgrading your qualifications, and developing side hustles are strong tools for improving financial flexibility, giving you more financial flexibility. Staying informed about inflation and adjusting your financial plan accordingly is essential. By pairing intelligent investments with income-focused tactics, you can keep up with personal financial rising costs and protect your wealth for the long term.