I am sure all we have stories of how our grandfather/mother could buy 1g gold for Rs.1000 or could buy ration for a month with Rs.2. The thing to notice here is that if you see that in 2021 the gold price is 4k something now this is due to Inflation. 

BUT NOW THE QUESTION IS WHAT IS INFLATION AND HOW IT CAN AFFECT YOUR LIFE??

Inflation is the decrease in the value of a currency or to phrase it better, the decrease in the purchasing power of currency for a given commodity over a given phrase of time, which is coined as the term Inflation.

Now let's talk about facts, the inflation rate in India is 5-6% per annum. which means that if you have Rs.100 to buy something, and you save it for a year, then you won't be able to buy it next year as it cost Rs.105.

“YOU MUST GAIN CONTROL OF YOUR MONEY, OR THE LACK OF IT WILL FOREVER CONTROL YOU” ~Dave Ramsey

Q. HOW TO GET BENEFITS FROM INFLATION??

To be honest there is no way to benefit from inflation it's just that how can you save your money from decreasing in value. If you heard people say FDs are the safest way to invest and it gives you a return of 6-7% P.A., now see the catch here is that the 6-7% return is without taking into account the inflation. so the actual return is about 1-2% only, and to me, it is the worst way to invest your money.

Q. WHERE TO INVEST YOUR MONEY THEN??

I can't say where are the best places to invest as I currently have very little investment, to be honest, I haven't worked anywhere or have left the house but all of this is what I learned from wasting hours in books, youtube & blogs. 

1. MUTUAL FUNDS

We can invest money in Mutual funds which have around 15% return p.a. →this is for those who want a relatively safe investment plan, you can save up to 20% of your income/month and invest in a SIP mutual fund. Do this for 10 years then the value of your investment is as follows.

 NOTE:- This is made without an adjusted price of inflation.

(For ease of calculation your investment is taken Rs.20 /month for 10 years)

• Total amount of Rs. Invested  = Rs.2,400
• Value of Investment after 10 yrs = Rs.5,504
• Interest Earned = Rs.3,104

Now lets take it in terms of %

• Total amount of Rs. Invested  = 2,400%
• Value of Investment after 10 yrs = 5,504%
• Interest Earned = 3,104%

This is when you invested only 20% of the income and let me be frank the more money you put in there the money you will get. And we will definitely cover how to financially be free using investments.

--------------------------More methods in the next post. Stay Tuned-----------------------

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