My views on Financial Planning against the Increasing Inflation

The last 3 years have made us go through some turbulent times. People lost their jobs, businesses got shut down. The interest rates on savings went down, stock markets are down, but in all of this one thing that we had to face cruelly was the high inflation. Economists say that the year of 2023 is probably going to be a bad one where we may face extreme economic crises. So how does a common man survive in all of this chaos.

Financial planning is very important, whether you are alone or you have a family. You have obligations or not obligations but it is still required under all circumstances. You never know when a big expense comes up and stands at your door, and then it would not be possible to take care of it. 2 years back when my husband was down with Myasthenia attack, we were in and out of hospital for 6 months and in that time the cost of the treatment came to almost 30 Lakhs INR, this is not the type of money one has leisurely lying in their bank accounts. The insurance companies declined to pay for this treatment and we had to manage the expense by ourself. Later we did fight it out with the Insurance company and received the claim, but that was much later. I could have not stopped his treatment till I would receive the claim, right? These expenses are brutal and they can literally kill you.

Me and hubby have always been into savings but since this incident we have become more mindful about our savings. We make it a point to save every month from our income, no matter what. When we have money flowing in on regular basis, we become comfortable in spending. We end up buying bigger things, sometimes things which are not even necessary. I believe in small and consistent savings. My dad would always tell me that no matter whatever happens save a minimum of 20% of your salary every month be it however small the amount is. He would say never underestimate the power of compound interest. It gives you good returns if you keep a long-term vision.

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Gold was at 4K 20 years back and now it's at 45K, one can imagine how prices are shooting up. With so much of exposure to life no amount of money will be enough but we need to draw our line, fix our own budget, plan our savings and taxes, make a plan for regular systematic savings, keep a check on day-to-day expenses and save.

This year what I do not intend doing is, I am not planning any big holiday for the year, nor any major expenses. No unnecessary shopping and splurging on things which are not important.
This year what I intend doing is to live minimalist and save as much as I can and I want to be very conservative in my spendings. I am going to save in mutual funds and Cryptos. Time is right to invest in Cryptos as the markets are at a low and it may fall down further so it would be a good opportunity to buy.

So, what are your financial plans and goals for this year?

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