Combating Inflation, the Enrich way!
Finally, our FM and PM have accepted that there is a price rise but have attributed it to the global factors. And then, there is a hike of Rs.5 on petrol, Rs.3 on diesel and Rs.50 on LPG which will have a further cascading effect on prices.
No matter what the official inflation rate is, every family is feeling the heat of price rises and is wondering whether it will be a continous struggle.
There are 3 ways to handle the increase in prices.
1. Deny that there is a price rise.
2. Accept it grudgingly and keep cursing everybody for the mess.
3. Handle/manage the situation intelligently and convert it to your advantage.
We do not want to address 1 and 2 because there is no power in doing so.
You might wonder: “What can i do about the increase in prices and worse, how can i convert it to my advantage?”
Paraphrasing the words of a philosopher who said “Karma is what happens to you and freewill is how you react to it”, “Price hike is what happens to you (and everybody else) but how you react to it is your choice”
First of all,
- Do you know your income and expenses, intimately?
- Do you actually have a system of budgeting at home and
- More importantly do you follow it?
Contrary to public thought, Budgeting is not an exercise of denial but that of awareful choice. You decide to spend on something knowing fully well the impact of that expense on other areas of your life.
So, if you really want to combat inflation, you need to really know how much you are spending on your necessities and for discretionary expenses like eating out, entertainment etc. Only then can you choose to shift some money from one to another and manage your expenses within your income.
And once you have a budget in place, the key is to know exactly when your actuals exceed your budgets so that you can take corrective action. For example, if your provisions budget is exceeded on the 20th itself, you can be careful about your purchases in the next 10 days and defer as much as possible. This discipline will bring out your creative talents in managing money to the hilt.
Knowing where your money goes and tracking your budgets are integral aspects of Enrich 2.0, the Real Personal Finance Software for your Entire family.
To know more about Enrich 2.0, click here.
And if you purchase Enrich 2.0 in the month of June 2008, you also get a VCD titled “Powerful Secrets of Money” FREE. Take advantage of this special offer and get on to the road to Peace and Prosperity, Forever!
And once you get into the habit of using Enrich 2.0, financial awareness is ingrained into your system and that will enable you to manage your life, with or without inflation!
Happy spending!
