(MENAFN- Newsroom Panama) Guest Contribution – Sudden spikes in inflation, well, these have a way of forcing people to look for other ways to protect what their dollars can buy. As expenses keep climbing, just leaving cash in the bank doesn't quite work out-its value tends to slip away more than folks might like to admit. The US Bureau of Labor Statistics put out a number-a 4.9% rate year-over-year as of April 2023-which feels steep compared to what most of us were used to.

Maybe that's why people, not just big investors, have started to search for different streams-ideally ones that keep up or even, if luck's on their side, get ahead of inflation. These days, with platforms and markets popping up online, passive strategies aren't just stocks and brick-and-mortar properties. There's probably something out there for just about everyone. Online guides and resources, such as get more info here , highlight profitable strategies. If you check around, Bankrate or Shopify (and others) tend to say that mixing up your income sources is one way-possibly the safer bet-when things start to get unpredictable.

Dividend stocks and REITs offer resilient cash flow

Some investors still seem to pick dividend-paying stocks when they want predictable income. There's data showing S&P 500 companies paid out about $565 billion in dividends in 2022 (S&P Dow Jones Indices tracked that), which sounds impressive, but not every company keeps up with inflation or raises its payout each year. When firms do manage it, these dividends might at least help cushion the blow from rising prices-at least, that's the hope. There's an added bonus too: people can sell off these stocks if the market changes their mind, so they're not locked in.

Then there are REITs-that's real estate investment trusts-for folks who want a bit of property action without the headaches of leaking faucets or late-night tenant calls. The National Association of Real Estate Investment Trusts says US-listed REITs have managed about 9.6% average annual total returns over the last couple decades. Not a guarantee, but not too shabby, and they're required to pay out most of what they earn, making for frequent dividends. Depending on the market and timing, these investments-sometimes physical, sometimes digital-may resist inflation better than others (though they're not bulletproof). For a broader examination of strategies in this class, online materials such as get more info here provide step-by-step guidance and case studies from both retail and institutional investors.

Rental property income and niche asset rentals show strong inflation resistance

Rental real estate, for those willing to put in the work, offers a blend: possible appreciation and steady rent checks . Recent numbers from Zillow put the median US rent at $2,000 a month late in 2023-so rents, apparently, aren't slowing down, even as interest rates shift and the economy stutters. Landlords often adjust rent to keep pace with inflation-sometimes more, sometimes less, but rarely does it freeze in place. Not everyone thinks of this, but options like renting out a spare room or even a parking space can bring in solid extra income, and the barriers to getting started seem lower than they were a decade ago. Platforms such as Airbnb and JustPark have, for lack of a better word, made the process fairly quick.

Then again, there's been sharp growth in the supply of short-term rentals (over 20% in the past year, AirDNA says), although stricter rules-especially in big cities-are starting to muddy the waters. In tough economic times, raising rents can sometimes soften inflation's impact, but nothing's ever truly guaranteed. Managing properties still means, well, dealing with people and the odd bit of legwork, but the combo of (usually) stable returns and the chance for property values to grow looks appealing to plenty. Online sources including get more info here compile detailed case studies and practical tips for new entrants.

Digital income streams expand the passive toolkit

Somewhat under the radar, digital revenue options have taken off. For instance-it might sound odd-people buy and hold websites purely for the passive earnings from ads, affiliate links, or online shops. If you check Flippa or Empire Flippers, they mention multiples between 2x and 4x annual profits for established sites; so, while the up-front investment can add up, running the operation often takes less day-to-day work than building from zero. Of course, it's tied closely to web traffic and user interest, so things can swing around.

Others lean into creating blogs or YouTube channels. These spots take some slog at the start-those early posts and videos won't make anything overnight-but evergreen content may end up bringing in ad cash, sponsorships, or commissions for years. YouTube alone logged $29 billion in ad revenue for 2022, and the payout to creators keeps growing, at least for now. Compared to real estate or bonds, the barrier to entry and upfront cost is pretty low, but it doesn't come with any guarantees. Shopify notes that both blogging and YouTube can, under the right circumstances, scale well. Still, income from digital sources can be shaky compared to more traditional routes-sometimes great, sometimes less so-but given the automation and reach, there's potential.

Bonds and diversification protect against unpredictable inflation spikes

Bonds, with their regular interest payments, are the old standby. Reliable, that's the reputation. Yet inflation chips away at what those payments buy in real terms-something that catches folks off guard more often than you'd think. After the Federal Reserve hiked rates in 2023, newer bonds started to offer higher yields (two-year US treasuries, for example, hovered near 5% by April 2024 if the Treasury Department's figures are right). Want to take on more risk? Municipal and high-yield corporate bonds could be options, though the flipside-bigger losses if things go south-is always lurking in the background.

A lot of advisors point to“laddering”-spreading out maturity dates-to take advantage of changing rates and keep some flexibility. But honestly, bonds mostly do best alongside other assets. High-yield savings and CDs sound appealing for safety, but their returns usually lag behind inflation. As for digital offerings like dropshipping or print-on-demand, they're floating around too, yet these might take more hands-on marketing than some expect and don't always stack up well when inflation bites. Pulling pieces from both the digital and physical side, mixing things together-that may not solve everything, but it seems to give people a steadier footing when prices keep heading up.

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