Inflation tends to dominate the financial news at times. It’s an easy talking point that people can relate to as they see gas prices or their grocery bill creep up. But there are plenty of ways to combat inflation. And you’re probably already taking advantage of some or all of these.

1. Wages rise with inflation

Historically, wages have increased with inflation. So there is a good chance your income will keep pace with inflation if you are working.

This may not always be the case in periods of unusually high inflation. But it’s important to keep a long term mindset when thinking about how inflation will impact you. Your salary should keep up over the long term.

This chart shows just how closely aligned the changes in wages and inflation have been since 1970:

2. Your mortgage payment doesn’t change, but your property value does

Housing is the largest living expense for most of us. And if you have a fixed rate mortgage, a major portion of this expense is protected from inflation.

Interest rates tend to increase in response to inflationary periods. But as rates increase, your mortgage payment remains the same.

Property values also tend to keep pace with inflation over the long term. So if you own a home and are looking to move to a new one, you’ll pay more as prices are on the rise, but the increase in value of the home you’re selling should help ease the blow.

The chart below shows changes in inflation against changes in home prices:

3. Stocks win in the long term

Investing in stocks is your best bet for keeping up with inflation over the long term. And if you have a long time horizon, you likely have a sizable portion of your savings in the stock market already.

You may hear that inflation hurts companies because of rising costs. But companies also have the ability to control their earnings to some extent by adjusting their prices and passing along those cost increases.

And even if the stock market takes a hit as inflation increases, it’s important again to keep a long term mindset. Stocks are still the best tool to use for long term growth.

You can see below that over long time periods, inflation has lagged the stock market.

So don’t panic when you can’t get away from the headlines. It’s likely not as bad as it seems.

Joe Calvetti is a CPA and the founder of Still River Financial Planning, a comprehensive, fee-only financial planning firm that specializes in working with young families and professionals. Click here to learn more about how we work with clients.

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Disclaimer: The information provided above is for educational purposes only and should not be considered financial, legal, or tax advice. You should consult with a professional for advice specific to your situation.