Americans are concerned about their purchasing power and retirement plans as inflation continues to rise. However, there are several ways to make and save money, as well as preserve your investments, in this atmosphere.

When it comes to savings and investments, knowing the inflation rate is critical since it determines whether you make a return in real terms (after inflation). Assume you deposit your funds in a bank account that earns 1% interest. You'll have 1% more money a year from now. But what if inflation is more than 1%? In such instances, even if you have more money, you can only buy a fraction of what you started with.

If you want to benefit from your investment, you'll need to discover an account or investment that 'beats inflation,' meaning the interest or profit you get is larger than the rate of inflation.

Some savings accounts are index-linked, meaning they pay interest that follows inflation but may not necessarily match other interest rates. When markets predict inflation to grow, they become more costly; therefore, the overall return may not be higher than inflation. There's no foolproof technique to keep your money safe against inflation. The one guideline is that cash savings accounts aren't the ideal long-term investments because the return is nearly always lower than inflation, reducing your purchasing power.

Savings accounts are still useful, especially for money that has to be accessed quickly. However, if you aim to save money for at least five years, investing may be a better option.

Given its rate of return, the stock market tends to outperform inflation, albeit growth may be limited during inflationary periods. When future profits are discounted to today's money, inflation reduces their value. As a result, equities that are overvalued in comparison to the rest of the market may be more vulnerable to price declines.

Experts recommend evaluating cyclical enterprises, which follow an industry's cycles because inflation is often associated with a thriving economy. This includes industries such as manufacturing, energy, and consumer discretionary. With consumer prices up 6.2 percent year over year in October, it's also a good time to look at your finances. Look for methods to improve your income or try to negotiate a decent raise to keep up with inflation.

Buying in bulk might also shield you from price hikes in the future. Consider locking in today's dollar costs for items like a prepaid education plan or burial expenditures. Refinancing your mortgage today to lock in a low rate will save you money because mortgage rates are still low. For a 30-year fixed mortgage refinancing, the national average interest rate is 3.35 percent. Interest rates should rise if inflation persists for longer than investors forecast.

Keeping track of your spending and living within your means can assist you in staying on track. Monitor your income, spending, and savings to keep track of your financial flow. This can enable you to spend the same amount regardless of rising commodity prices.