Firstly before reading any article on the topic of inflation viewers should be knowing the real meaning of the word ‘Inflation’. So if we pay attention to the google definition of Inflation it says ” general increase in prices and fall in the purchasing value of money.”
RISING INFLATION RATE, HOW YOU CAN SURPASS IT
In layman’s terms inflation means when the prices of goods increase and the value of paper money decrease over a period of time. For example, if a product cost you 100rs last year and is now 110rs then the inflation rate of the product is 10%.
Tips to Overcome Inflation
This means that the value of goods is increasing but the value of paper money is stagnant. Read this article on what is Insurance and its Importance.
Over the past few years, the growth rate of India’s inflation, or the whole world’s inflation has been really speedy. Inflation is inevitable no government can stop it but can slow its growth rate and the government puts efforts to slow down its pace regularly.
But as a citizen or individuals, we should also become serious about it as not only it will benefit us in the long term but also it will be good for the country.
So assuming that you now got a brief review of inflation and are now ready to read the diversified numerous ways on how to surpass/inflation we are heading toward our list of points focussing on India’s inflation which are as follows.
Inflation can be only beaten by budgeting and investing so let’s converse about both in a proficient manner.
Best Ways to To Combat Inflation In India.
Budgeting should be your prime concern of yours. A well-planned budget will really help you out in future any type of financial crisis scenario. You should design your budget in a way that a particular percentage of your income is dedicated to expenses, savings, needs, and wants.
You can also use budgeting methods available online and then after budgeting you should be left with some amount of saved money. Also Read: Best Skills for freelancing
According to us, the 50/30/20 rule is the finest budgeting method of all times but you can go through other rules/methods too for knowledge and can apply whatever fits in your current financial scenario. Now let’s come to the main point: Investing
To beat the inflation rate, investing money should be one of your utmost priorities.
By investing money your money will also be growing in terms of value and can beat inflation but you should invest in those schemes in which the return or growth rate is more than the inflation’s growth rate otherwise in the other scenario you would be still at a loss in the long term. Also read: How to Lose Weight Fastly
Now let’s talk over the premier investing assets in which you can invest and beat inflation and get benefited in the long term
Being a good deterrent against inflation, gold has been the most adored investment option of Indians. The yellow metal has always been profitable or increased in value over many past decades. Also, check out this article for more tips and ways to protect yourself from inflation.
4. REAL ESTATE
Another adored investment option of Indians: real estate is a great asset that works against inflation and can also generate extra income for its owner.
5. STOCK TRADING
The stock market, a controversial investment topic in Indian society, has made huge profits for some investors and also some huge losses for some investors. All you need is financial and stock market knowledge to dive into the place and use the stocks against inflation. Also Checkout | How to Edit Sent Whatsapp Messages
6. MUTUAL FUNDS AND ETFs
Mutual funds and ETFs can make your money inflation-proof by giving a commendable return/profit but also comes with a high volatile rate and greater risk.
In last we would like to say inflation really Works as an enemy to the country’s economy and its citizens financially. It’s the duty of citizens to invest for their financial benefit in the long term and also should try new investment plans not relying on those old investment methods of making a fixed deposit in the bank.
Being financially literate has now become a need in this fast pacing world. You should also save money for the future but having some investment goals is the sign of a financially educated person.