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CatLane / Getty Images/iStockphotoWhile the inflation rate is only one measure of economic stability, it is often a good indicator of how well Americans feel their finances are doing. The Federal Reserve Board likes to keep inflation at around 2% to maximize stability, but economic factors — like pandemics, consumer spending habits and interest rates — often drive that figure up or down.Be Aware: I’m a Financial Advisor: 5 Things the Middle Class Wastes Money OnLearn More: Here’s How To Become a Real Estate Investor for Just $1K Using This Bezos-Backed StartupWhile Americans can’t predict this rate or control it, it’s possible to set up your finances, particularly savings, when inflation pushes the cost of living up significantly, so that you’re prepared to absorb the extra costs.Financial experts recommended some tips for how to save (and invest and cut costs) so effectively that higher inflation doesn’t hit so hard.Earning passive income doesn’t need to be difficult. You can start this week.Start Saving ImmediatelyBob Chitrathorn, CPFA, CFO and vice president of wealth planning at Simplified Wealth Management, said there’s no shortcut to saving. The time to save is now, whether you’re in your first job or close to retirement. The more savings you have, the better.If that seems obvious, he added, “Unfortunately, people just aren’t used to saving and have to find various ways to do so.”Check Out: 6 Things the Middle Class Should Sell To Build Their SavingsChoose Investments That Get Ahead of InflationSaving doesn’t just mean putting money into a savings account, but it also means making investments.“A great way to not feel the bite of inflation is to make sure that your investments are growing more than the inflation rate,” Chitrathorn said.That was easy to do in 2020 when the inflation rate was 1.2%, but much harder to do in 2022, when the inflat …
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