You might be doing investments to achieve your goals, but have you consider the silent killer “Inflation” in mind?. Inflation eats the purchasing power of your money and so you can’t achieve your goals in future.
Isn’t there any solution to these?-Yes there is! If you plan your investments inflation proof(Assuming future value)you can achieve your goals. For that you have to opt for “Risky Investment Options”
Do Remember every investment option carries “Risk”. By not taking risk, you will end up as a loser in personal finances. Do remember- “Higher the Risk;Higher the Possibility of Higher Returns”,”Lower the Risk;Lower the Returns”, “Moderate the Risk; Possibility of Moderate Returns”. Your risk taking capacity decides your probability of your financial success.
Plan Your Investments By Considering Inflation–
Today’s youngsters are not considering inflation. This is due to high earning capacity in their initial years and easy availability of loans. But when they asked their grandparents about theiir lifestyle expenses 30 years back, they were surprised to hear- Their GrandParents spent 3000-4000 rupees as household expenses.
But is it really sustainable now? That 3000-4000 rupees wouldnot sufficient for a week-end party today! Do you know why this is- Due to inflation
In 1990 Price of KG Rice is 5 Rupees and now in 2020-21 it is 50 rupees/kg! If you enjoy the “Live in the current Moment” you would suffer during your retirement.
As your parents lived with 3000-4000 rupees salaries in 1990’s and spent 1.5k-2k per month, they end up with 2000 rupees as savings. With that savings they enjoyed lavishly, still there remains some amount at the monthend. But it is not possible now.
As there is mild inflation in 1990’s your parents are lucky to have such lifestyle, but due to high inflation in India and assuming inflation grows at this pace in the future too you would struggle for your future needs.
To avoid such situation you should make inflation proof investments. Take calculated risks and invest in inflation beating products. Even you are conservative investor you should opt for inflation beating instruments to achieve your future goals.