Rising Inflation is Ruining Your Savings: Take These Steps to Protect Your Money

Inflation is one of the major reasons why we witness that the money which we currently have is becoming less valuable. In a country like India, where people used to remain price sensitive can feel the burnt of inflation in the market and other places of consumption. 

When it comes to savings, then the standard practice is to keep the amount in a savings account, which a person can use; therefore is the backbone or financial stability of the person. Here comes the inflation which is rising higher in terms of percentage basis, by the interest which the banks are offering. 

Hence comes the use of alternative sources of investment where people can keep the fund and let the amount grow when it comes to increasing the wealth of the individual. 

Understanding Inflation: The Silent Wealth Destroyer 

Inflation is the rising cost that happens in every country, and one needs to understand that the value of money now will not be the same after 10 years. For example, the cost of education is comparatively low, and that has changed in the last few years when we can witness the rise of inflation in the market. 

Even with taking loans, people need to take higher amounts to make some purchases as their purchasing power has reduced. One can consult with a DSA partner app to get a loan, and can select a repayment tenure that is best suited for the individual. 

The Impact of Inflation on Savings 

Inflation is one of the major reasons why an individual needs to worry about their wealth preservation. India is a nation that is mostly dependent on savings, and for that, one needs to take control of their money. Previously, the savings rate in banks was high, and for that, people were mostly comfortable keeping the amount on banks. 

Now, the savings account interest rate has depleted, and people are no longer secure by keeping their money in the savings account as the annual inflation is higher. Hence, it can destroy the purchasing power of the money, therefore making it a net loss for the individual. 

How to Protect Your Assets from The Perils of Inflation 

An individual makes money through their assets, and one used to protect and safeguard this wealth when it comes to inflation. Here are some of the steps one can take to prevent themselves from the perils of inflation. 

• Design and Develop an Investment Plan

The first task for an individual is to design and set an investment plan, and for that, one needs to consult with a portfolio manager. If the individual has the expertise, then they can go for the right investment plan. 

• Factor in the Inflation in Your Returns 

In a country, inflation is necessary for growth in the segment, and that shows that the country is on an upward trajectory of inflation. There are multiple things that one needs to take care of when one wants to gather higher returns. 

Here, a person needs to factor in the point of inflation and then calculate the absolute returns, which is better for the investment they have made; even for a person who is seeking a loan they need to factor interest rate in terms of inflation. For all these they can contact a DSA who can help the individual to get a better understanding. 

DSA’s full form is Direct Selling Agent, and they are the ones who can guide you on which type of loan one must take where one will not feel the heat of inflation for doing interest repayment. 

• Diversify Your Funds Across Assets 

The next thing one can do is to diversify the assets, and for that, one needs to take control of the assets and keep them on separate instruments where the appreciation chances are fair, and the risk will be reduced. 

In this format, a person can comfortably beat inflation without reducing the net worth and stopping the process of capital appreciation. 

Keeping a Safety Fund For Your Loved Ones 

The need for safety nets is necessary as it allows a person to protect their loved ones when it’s necessary. Hence, one must keep aside a certain section of funds that they can use. Here, one can go for a fixed deposit or other flexible options from where they can take out the money. 

These are some of the ways through whcihone can stay prepared for inflation and therefore find the right methods to beat it and let the investments grow proportionately.