Tips on earnings, investments, and savings.
First of all, we must understand that any cash sitting with us is decreasing in value due to inflation and investing smartly becomes all the more important.
1.nbsp; Invest in assets that offer clear, positive real returns
Estimate real returns on your current and planned investments.nbsp; Real returns = Indicated investment earnings - Inflation ratenbsp;
February 2022,nbsp; WPI and CPI inflation rates in India are 13.1% and 6.1% respectively.
2.nbsp; Avoid investing in companies/stocks that need regular, consistent capital infusion to sustain their business model - for example equipment leasing/rental businesses that constantly need to retire old and buy new equipment.
Instead, invest in companies that have the brand power to increase prices without impacting sales.
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3.nbsp; Try to estimate your personal inflation rate and make changes to your expense patterns to reduce it.nbsp; You can do this by simply comparing your expenses on c regular items between two time periods.
4.nbsp; Seek a raise, increase the price of your time/service in line with inflation