Inflation is here to stay for quite some time, personal finance expert and best-selling author Suze Orman predicted Thursday.
Therefore, there are a number of things you should do to manage your money right now, she said.
"The number one investment that every single one of you should have no matter what right now is a series I bond," said Orman, who joined CNBC Senior Personal Finance Correspondent Sharon Epperson on CNBC's Twitter Space conversation, "Invest with Pride: Ready. Set. Grow."
"There's no excuse."
Get Tri-state area news and weather forecasts to your inbox. Sign up for NBC New York newsletters.
I bonds are backed by the U.S. government and don't lose value. They earn interest on both a fixed rate and a variable rate, changing every six months. The variable rate is based on inflation and is now a record 9.62% through October 2022. The fixed rate is at 0%.
You can only buy them directly on the Treasury Department's website, TreasuryDirect.gov. The amount starts at $25 and you can invest as much as $10,000 each year, although there are some exceptions, like the ability to get up to $5,000 paper I bonds as part of your federal tax refund.
If you want to buy paper bonds instead of electronic ones, you can buy between $50 and $1,000 annually.
You can't cash in the bond for one year, and if you cash them before five years, you'll lose the previous three months of interest. While the best thing to do is hold the bond for five years or longer, if you don't think you'll be able to do that, don't let it stop you from buying, said Orman, host of the "Women and Money" podcast.
More from Invest in You:
25% of Americans are delaying retirement due to inflation
Suze Orman's three rules to easily budget money as a couple
Americans can expect to pay a lot more for medical care in retirement
"Given that inflation is probably here to stay for some time, even with a three month interest penalty in years two through five …. It's still worth it, believe it or not," Orman said.
The latest data on consumer prices is set to come out next week. Last month, the Bureau of Labor Statistics reported the consumer price index, which measures the prices of goods and services, jumped 8.3% in April from a year prior — the highest level since the summer of 1982.
In addition to making smart investments, also consider your current financial situation and whether or not you can continue to meet your expenses, Orman said.
"People really need to look at — what do they want to do versus what do they need to do? What do they want to buy versus what they need to buy?" Orman said.
"If you are now scrambling where every penny is going out, that's coming in, you're in a situation where you need to cut down.
SIGN UP: Money 101 is an 8-week learning course to financial freedom, delivered weekly to your inbox. For the Spanish version Dinero 101, click here.
Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.