The situation in most Indian households and corporate offices today shows one major action taken – cost-cutting.
To handle your finances during inflation, you should:
Do not overuse daily essentials like cooking gas, electricity and so on. Cut down on inessentials when buying groceries. Look for cheaper alternatives to products that you normally buy.
Create a budget for monthly spending and savings. Do not eat into your savings or debt amounts.
Choose to save in government-backed savings plans, you can’t expect a higher-than-market rate of return for the money, because your primary objective is the security of the funds and not returns.
Look for investing in gold. Commodities like gold are a hedge against inflation. This is mainly because the factors that affect the prices of gold are different from those that impact the prices of other assets like equities for instance.
Invest in short term deposits and funds, commodities and property. This will help you to slowly reach your financial goals while safeguarding your hard-earned money