I went to the saloon last Sunday for a routine haircut and the guy charged me 20% more for the same hair cut compared to last month. Went in to buy some craft articles for my wife and the price had gone up 25% . I need not talk much about the vegetable process and souring auto fares ( minimum fare of Rs 30 charged for a short distance is a thing of the past now).
We often get to the see the price rise figures reported as inflation and it has been hovering around 10% for a while now. The real retail impact is much more higher and 20-25% increase in essential/ vital spend can put any one's budget for a toss. if you are the lucky ones paying more than 50% of your salary as EMI, you may in for a squeeze with banks raising their lending rates.
The funniest part is if you get a 25% salary raise ( which sounds big stand alone), you can afford to maintain the same lifestyle / maintain your savings amount intact. Sorry state for the folks who can't afford to keep up their earnings with inflation.
To tackle this we have only a limited options
1. Switch down your lifestyle. Reduce your consumption to must haves and avoid nice to have ( like a movie, eat out , etc) - This option is most difficult to do.
2. Increase your income ( may be a increment/job switch for salaried or revision of your sale price if you are a trader).
3. Ensure to start saving / stay invested in instruments that can give you inflation adjusted returns.
We often get to the see the price rise figures reported as inflation and it has been hovering around 10% for a while now. The real retail impact is much more higher and 20-25% increase in essential/ vital spend can put any one's budget for a toss. if you are the lucky ones paying more than 50% of your salary as EMI, you may in for a squeeze with banks raising their lending rates.
The funniest part is if you get a 25% salary raise ( which sounds big stand alone), you can afford to maintain the same lifestyle / maintain your savings amount intact. Sorry state for the folks who can't afford to keep up their earnings with inflation.
To tackle this we have only a limited options
1. Switch down your lifestyle. Reduce your consumption to must haves and avoid nice to have ( like a movie, eat out , etc) - This option is most difficult to do.
2. Increase your income ( may be a increment/job switch for salaried or revision of your sale price if you are a trader).
3. Ensure to start saving / stay invested in instruments that can give you inflation adjusted returns.
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