How does printing money affect savings?

If a government prints money faster than the growth of real output it reduces the value of money and this invariably causes inflation. Governments often resort to printing money when they cannot finance their borrowing by selling bonds. This hyperinflation can be extremely damaging to an economy.

Does printing money reduce its value?

By printing extra notes, a government increases the total amount of money in circulation. Everything costs more, thus our money is worth less.

How can I protect my savings from inflation?

It is possible to protect savings from inflation by investing in Treasury Inflation-Protected Securities (TIPS), government I bonds, stocks, and precious metals. Let’s say you have $100 in a savings account that pays a 1\% interest rate. After a year, you will have $101 in your account.

How can I stop dipping into my savings?

Another way to stop dipping into your savings is to reward yourself as you hit each milestone. Start with smaller rewards close together to help you build momentum, and then space them further apart and give yourself bigger rewards as you reach your goals.

Why can’t the government just print as much money as they want?

To combat the rising inflation the common solution is higher taxes and increased austerity measures. When people ask why they can’t just print as much money as they want and just remove taxes, the question will not be answered. This is because bureaucrats expect you and future generations to pay for all of the debt with interest.

How can I keep my money safe during an economic collapse?

There is no single “best” solution for keeping your money safe during an economic collapse. The best solution is probably a combination of all of the above. Keep your money in different currencies in many different places. When SHTF, it is likely that some of your money will still hold value and be accessible to you.