Beat the Inflation or it will beat You!

Hello Everyone, Namaste 🙏😊

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How are you doing? We all kindly aware of Inflation in our personal lives. I have been familiar with the term Inflation back from during my school days where I learnt basic about inflation in our economy classes. However the concept of Inflation for a common man is very far and deep as they teach in classes. And this is realised when one starts earning and managing ones finances. Basically Inflation is nothing just a black hole in your wallet sucking in all the dear money you planning to save, invest or leisure for yourself.

I have been always been struggling hard to bridge the gap between expenditure and savings but this is extremely hard due to rising inflation. In India the official Inflation rate is somewhere around 6-7% atleast what the goverment is trying to give our in public but in reality it's higher than 12%. There is constant increase in prices and in a span of five years, things almost reach approx to double the prices. This is in contrast to increase in income of average salary employee in my country. We hardly get 8-10% income income per year while the inflation is keep beating us in progression. That's the reason behind why I am not able to save much even after getting two increments as the monthly savings remains the same and expenditure keeps increasing so does the taxes.

Currently i am paying around 15% of my monthly income in house rent. Rental inflation keep rising every year, moreover getting a good flat rent is almost impossible. The inflation has always been there and will always there be. Well , Economics a moderate rate of somewhere around 7-8% is considered healthy rate of inflation. However that's not the case in most of the countries. Inflation is part of our lives and we have somewhere accustomed ourselves to live with it.

Inflation takes a heavy toll on middle class and lower income group people. Because those extra 3-4 % rise in prices every year is amount of meager savings that these people could harvest. But inflation makes them do away with this savings and they had to force to live on hand to mouth on everyday basis. And incase of emergency or urgent requirement they had no other option to get into debt and than they pay the eternal debt till death. This is happening very common nowadays as a result of which many middle class families have been pushed below the poverty line.

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For me currently my only focus is to save as much as possible and invest that money into equity. I am trying to avoid all unnecessary expenditure. But Rent and Food are the major expenses for me. I guess living in a City is quite expensive. As the prices of vegetables and fruits also inflation affected, moreover some local factors sometimes skyrocket the food prices. Inflation is teaching me basics of finances which i haven't realised. Finances is all about finding the balance between expenditure and savings. That's why I am currently saving more so that I can invest money and than grow it in the long term to beat inflation.

Beating inflation is no less than a achievement nowadays. It's the supreme and foremost part of finances. We need to have income generating assets and passive income sources to grow our money exponentially to beat inflation in the long term. I am glad I learn this early in life. Because earlier i used to think of saving money in the bank account only or FDs only. However in India Savings Bank account gives 2-4% return while FDs give 6-7% returns. These returns are nothing compared to inflation. That's why we should look for financial instruments giving higher returns than inflation rate to grow our wealth and beat inflation.

So what's your way of beating inflation?How's inflation effecting your everyday life?

This post is in response to today's Inleo writing prompt. If you are looking for topics to write on, do checkout the post for March month monthly prompt here: https://inleo.io/@leo.tasks/february-inleo-winners-march-monthly-prompt

Posted Using InLeo Alpha

Posted Using InLeo Alpha