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Top Investment Strategies to Combat High Inflation

The United States is no stranger to the struggles that come with inflation, from prices rising in grocery stores all the way to the simplest of items necessary for raising your children, inflation hits us all where it hurts most: our wallets.

That’s why you should make the most of your money and have it work for you by making the most of your investments. There are a myriad of options out there for making your dollars last, and while it can be difficult to figure out what investment options are right for you, there will always be an option that will work for you.

By investing your hard-earned money in multiple places, not only are you securing a better chance at protecting your money’s value, but you’re also potentially saving your future self the strife of financial struggle.

We’ll begin with the easiest place to start.

High Yield Savings Account

High-yield savings accounts are one of the safest places to keep your earnings, and because of the high interest rate, it aids in protecting your money’s value.

These types of savings accounts are also the lowest-risk option for investors, and you always have access to your ever-growing funds.

It’s best to open a high-yield savings account before a large blow to the market or an inflation spike, but there is never a wrong time to open one. Just be sure you choose a bank that is FDIC insured to secure guaranteed protection for your funds up to 250,000 dollars.

Exchange-Traded Funds

In a vein similar to mutual funds, you have exchange-traded funds, which are similar to the former in the way they handle their holdings, the level of professional management involved, the lower risks, and the access to various asset classes.

The high liquidity exchange-traded funds have in the stock market combined with the typically low expense ratio adds to the overall allure of investing in them, and if it all gets to be too much, you can always hire investors to look after your exchange-traded funds for you.

Treasury Inflation-Protected Securities

Treasury Inflation-Protected Securities, or TIPS for short, fall pretty closely in line beside your typical bond. TIPS are designed to mirror inflation, and increase the interest rates for each bond when inflation goes on the rise, and only lower them again to mirror the market.

These are some of the safest investments you can make because they are government backed, and one of the easiest types of securities to use to diversify.

Because they’re specifically designed to protect you and your investments during times of unforeseen inflation, they are often viewed as one of the easiest investments to start with when considering long-term investments and trying to combat current inflation.


Bonds are a good way to protect your money in both the long and short term. Experts recommend having a variety of savings bonds, but you can also turn to other short and long term bonds when attempting to combat inflation.

With short-term bonds, you’re able to keep your money as safe and as in-pace with inflation as possible without withdrawing and keeping it in cash. With long-term bonds you give yourself a worthwhile long-term investment, but don’t necessarily have the same level of liquidity that you get with short-term bonds.

I bonds are another type of bond that is specifically designed to protect you and your investments during modern inflation spikes. These are typically the most popular choice in terms of bonds.

Your Own Business

Sometimes the best investment is to invest in yourself and start a business. Creating your own company from the ground-up and relying on your own capability during times of high inflation is a good way to ensure your money is being spent right.

Starting your own business and potentially bringing on investors during tougher times in the market could increase your business’ overall chance of success, as most small businesses struggle to survive during high inflation periods.

Real Estate

Investing in real estate and your properties is regarded as an expert financial move during high inflation spikes.

Property values generally increase along with inflation, and you have a few options in this branch of investing.

You can look into home ownership, though we recommend waiting until the market is low to buy or rent, and sell your home, or homes, when inflation is high again to turn a profit, and avoid losing potential income from your sale.

However, if you’re looking for a safer and easier option, delving into mutual funds that deal exclusively in real estate investment trusts might be the option for you.

Precious Metals

Because gold and other precious metals don’t lose their value overtime, it’s a good idea to invest in gold to keep with you if you’re planning for your financial situation in the far future.

Investments in gold and precious metal is a classic method of protecting yourself from inflation. Because the overall value and trade value aren’t necessarily impacted by inflation, you also secure a chance that your gold’s value could keep up over decades.

Though like most other investments, like real estate and other commodities, it may be wiser to buy gold when prices are at their lowest, rather than when inflation is at its peak.


Similar to investing in precious metals, you should also seriously consider investing in different types of commodities.

When prices increase, you can turn toward commodities, though they are more commonly used as indicators. However, these investments are known to keep pace with inflation, and generally increase in price when inflation rises. 

Though when positives are set aside, you will find that commodities can also be volatile, and should proceed with caution. Experts recommend investing in raw materials, such as metal, oil, and rubber, when other commodities, such as livestock and types of food and drink, go on the rise price-wise.

Mutual Funds

Mutual funds are generally a good investment for those of us who are more hands-off about the fate of our stocks and bonds.

However, it’s important to invest in the right mutual fund for you. You will be able to choose between four main categories, each with their own separate reports and risks. Even though the safest mutual fund for short-term inflation spikes isn’t a guarantee, it’s still one of the most-trusted places to put your money when inflation is on the rise.

Go With the Highs and Lows

Investors have one tip to keep on your mind every time inflation begins to creep over the horizon. Never panic buy or sell. 

Keep a level head when dealing with the market and your investments, and use the time to review all of your investments and their performance. Good luck out there, and happy investing!

Michael Morris

Michael is a Commercial Real Estate Investor turned Blogger. He founded Pursuit of Passive Income with the goal of helping its readers achieve financial freedom by starting an online business, which he believes allows people to create a life they love.