IF PRICES START TO SPI­RAL

Health & Nutrition - - SELF CARE -

RE­VISE YOUR BUD­GET. In­crease es­ti­mates of costs that aren’t fixed, such as cloth­ing, travel, food and lux­u­ries.

SET ASIDE MORE OF YOUR IN­COME. You’ll need a big­ger nest egg to cover per­sonal emer­gen­cies, va­ca­tions and a child’s school costs.

BOOST IN­SURANCE COV­ER­AGE. Re­view your home and theft in­surance to be sure you have an in­fla­tion es­ca­la­tor; if not, you’ll need to add cov­er­age to ad­just for in­creased re­place­ment costs.

INVEST IN STOCKS OF WELL-MAN­AGED, FI­NAN­CIALLY SOLID COM­PA­NIES MAK­ING IN­FLA­TION-RESISTANT PROD­UCTS. Ev­ery­one will al­ways need as­pirin, an­tibi­otics, food and petrol, no mat­ter how ex­pen­sive they be­come.

CON­SIDER BANK FDS AND MU­TUAL FUNDS. FDs and Mu­tual Funds may be a los­ing deal when stocks are soar­ing and in­ter­est rates are low, but when rates rise ul­tra­safe FDs and gov­ern­ment bonds can pay. Keep time hori­zons small: With an FD, buy a oneyear lock in to get a good yield. Then if in­ter­est rates con­tinue to climb, roll it over to an FD with a higher yield when the orig­i­nal comes due.

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