Veterans, you have served your country, and now it is time to take care of you. One of the ways to do that is to make sure you are financially prepared for inflation.

Inflation can significantly impact your finances, especially if you are not prepared for it. That is why we put together this list of finance tips specifically for veterans! Follow these tips, and so you can deal with inflation head-on!

What is Inflation?

(Source: Jernej Furman/Flickr)

Inflation is a rise in prices over time. It occurs when the cost of goods and services rises, making it difficult for people to afford the things they need. Inflation can significantly impact your finances, especially if you are not prepared for it. That is why it is crucial to understand what inflation is and how it can affect you.

Several factors can contribute to inflation. These include:

  1. Increases in the cost of goods and services. This can be caused by a rise in the cost of materials, labor, or shipping.
  2. Changes in the money supply. When the government prints more money, it can cause inflation because there is more money chasing the same number of goods and services.
  3. Economic growth. When the economy grows, prices tend to rise as well, because businesses can charge more for their products and services.
  4. Demand-side pressures. This happens when there is an increase in demand for certain goods or services, which can lead to higher prices.

Inflation can have a number of consequences for veterans and their families. Some of these include:

  1. Higher costs for health care and prescription drugs. Inflation can lead to increased costs for medical care and prescription drugs, which can be difficult for veterans who are on a fixed income.
  2. Reduced purchasing power. As prices rise, the value of your money decreases. This means you will be able to buy less with your money than you could before.
  3. Difficulty saving money. Inflation makes it harder to save money because the value of your savings decreases over time. This can be a particular problem for veterans who are living on a fixed income.
  4. Increased debt levels. Inflation can also lead to increased debt levels, as people find it harder to afford the things they need without going into debt. This can be a problem for veterans who are already struggling financially.

Start Building Your Emergency Fund

Emergency Fund
(Source: pix4free)


In order to deal with inflation, it is necessary to have an emergency fund. This fund will help you cover unexpected expenses that may arise in the event of high inflation. Here are a few tips on how to build an emergency fund:

  1. Start small: It is important to start small when building your emergency fund. This will help you stay motivated and not get overwhelmed. Try starting with $500 or $1,000.
  2. Automate your savings: Automating your savings is a great way to make sure you are putting money aside for your emergency fund each month. You can do this by setting up a recurring transfer from your checking account to your savings account.
  3. Make it a priority: Make saving for your emergency fund a priority in your budget. This means you should be willing to cut back on other expenses in order to make room for your emergency fund.
  4. Stick to it: It is important to be disciplined when it comes to saving for your emergency fund. This means you should resist the temptation to spend the money that you have saved.

Diversify Your Sources of Income

One way to protect yourself from the effects of inflation is to diversify your sources of income. This means having multiple streams of income coming in rather than relying on just one source. This will help ensure that if one source of income dries up or is impacted by inflation, you still have others to fall back on.