HOW TO PREVENT YOUR FINANCE FROM DEVALUATION

This is a topic that I've had in mind for sometime, thinking of the best way to keep my funds, in prevention of devaluation and fear of loosing out. I am sure I'm not the only one who has thought about this considering what is going on and I decided to write about it. I'm writing this from my own point of view and experience, feel free to drop your thoughts and opinions, if you have other ideas, its much welcome.

The topic above has two key words and that's money and devaluation. As we all know, money is a form of currency that's been used to trade between people or nations. Money can also come in as a form of assets which can be traded. Different sovereign countries have their currencies, but the currencies which is been used and accepted globally in any form of trade or payment includes Euro, Pounds, Dollars, Yen just to mention few. Devaluation on the other hand is the reduction or underestimation of the worth or importance of something; it's the deliberate downward adjustment of the value of a country's money relative to another currency, group of currencies, or currency standard. In this case, we will be looking at our Finance. We have series of questions we will be tackling which are WHAT ARE THE CAUSES OF CURRENCY DEVALUTION? ARE THERE BENEFITS OF DEVALUATION? IF YES, HOW AND WHY? IF NO, HOW DO WE PREVENT OUR SAVINGS FROM DEVALUTION. These are the questions we will be be answering with vivid explanation in a simple manner for better understanding.

CAUSES OF DEVALUATION
There are different reasons and causes for devaluation and one of them includes Government policy of a state (Politically and economically). Devaluation is a decision that makes a currency lose value which is mostly done by government, its a monetary policy enforced by a government. How a country's currency is been devalued bores down to different reasons and one of such is how a country is producing internally and trading externally in relation to other nations. It depends on the independent survival of a nation. When a country imports most of basic items and export few of her products, there tend to be dependent on other country and when that is reversed, it causes a devalue of its currency. Other reasons why a country devalue her currencies are foreign reserves (these are the amounts of foreign currencies that the Central Bank of a nation maintain/keep to support the Naira and enable supply of foreign currencies to companies and individuals that need them), mainly to shrink trade deficit, boost export and discourage imports, and reduce sovereign debts. Another reason is the law of Demand and Supply. More money in circulation, less value, less money more value.

ARE THERE BENEFITS TO DEVALUATION?
Devaluation breeds inflation. How devaluation is beneficial entirely depends on individual perception and how it favors one. If you are very familiar with the Nigerian currency, you will know what I'm talking about. For those who earn in naira and in turn buys a product or services after exchanging it to dollars or pounds or any other foreign currencies can attest to the fact that its not beneficial to them in anyway. This simply means, there will be increase in the price of commodities and services rendered and which has effect on the market. For some who earns in Pounds, Dollars, for example may not relate to the those who do in naira but above all, one thing is sure and that is, there will be an inflation which is generally affected by everyone. Inflation is neither good nor bad but its about keeping money regulated for money not to be over supplied, when there is so much money, there is inflation and when low, no inflation. Inflation is more present in our fiat than crypto. Inflation is neither good or bad.

HOW DO WE PREVENT OUR SAVINGS FROM DEVALUTION
To protect your savings from inflation and possible devaluation, first determine your goals, time frame and willingness to take risks. It depends on how and where to invest. It also depends on the duration of your intention in saving. Are you doing this for a long term or short term.

Here are practical ways to build an edge against the devaluation of your currency, protecting your income and wealth from negatively affected.

SAVING YOUR MONEY IN DIFFERENT CURRENCIES BY DIVERSIFYING. Save your money in different currencies rather than in your local currencies. For example the naira, and Ghanaian cedes has seen an 100% increase within one year. The price of this currencies are doubled the price already. Imagine saving your money rather than local currencies, you have made profit already. Diversify your savings in other currencies
CRYPTO. If you know me, you know I'm a lover of Crypto because of its endless benefits. Crypto serves as a way of savings, earning and investment. However you want to get yourself involved in Crypto, you are never losing out. While investing in Crypto, you can diversify your funds in different tokens and coins or choose a particular coins. Preferably you can save it in the fiat digital currency of Euro or Dollar and that is Usdt. Personally, I save my funds most in Bitcoin because it has proven itself to be worthy. By worthy I meant, it has increased sporadically from its early time of inception and adoption, it has given great return of investment capital. You can decide to save in Ethereum, Usdt or Busd as the case maybe. The awesomeness about saving in Crypto Bitcoin is that, it is universally accepted as a currency for trading locally and internationally. In terms of emergencies, like war, impromptu movement, unfavorable government policies etc, its always available as you can move along with it to any place and have easy access to it without thinking of making physical time and appointments in receiving your funds. Investing in cryptocurrency is very easy and fast as credible websites and mobile apps such as Binance have simplified the process. Click the link https://accounts.binance.me/en/register?ref=39528190 for registration and to get started.
SAVE IN PRECIOUS METALS. Precious metals in this sought includes Gold, Diamonds, Real Estates etc, just to mention few. Gold has been a valuable source of wealth and prices no doubt has increased tremendously. The value of money was tied to Gold until the second half of the last century. Real Estate gained momentum in the 19th century. Saving your funds in any of these assets is also a win for you as it tends to appreciate over time.
In all of this, it is important you invest your money in things that are highly secured and can stand the test of time, one which has low volatility. By saving you are investing. Ensure to save in assets than liabilities. Assets are things that brings one money, liabilities spend money. So, if you are a Nigerian or you are living and earning in Naira, Ghana Cedis or you find your currency constantly reducing value, then you should key into investing in any of these assets. You may also not need to wait till your currency starts changing, you can ape in regardless. I hope this was helpful. Share your thoughts and share if you found this insightful.