Whoa, I have started saving some money and it is parked safely in my bank account. I am on my way to riches within some years..Whoa!!!Did someone mention a beast called “INFLATION”. Now, I am no guru when it comes to all these alien terms but, given that INFLATION is the single most talked about topic in all forms of media available, I did manage to learn something about it.
Here is how my version of inflation goes,
It is in very simple terms a termite that keeps eating in to your savings. How?
Lets, take the INFLATION to be at a very modest rate of 10%(very unlikely though, given present scenario).What this 10% means is that a 100 rupees now will be as good as 90 rupees at the end of the year. The stuff you could buy for rs.100 now will cost you rs.110 at the end of year.
But, isn’t my savings account generating interest for me???Sure it is, but banks all over today pay a maximum of 6-7% tops as interest rates. Now, we all can do some basic math right??
This brings into scene the need to invest the money saved and making the money work for us instead of lazing around in the savings account earning a meager 6 %.
So, come the next post and I will share the various investment mantras I discovered in my “Pursuit To Opulence” with all the how’s and why’s of it(As far as I know)
Till then, Happy Saving and happy reading.
Please post any comments you want even if it say’s “Shut up and Stop writing”