Beating Inflation: A Crucial Consideration in Your Investment Strategy

Nowadays you can use many options to invest and there are many options available online. Investing has become so easy that one can invest millions in a few seconds. And because everything is online, it has become much easier here. But even if you are investing, it is very important to be sure about what you are investing for. Like you need some fixed amount after 10 years from today. And you want to do it with money from today itself because right now you do a job. When you work and have a source of income, it becomes easier to save. Yes, it is not possible for everyone, but I believe that if you try a little, you will be able to do so.

Apart from how much amount you need and for how long, you need to keep in mind whether the interest you will get on the money you are investing is beating the inflation rate or not. Nowadays, there are many calculators available online where you can find out the time value of money in any future year. Yes, all these calculators are programmed, and no one has seen the future, you cannot say anything at what rate the inflation will increase tomorrow or maybe the work will be done but still you can calculate an average inflation according to your country. You can check from and accordingly, you can make your investment plan.

Many people invest but as their salary increases every year, they keep the investment amount the same. This is where you make a mistake because if your salary is increasing then you should also increase your investment, this will only benefit you because as your salary increases, your investment will also increase when your investment period ends. Then you will see how much money you have saved just by increasing your amount every year. Nowadays, many investment platforms have come but many people in India are mostly investing in mutual funds and this has brought a very good golden opportunity because people are assuming an average return of 12% in it, but I have seen that the returns in this are much higher than this. Let's see what happens in the long term but in the short term, its returns are much better.

Step up SIP:

You must have heard about Step Up SIP, if you haven't then don't worry because I will tell you about it. It is just like SIP, you just have to set the percentage by which you want to increase your investment year after year. In the screenshot given below, you can see that if you increase your investment by 10% every year, you can see good returns of 12% in 10 years only if you extend its tenure or start depositing in it. If you increase the amount, you will see even better results. You can change your amount per year and many other things by going to the calculator given below and seeing the results of your investment amount.

Step Up SIP Calculator

SIP Calculator

You can increase or decrease your investment rate according to the inflation rate of your country, but 10% is a very good option because many people believe that you should invest 10% of your salary and if you are If you can do it where you can get better returns then what better could you want than this. It is also safe. Yes, when you withdraw it, there is tax. When you start any ship, you should know about it thoroughly only after that decide to do it and whenever you invest somewhere, think about it. Do research, it would not be wise to invest anywhere just by listening to people. What do you think about this? Do you invest? On which platforms do you invest and what type? Please share.

see you in the next post. Keep learning and keep exploring...

All the Images are Made Via Canva unless otherwise noted.

Translated via Google Translator, The content is original.

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