Making money during inflation

We all know that inflation means rising costs. But is it just costs, costs go up because the facilities that are given along with the item also have gone up. We are paying more for the convenience value as well. Let’s take the case of coffee or tea which you used to have in the good old days. We used to sit in the wayside cafe and chitchat. Today even if we have the same group, we will go to either Cafe Coffee Day or Starbucks. 

Oh! It struck you why you paying so much. You will not go to the same wayside cafe even if it present. Your status has gone up or you have assumed that your same old friend’s status is up. So we tend to showoff and this habit increases our expenses. Life has become more expensive just because of these small showoffs. 

So it is not only inflation, man, I have removed one myth of rising costs only because of inflation. But let us not forget, inflation is real and costs are going you, but we could save some amount by just not showing off. One might save my standard have improved; yes they are and should improve. But has your income gone up by the same percentage? If not improve your standard so that your income also increases.

Wow, your income will go up by just increasing your income or reducing your expenses. We are spending more in the hope of making more money either for ourselves of for our families. How? We send our children to international schools or to foreign countries, only because we want them to grow and by grow we mean make more money.

But this does not happen uniformly, our expenses increase at a faster rate than our income. So we need to work on reducing our expenses. It is always best to first increase your savings and provide enough before increasing your expenses. So how do you do this? One get a second income or as I said earlier, work harder that your income increases.

Now we come to expenses. We need to spend and that is not a choice but a need. But we can do it prudently. So if you need something, buy it, but buy something which will meet its purpose, lets say, you need a vehicle. Now you can either buy a two wheeler or a 4 wheeler. But since your family is big, you need a car. Here you can go for an economical car instead of a luxury car and you save both on cost and maintenance. In this manner, we can keep saving even during inflation. Ultimately money saved is money earned.