Are you aware of inflation?
Ravi Padmanabhan
Wealth Creation Expert, Speaker & Trainer on Personal Finance, Investing & Money Management, Believer in Long term Wealth Creation in Equities
The cost an IIM MBA was 5 lakhs in 2007. The current cost of the same MBA is 23 lakhs. Yes the price of an MBA has gone up 4.5 times in last 14 years.
The cost of a consulting with a doctor costed Rs 20 in 1990. The current cost of the same is Rs 500. This has gone up by 25 times in last 30 years.
One of the things we fail to understand the is the impact is the impact of inflation in long run.
We tend to just look at data what we read in the papers and conclude that your inflation is manageable. If you analyze the last decade you will find that a few categories of expenses like education and healthcare have a higher rate of inflation compared to the rest.
If you have a household expenditure of Rs 1 Lakh now in 2020, you will need Rs 5.74 Lakhs per month (at 6% average inflation) in next 30 years or approx Rs 68.8 Lakhs per year.
If you are someone who is thinking about early retirement you check if you have enough money for the rest of your life. With increasing life spans, it is easy for people to live thirty years or more post retirement. Imagine managing your money for thirty years without having an source of income. It is your responsibility to ensure that your savings are earning more than inflation and able to meet your financial goals.
“The best time to plant a tree was 20 years ago. The second best time is now.”
~ Chinese proverb
If you have not yet started to plan for your future, the best time to plan is now.
To Your Financial Success
Ravi Padmanabhan
CEO at Lynkread | LinkedIn Lead Generation | B2B Authority & Reputation Building | Strategic Messaging | Driving Meaningful Engagement | Boosted Client Visibility by 45% | 20% Increase in Qualified Leads
4 年Very important posts for the youngsters, everyone should be ready for the future and its consequences. #lynkread #inflation