How to Defend Yourself Against Inflation? JumpTask Solution: Part 1
Imagine losing $1,000 a year from your $10,000 savings.
That is what happens if inflation is 10%. The current rate at which prices are rising in the US is close to that figure. In some countries, inflation is even higher.
With inflation rising worldwide, the natural question is if there is anything regular people and investors can do to protect themselves. While people can do little to stop inflation, there are actions to take regarding personal finance.
Let’s see what inflation is, why too high inflation is harmful, and how JumpTask helps people navigate a highly inflationary environment.
This is Part 1 of our series on inflation —follow us, as Part 2 is coming out next week.
What is inflation?
Inflation is the general increase in the prices of goods and services in the economy. In other words, currencies such as the dollar or the euro become worth less. As a result, you can buy less products or services with the same amount of money as time passes.
Some inflation is not bad — in fact, many economists consider a small level of inflation to be beneficial:
- First, it helps businesses stay competitive and increase their profits, which incentivizes them to innovate and provide better quality products and services.
- Second, if prices decrease (deflation), consumers might delay their purchases and wait for prices to drop further. This slows down private consumption and economic growth.
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Central banks around the world usually have a target rate of inflation. For example, the US and the UK have a 2% target.
It becomes problematic, however, if inflation goes above the target. That is happening right now around the world.
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Why is high inflation a problem?
If inflation goes beyond the target, everything becomes more expensive. People pay more for the same products and lose their purchasing power.
At the same time, savings’ value drops. For example, when people are holding cash in the bank, it pays almost zero interest. As a result, inflation quickly erodes savings’ value as mentioned in the beginning of the article.
How high is inflation at the moment?
From the table above, it is clear that many countries are currently experiencing extremely high inflation:
For example, the annual inflation rate hit 9.1% in June in the United States, the highest in 40 years.
The rate is even higher for individual products or services that almost everyone is using:
- Gasoline: 59.9%
- Natural Gas: 38.4%
- Electricity: 13.7%
- Food: 10.4%
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While the exact figures for price rises vary depending on the country, the overall picture is clear: prices are rising fast, and consumers are losing out. The next question is: what can regular people do to support themselves?
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Increase Your Income
To keep up with inflation people must try to increase their earnings. While this won’t stop inflation, it will boost monthly income, which will help cover bills and other expenses.
Freelancing is a great option to earn on the side on various platforms such as UpWork or Fiverr. However, traditional gig economy marketplaces have a lot of barriers, which we discussed in our previous article:
JumpTask offers a platform where freelancers can complete simple microtasks in a way that minimizes transaction costs and offers flexibility. Users earn crypto tokens (JMPT) which can be later exchanged into fiat currency or used in staking to increase the returns on investment.
Everyone can create an additional source of income on JumpTask depending on their preferences:
- Passive Income: people can earn by simply sharing their internet bandwidth.
- Simple Microtasks: individuals can complete microtasks to earn money.
This year, JumpTask plans to introduce more earning types to help people create an additional source of income and support themselves during high inflation periods.
Taking Action Beats Inflation
As prices are rising globally, there is little an individual can do to stop prices from increasing. When it comes to personal finance, however, there are ways to deal with inflation: creating an additional source of income.
JumpTask is suitable for beginners joining the gig economy: they can start earning additional income easily. JumpTask provides a platform with multiple ways to earn — for everyone, anywhere in the world.
Enjoyed the article? Follow our Medium for Part 2 on Inflation: coming out next week.
TL;DR
> Inflation is rising across the world, exceeding targets set by central banks.> Inflation hurts consumers: they lose purchasing power due to an increase in prices.> Freelancing helps people support their personal finances; however, traditional platforms have many limitations.> JumpTask provides multiple ways to earn on the side and support monthly income easily.
Liking what you hear? Sign up on JumpTask. Invest in $JMPT. Join the revolution.
