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A Reason to Worry….Or A Call to Action?

Even the wealthiest among us—those with earnings over $200,000 or a net worth over $3 million—still worry about money.

Their biggest fear: Inflation.

Inflation is, indeed, a ravenous creature that eats into our cash like a caterpillar on a leaf…slowly, methodically, little bits at a time.

For years, however, inflation has stayed quite low.  But that’s rapidly changing.  The Wall Street Journal just announced, “US inflation hit its highest rate in more than six years.” And inflation is expected to keep escalating.

Is it time to start worrying? Heavens NO!  The worst response to climbing costs (or most anything else for that matter) is to go into fear, which tends to have a paralyzing effect.

Instead, look at rising inflation as a resounding call to action…no matter how much or how little money you have.

The only way to counter the ravages of rising prices is to make sure at least some of your savings is working harder than it would in a bank. How? By investing in assets that grow faster than what inflation takes away.

Now is the time to make sure your money is well diversified. Here’s the standard rule of thumb for investing wisely:  

  • Money you need in the next three to five years–for emergencies, unexpected expenses, or short-term goals–should be in cash or cash equivalents like money market funds, CD’s, or short-term treasuries.
  • Money you’ll need in the next five to ten years should be in a mix of stocks and bonds.
  • Money you won’t need for ten or more years should be mostly in stocks and perhaps commodities and real estate.

You can’t eliminate inflation. But you can do a lot to protect yourself from it.

Tell me about your biggest money fear. Leave a comment below.

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Comments & Feedback

  • Colleen Ritt

    Hi Barbara,
    My biggest fear is retirement. I am 54 and I need to save 600,000 in the next 10 years which I know I can do as this is my last year with three kid’s in college but I know what I need to do however it causes me great anxiety! I am a realtor and I love what I do and I know can exceed my plan. We really miscalculated the cost of in state public university as no idea it would cost 28,000 per year per child and all three of our children in college at the same time. They take the FASFA student loan and work but it is still an additional 10,000 per child we pay per year and the recession really set us back as many others. I am healthy and plan to work until at least 70. I feel many women are in my situation but no one cares to discuss.
    Thank you,


  • Lisa Izumi

    My biggest money fear being stuck in a job where I’m being berated or harassed or in a relationship that’s unloving and does not serve me well, however I have to stay because I can’t afford to leave. So basically it’s lack of choice due to lack of money.

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Meet Barbara Huson

When a devastating financial crisis rocked her world, Barbara Huson knew she had to get smart about money… and she did. Now, she wants to empower every women to take charge of their money and take charge of their lives! She’s doing just that with her best-selling books, life changing retreats and private financial coaching.

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