How to Save Money During Periods of High Inflation
Inflation is a time wherein people tend to panic and do not understand how and by what means they can save their funds to run for a longer time. We have some of the ways in which you can understand how you can save your money during the times when the country is hit by inflation.
What is Inflation
In simple words, Inflation can be defined as the increase in the cost of day-to-day goods and can consequently devalue the currency of a nation. The Indian economy hit by inflation has majorly affected the prices of basic commodities like crude oils, vegetables, grains, edible oil and more.
How to Save During Inflation
In a nation like India, where people majorly invest in traditional rupee driven investments like Public Provident Fund, Fixed Deposit, Recurring Deposit, gold etc. the rising inflation can turn out to be an acute issue that calls for a proper financial strategy.
We have come up with some ideas that can be followed to save money during the phase of Inflation hit economy.
Open a High Interest Savings Account
Opening a high interest savings account with zero balance will help you in gaining interest on the saved amount hence, the money will not be stagnant as kept in your locker. A high interest savings account will help you in keeping track of your money and will be highly helpful in making transactions, UPI payments, getting loans, applying for credit cards etc.
Lower Your Daily Expenses
Lowering your daily expenses will also help you in earning that extra penny and saving some amount. We sometimes tend to spend more than what we should in a day and that leads to us getting broke at times. Lowering the expenses that can be avoided is one of the best things we can do to save some extra cash while the country is facing problems like inflation.
Create a Budget
To stick to your rules of managing money, you can create a budget for yourself and work according to that. Simply write down your income, expenses, savings, and investment to understand your finances in a better way. You can also understand how to save more money with the budget that you have created. It will help you in saving some extra money that you might be spending in places that are not so necessary.
Invest Smartly and for Long-Term
Start making smart investments. Investing smartly in stocks, shares, PPF, RD, FD are some of the investment plans that can help you overcome the outcomes of an inflation hit economy. Make your investments for a longer period of time in places that you think will give you good returns.
Find Ways to Increase Income
Finding out ways to increase your income is a great plan. If you know graphic designing, content writing, singing, painting or any of the extracurricular activities that can help you in gaining money by showcasing your art or giving tuitions, then you must try this and earn more to have extra money in hand when you or your close ones are in need.
Get Insured
Getting insurance, be it health or asset insurance is a must. If by any chance you damage the asset or get ill; it will mostly be covered by the insurance. Paying an insurance premium might sound like an extra expense but it sure helps in the longer run.
Final Thoughts
These are some of the ways in which you can save money even during the time when the nation is under the circumstances of inflation. Click here to learn more about how inflation affects our lives and where you can invest your money smartly to overcome it in the long run.