The increasing prices of goods and services across the board have already stretched people's budgets. That's just called inflation. But during hyperinflation, things would get dramatically worse.
Financial planners and experts share their best tips and personal finance advice to prepare for any economic scenario, including hyperinflation.
“Economists typically define hyperinflation as a month-on-month increase of 50% or more. We're currently experiencing an uncomfortable but fairly normal inflationary cycle.”
A common misconception about hyperinflation is that it is something that could quickly occur. Just because the price of clothing, electronics, or gas dramatically increases does not signify inflation, much less hyperinflation.
If hyperinflation does hit, you want to be ready. Here are eight ways you can prepare for the worst.
No matter your financial situation, there are always ways you can make yourself and your family more economically secure. Review your budget to ensure you know how much money you'll need every month.
2. Pay Off Any Debt, Especially Those With Adjustable Rates
“I advise people to pay off any loan with adjustable rates as soon as possible. Interest rates will soar during hyperinflation, along with the rates on any variable loans or credit cards. So remove them right away,” said Porter.