The secret wealth destroyer is “Inflation”. What we earn and save, major portion Inflation eats away.
What is Inflation?
Inflation is nothing but decrease in the “purchasing”power of money. For example an individual buys 4 dozen apples@100 rupees in 1990, but is it possible to buy the same quantity at that rate today in 2021?. That is Inflation!
The major affected sectors are Healthcare and Educational costs. We are all noticing a huge spike in medical costs and educational costs these days.
Medical inflation is about 10-12% where as educational inflation is about 8-10% in India. We have to be prepared for this. If we are not ready to face them, inflation will eat up your savings and make you poorer! This is fact!
The recent covid-19 leads many families to struggle for medical emergencies. Medical costs are increasing day-by-day. We have to protect ourselves by taking Health insurance at an early age. Taking Health insurance at an early age saves huge premium costs in the latter years.
ways to be prepared for Education Inflation–
Educational costs are seen rapid rise in the recent times and it may increase in future too. Today many parents were paying lakhs of rupees as fees for their child’s kindergarden which were spent on their whole education(K.G To P.G). It’s a real fact! Those who are not prepared for educational inflation would suffer a lot as they(Parents)prefer child’s education as top-most priority.
To overcome high educational and medical costs, one has to save for their future from their first pay-check. Saving is not just enough in these high inflation, they have to invest which beats inflation.
Do research on your own on the high inflation beating products and according to your risk appetite, take an action. But do remember-” Not Taking risk is a bigger risk”. We have to take calculated risk to beat inflation. Generally risk-free products carry below inflation rate returns where one should decide on the inflation beating products.
It is only possible by investing in high return products to combat medical and educational costs. Whether it may be Shares, Mutual Funds, Real Estate or Gold, do your own research and act accordingly. But taking calculated risks is mandatory to beat high inflation in India