Is Your Money Keeping Up With Inflation?

In today's unpredictable global economy, you obviously never know what is going to happen next. Uncertainties and concerns regarding the Iraqi threat, North Korean crisis, and hidden terrorist cells and networks continue to loom in the back of the minds of consumers. Moreover, the stock markets and industries around the world.

Price inflation is another major concern for everyone. The latest Consumer Price Index (CPI) number released by the U.S. Department of Labor's Bureau of Labor Statistics states that prices, in all U.S. cities, are up 0.1% in the month of December for the calendar year of 2002. The Consumer Price Index (CPI) is a program that produces monthly data on changes in the prices paid by urban consumers for a representative basket of goods and services. Furthermore, the national unemployment rate continues to remain steady at 6.0% for the month of December 2002. Believe it or not, this may not be as bad as it sounds.

Economic theory suggests that an increase in the inflation rate will lead to a decrease in the national unemployment rate. But since the unemployment rate is currently 6.0%, this may also suggest that in order for this rate to eventually decrease, we should expect more inflation in the future. The recent upsurge in oil prices together with precious metals supports this theory and may also be a hint of what's to come.

Well, it seems that you probably can't avoid inflation, but there are definitely opportunities that you can take advantage of, in order to keep up with it. One option might be to consider depositing your money into a savings account rather than a money market account. Most major banks are currently yielding an Annual Percentage Yield (APY) that ranges from 0.5% to 0.75%. Even though this is pretty low, it is higher than what most money market accounts are currently offering.

One of the best rates that I have recently seen is ING Direct's offering of 2.25% APY for their Orange Savings Account. But if these rates are not what you are looking for, consider investing in the stock market. With the latest downturn in the economy, shares are pretty cheap and going fast. There are now many online brokerages that allow consumers to purchase stocks for a small fee. For instance, Sharebuilder lets consumers invest for as little as $4. However, please be wary, this investment option is a greater risk so you should consult with a financial advisor before taking this step.

Whether you choose to put your money in these investment opportunities or not, it is up to you. But just remember that if you don't, you are actually losing money because the "purchasing power" of your dollar is decreasing as the inflation rate is increasing.

Carlos T. Fernandez is the business columnist for Dominican Times Magazine, a publication that focuses on the hispanic culture and the issues affecting its communities. He is also the publisher of a popular financial planning and management website entitled Building Wealth (http://buildingwealth.blogspot.com).

---

Profit from Your Own Information Empire!

Would you like to profit from your own information empire?... Read More

Q and A: Financial Independence Tips For Women From Coni Cecil

As a woman Netpreneur, I sat down via e-mail with... Read More

Budget Tips

To budget, to have a budget and to be on... Read More

Retirement Planning the Offshore Way

Retirement Planning the Offshore Way Why do so many of... Read More

The 11 Best Money Saving Ideas of All Time - Part 1

At any time in history, no matter what the current... Read More

Personal Finance Rules to Building Wealth

Key 1 Pay your self firstkey 2 Saving is not... Read More

The Truth About Setting Up A Wealth-Pump Business: The Passive Income Myth Exposed

In theory the idea of generating additional (and passive) business... Read More

10 Ways To Find The Money Hiding In Your Paycheck

No matter how tight things are financially for you; no... Read More

Financial Planning for Beginners

Financial planning at an early age may seem complicated, however... Read More

Financial Freedom for Every Employee

You may think you have to be an entrepreneur to... Read More

The 11 Best Money Saving Ideas of All Time - Part 4

At any time in history, no matter what the current... Read More

How to Save Money and Take the Vacation You Always Wanted

Many people don't realize how much money they spend on... Read More

Endowments and Endowment Shortfalls - What You Need To Know

Endowments and endowment mortgages have received a lot of bad... Read More

Thought Creates Reality Even When It Comes To Money

What if I told you that reading a book would... Read More

The 11 Best Money Saving Ideas of All Time - Part 2

At any time in history, no matter what the current... Read More

Warren Buffet: Wisdom from the Worlds Richest Investor

In light of the dominant mindset overshadowing the market these... Read More

Retirement ? Can You Afford It?

Every day you work is one day closer to your... Read More

Asset Diversification Is NOT Boring?And Will Make You Money

OK, this article will start with the cheapest piece of... Read More

The Financial Equation that Will Set You Free!

I have a good friend who works in an area... Read More

Who Wants To be A Millionaire?

How many people search Google, Yahoo and MSN each day... Read More

What is Your Creative Retirement Plan?

The idle are a peculiar kind of dead that cannot... Read More

Investing is About Discipline

If you don't have discipline then walk away from the... Read More

Prosperity

An ellipsis to your success is hidden in the word... Read More

Wealth Creation - Opportunity

When young men ask me how to succeed, I tell... Read More

Easy Ways to Save $1,000

Vacation season is upon us and it can be tempting... Read More

Building Blocks of a Financial Foundation

You can't build a house from the roof down, and... Read More

My Ambitious Niche - A Completely NEW Way To Find Ambitious Wealth

Turn to the year 1999, a couple of friends sitting... Read More

Investors - What Separates the Good Traders from the Bad Traders?

There are many forms of investing online. While I can... Read More

One Pipeline Is Worth A Thousand Paychecks

It is with great pleasure of having you here at... Read More

Learn How to Bank Like a Banker

The business of banking has changed dramatically over the last... Read More

Learn To Budget

Do you like so many others feel, that even if... Read More

Have You Ever Had That Feeling?

Have you ever had that feeling where you could not... Read More

Is Your Money Keeping Up With Inflation?

In today's unpredictable global economy, you obviously never know what... Read More