The message that inflation is eroding our wealth because the banks here offer such measly interest rates for our savings has become quite pervasive. I am sure that the message has been good for sales in some industries too as many more people are worried now. I know my parents talk about it a lot more these days.
So, what do people do? They go hunting for higher yields. One of the easier things to do is to go to the banks and invest in products which promise yields which are much higher than the said interest rates. Many also go to the stock market to look for stocks, bonds or preference shares which offer yields that beat inflation.
In the hunt for higher yields, we might want to keep this in mind:
"Always remind yourself that investing is a long term activity. So, avoid the instant gratification of yield... think carefully about how you are getting that yield... ...
