Experts Explain Hyperinflation and 8 Ways to Prepare and Protect Your Money 

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.

What is 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.”

Hyperinflation is complex. Every country's economy is different and has its own unique path that could lead them down into this nightmare scenario.

Why Does Hyperinflation Occur?

However, common underlying causes of hyperinflation include: 1. a rapid increase in the supply of money without a currency backing such as gold 2. a rapid rise in the demand for goods and services

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.

Common Hyperinflation Misconceptions

8 Ways to Prepare for Hyperinflation

If hyperinflation does hit, you want to be ready. Here are eight ways you can prepare for the worst.  

1. Shore Up Your Finances

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. 

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