This is an important audible for all to consider.
http://www.npr.org/2013/05/30/186450423/how-a-trip-to-costco-can-work-as-an-investment-strategy
Essentially, the report says that since interest on savings is almost ZERO, it may make more sense to actually stock up on essential products as a hedge against inflation. No, not hoarding, but if you use a product on a regular basis, it may be wise to buy that product in bulk now, rather than pay higher prices later.
For example, you see an add where pasta is for sale: Buy 10 for $1.00 each. You can afford to spend $20 for pasta, so you buy 20 packages. If pasta rises in price 10% over the course of the year, your investment has basically earned 10% interest. Where can you find that kind of a return?
You have to be a savvy shopper. Often, things on sale, really aren't. They'll raise the price on an item one week, they put it on sale to the normal price the next. Net gain, ZERO. Further, you don't want items that you almost never use. So take stock of the products you buy the most and keep an eye out for 'real' sales and good buys. Be sure to check any expiration codes. No sense buying something with one day left on the code.
Of this you can be certain, food prices will rise; petro based products will rise. If you have the space and a little extra money, stocking up may be the best investment you can make.
No comments:
Post a Comment