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Prior to 2022, a lot of people may not have put much thought into the concept of inflation. Over time, the cost of living generally tends to rise. And that's a natural thing. But this year, the pace of inflation has been truly out of hand. And as such, many consumers have had no choice but to raid their savings accounts and rack up debt on their credit cards to make ends meet.
Unfortunately, there's little consumers can do to avoid spending extra on essential bills these days. But investing giant and Berkshire Hathaway CEO Warren Buffett says there's one thing people can do to protect themselves from the impact of inflation.
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It's all about growing your job skills
At a recent Berkshire Hathaway shareholders meeting, Buffett said that one of the best ways to safeguard yourself in the face of inflation is to grow your job skills and rise to the top of your field. Specifically, Buffett said it's a wise idea to be "exceptionally good at something."
The reason? Job skills, unlike currency, are inflation-proof. And if you possess a skill that's in high demand, it's likely to remain in demand no matter what the value of a dollar looks like.
Job skills, Buffett insists, can't be taken away from you. And inflation won't erode them. So if you invest in yourself, you might buy yourself great protection during times when living costs are up. That's because you'll have the option to command the salary you want -- as long as you can prove you're worth that higher wage.
Which job skills should you focus on growing?
There are different types of job skills it pays to boost. First, think about the skills that are integral to your specific line of work. If you're an IT professional, that could mean learning a coding language that's been increasingly adopted. If you're a tax professional, make sure you're up on the latest tax strategies and rules. And if you're a marketer, make sure you're well-versed in the latest trends.
Then there are soft skills -- those that apply to any job. Soft skills can run the gamut from being able to manage your time well to being an effective communicator. These skills are worth boosting, too, because they can help you succeed at any role you take on.
Imagine you've struggled to manage your time and it's caused you to miss deadlines. That might hinder your career growth. But if you learn to better manage your time, it could set the stage for more opportunities -- and a higher wage to boot. Plus, once you learn to manage your time within the context of your current job, you can transfer that skill over to any job you get.
Advice worth following
Warren Buffett often shares advice on how to invest money you don't need to put into savings. But he's also a firm believer in investing in yourself. And if you want to buy yourself some protection during periods of inflation, perhaps the best thing you can do is make yourself the most valuable asset you can be.
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We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has positions in Berkshire Hathaway (B shares). The Motley Fool has positions in and recommends Berkshire Hathaway (B shares). The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy.
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