Every second day we read the shocking headlines in daily newspapers about rising inflation rates in India. Rates of petrol, diesel, electricity, Gas and other necessary things are rising every now-n-then.
In such situation, Indian house hold today shows one major action taken i.e. cost cutting.
Controlling inflation in economy is not in our hand but we can definitely beat inflation by controlling our expenditures to some extent.
Inflation cannot be controlled by taking a single measure. However if finances are wisely managed then we can beat inflation comfortably. Here are some useful tips for Indian to beat the inflation.
TOP 5 Tips for Indian to Beat The Inflation:
Curb your expenditure:
The very first step you need to take to beat the inflation is to curb your expenditure. You have to control your monthly expenses. For salaried persons it is easy to control the expenses because they know how much they will get every month. For business person, it is difficult to fix amount because the income is not fixed. They can calculate on the basis of average of past months.
You have to use daily resources wisely like, cooking gas, electricity, vehicles etc. Cut down on your items which are not necessary products that you normally buy and find out alternate items which are less in cost.
Many times you find local brands are far cheaper than the branded products with the same quality and quantity. Search for alternate brands save your money and protect your purchasing power. You can bargain a lot in local brands & here are the tips for the same.
Create a budget for saving and spending:
It is known that saving money is in the blood of Indian people. Savings can be used to spend on uncertain expenses or future expenses like medical expenses, marriage of children, children education fund. So saving is the part of the earning.
Save money at the beginning of the month. Make a list of fix monthly expenditures then prepare a list of items which are necessary but could be given secondary preference and comparatively least important. Stick to plan of your monthly expenditure list and then spend accordingly.
This exercise will control your unwanted expenditures and you can spend you hard earnings on required goods and items.
Don’t use the saving for your debt amount. Debt will drain your saving from you and make you difficult to come out.
Investment in Govt. Schemes
Once you start saving your money you can invest money in safe and secure investment schemes of Government. Post office savings are very popular in India.
Even bank deposits are good with safe returns on investments; return is @ 10% TO 11%.
Diversify your investment
If you are little bit speculative and invests in shares in share market then you have to think twice before investing in shares. Investment in one type of shares is risky. Diversifying investment in different sectors will safeguard your hard money and secure you in recession in some sectors.
Return over investment is less in Government schemes though they are safe to invest but some limited sectors also gives good return over investment. Invest in reputed financial organization schemes only like HDFC Bank, ICICI Bank, Reliance etc.
Investment in mutual fund is also good option now a days.
Invest in Gold:
Investment in Gold is believed to be a safe investment since ancient age. Even economy of country depends on reserve stock of GOLD. Price of GOLD touching up to the sky. Though investment in gold requires spending off your big chunk of savings but this investment is worth investment. You can start by buying from small amount occasionally.
Mostly people of India have a practice of buying Gold on festivals like “Gurupushyamrut” nakshatra, Diwali, Dashera. It doesn’t matter how much to buy gold but they are buying minimum amount for sure. This buying habit of gold helps them to get rid of big expenses like marriages, education expenses in future.
In conclusion you can beat inflation either by increasing in income or cutting down your expenditures. Income sources to increase income is limited and it takes a time to build permanent income source whereas decreasing expenditure can be implement immediately and quick results came outs.