Small Steps To Fight Inflation

The question on every American’s mine today is how to maintain the value of my dollars? Unfortunately, I do not hear present leadership addressing the issue of inflation and its effects on small investors. Stick our head in the sand and wait to see what happens to the dollar or start planning to ease the pain of inflation? Take inflation seriously, these little steps can help you

Here are a few of things that you can buy now at the dollar level of as a small investor. First, the U.S. Forever Postage Stamps, second, State quarters and third, foreign currencies will beat inflation. All are sound short-term investments returning a significant profit to the small investor.

This May 2008, first class U.S. postage is scheduled to increase again as it has continually due to transportation-increased cost over the past years. The Forever Stamp is now on sale at US Post Offices and promises to keep the current first class postage stamp rate frozen. So if you are one who uses the US mails you will net a gain form investing in the forever stamps now. Estimate how much money you spend on postage and calculate what the savings will be if the price for stamps increases ten cents and you can see why investing now is important. This stamps maybe your blessing.

Also the individual state quarters go out of production this year, the mint will end production of them shortly, hence, they become rare coins and become a value to collectors for their uniqueness. But do not wait until these quarters dry up to start collecting them, get started now. Saving these quarters may prove a future wise investment ten years out, barring you have stored them in their pristine condition. Holding complete fifty state sets is a great value one the little guy can afford. Many companies are charging substantial sums to send a different coin per month of state quarters to subscribers. Why pay twenty dollars a quarter for something you can have from your bank now for twenty-five cents. Also, the new golden dollars are selling for twenty dollars with a printed card describing the coin to lay collectors one can collect them also. *

Another small step is banking in foreign counties currencies. It may prove to be a wise move for the small investor to switch dollars to another currency as a way to avoid some immediate disasters from inflation. Buying foreign currencies like Euros or Swiss Francs is available at most large retail banks today, however, trading dollars for other currencies is at a variable fee so watch for the best prices. Safe deposit boxes to store your money until you need to change back to dollars may work out to be cheaper than the inflations we are getting on US dollars. Boxes start at around twenty dollars a year. Holding on to foreign cash may prove profitable over spending inflated US dollars in today’s economy why not give it a try.

Dwight W. Hayes, MS

* I think that golden dollars are a bad investment, because the coin has a mix of zinc and copper, no gold in it. However, this coins shall become unique when production stops and will retain its collector value based on its condition.