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10 ways to hedge your income against inflation in 2025


Published on 2025-02-22 10:41:33 - businessday
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  • Treasury bills (T-bills) and Federal Government Bonds provide a risk-free return that helps preserve income value. The one-year

The article from BusinessDay Nigeria outlines ten strategies for individuals to hedge their income against inflation in 2025. It suggests investing in real estate as property values and rental income often rise with inflation. Another method is to invest in commodities like gold, which traditionally hold value during inflationary periods. The article also recommends Treasury Inflation-Protected Securities (TIPS) which adjust their principal according to inflation rates. Diversifying investments into stocks, particularly those of companies with strong pricing power, can also serve as a hedge. Other strategies include investing in inflation-indexed annuities, increasing exposure to foreign currencies, and focusing on sectors like energy and agriculture which are less affected by inflation. Additionally, it advises on reducing debt, especially variable rate debt, and enhancing personal skills or education to increase earning potential. Lastly, the article encourages entrepreneurship or side gigs to create multiple income streams, thereby providing a buffer against the eroding effects of inflation.

Read the Full businessday Article at:
[ https://businessday.ng/news/article/10-ways-to-hedge-your-income-against-inflation-in-2025/ ]
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