How to Fight Inflation ? part 1

How to fight Inflation :

(a good photo on web )

The inflation in India is growing day by day and it had taken a very steep rising curve in last few months. To control this inflation Central bank is rising the repo & reverse repo rate like anything it has risen the rates eleven times and by 375 basis points till since from last 18 months.

What is the result of this ? do there is a control on inflation ? answer is BIG NO !

But yes one result is there it had made a very big impact on the common man in India. For almost s to everything from food to Petrol now he has to pay more money . The basic necessities like Food, Clothes & home is becoming costlier for him. Let’s not get in to the details how it had happened & why it had ?

The main question is to Fight this out because now this is a survival game.

How you can to fight inflation ?

There are two well known ways to fight with inflation .

1.       To earn more  ( How???? )

2.       To spend less   ( Compromise ?????  )

Can we think of any other thing which can be a better option to the above two ?

Yes there is a option & that is planning .

If you really want to fight inflation & be Financially successful then you have to plan you finances.

How you can plan your Finances ?

1}Protect your existing asset : You have to protect your existing asset from getting eroded by unforeseen events, so first comes the protection. Have a sufficient Medical cover to your family to take care of medical expenses which can occur any time without informing you & can give you a big hit in this highly inflationary environment.

If you are a family of four belongs to Middle class with yearly income between 5 lac to 7 lac Family  floater medical policy SA 300000/- is recommended. If the income is above to this then increase  the cover as per your income.

Should have a contingency fund to take care of unexpected eventualities. The pressure on corporate  is also increasing due to high interest rate Debt .

Have a sufficient life cover .

2 } Pay off the loans which are at higher interest rate : There are very few fortunate people who had opt for Fixed rate of interest rate for housing loans 50 basis point more than rate of 7% at that time . Their bet in today’s time turns on their way. But for rest it is like a nightmare, it may not be possible every time to pay off the loans one shot but you can surely make a plan to increase your EMI and link it with increase in Payment. The one which have less tenure & have higher interest rate should have to be settled first.

3 } Stop using credit card : Credit card normally induce impulsive buying . keep Credit card away from your pocked will save you from unnecessary expenses & also can save you from unexpected Debt trap.

 Continue………………….