Inflation impact on personal finances

Hello and Everyone

Finance management is everyone's part of life and I believe no matter what you do but in some way you are managing your finances. Some people are very good at it and some are not much but still everyone is involved with it. This is because we spend money on various things and we also plan certain goals which is part of the financial management. Maybe you have not gone through any specific procedure or the training to understand it well but it does not mean you are not associated with it because we all do it in our day to day life.

I have been managing my finances since long but after the marriage this responsibility has increased. I need to plan a budget for the entire month and also I keep on saving some funds that I can use for investment on various is tough like Crypto and gold jewellery etc. I got to know about inflation much later but now I know that how it affect the money management. When I started managing my finance that time I had no knowledge about inflation and how it work but after 2 years I got to know about it and now at least I have thoro understanding about the inflation. They share a number which is not just a number instead it's much more and now I understand it.

Inflation is an ongoing process where the money loose its value over the period of time. After the pend me the inflation rate was high and because of that I could notice price increase on various household item specifically grocery items etc. because I manage kitchen expenses why no how even as a small increase on the price for any item contributes on monthly expenses. After the pandemic, there was so many items where the price was increased and altogether it was an increase for me with more than 20% in less than a year.

Inflation is everywhere and to deal with this problem we need to invest money. While we cannot control the inflation and we also cannot minus the expenses that are necessity in our life. So what is the way out to overcome this problem or find the solution. The best solution would be to invest money on something that can offer higher interest rate than the inflation percentage. For example if the inflation rate in your country is 7% then you must invest on something that should be earning 10% or more to accommodate this inflation ratio. In this case at least will be able to grow your money v3% which is not much but at least it will be able to cover the loss that inflation does to the capital. Because of the inflation many daily need items are also getting expensive and it's not in our control. If there is a product which we need to consume anyway so its obvious that we cannot stop using it and this is why this is not in our control but with investment we can surely grow our money faster which will be able to accommodate the on going inflation.

I have been investing on gold which is capital of managing the inflation rate but now with cryptocurrency I am also expecting that it will be even better because the growth possibility is way higher in this market. Investing is good habit and we all should adopted and basically is investment should be done from the income not from the saving. What I am trying to say is that we should first invest every month or whatever frequency you like and then use the remaining money for the expenses and this is the proper approach for investment.

So this is my way of dealing with inflation and financial money management where I try some of the ways to deal with ongoing inflation that reduces my money in away and it is everywhere no matter what country you are from so you should know the way out to deal with this problem

This is my participation post for Initiative: March Monthly Prompt

Check out the above post if you are interested in participating in this initiative every day there is a different topic that is fun and allows us to share our thoughts.

Thank you so much
Stay Safe

Posted Using InLeo Alpha