RESUME APPLICATION PAY PREMIUM
Fund Performance

Fund Performance

Knowledge Center

Knowledge Center

About Us

About Us

Tools and Calculators

Tools & Calculators

Quick links

Mobile (Download app)
  • Webpages
  • Documents
  • HDFC Life ClassicAssure PlusInvestment
  • HDFC Life ClassicAssure PlusInvestment
  • HDFC Life ClassicAssure PlusInvestment

For NRI Customers

(To Buy a Policy)

(If you're our existing customer)

For Online Policy Purchase

(New and Ongoing Applications)

Branch Locator

For Existing Customers

(Issued Policy)

Fund Performance Check

RESUME APPLICATION PAY PREMIUM

What do you want to do?

Quick links

Mobile (Download app)

Download HDFC Life App

Buy plans, track your policy, make renewal payments & monitor fund performance with HDFC Life App, Download Now!

Apple Logo Go to Google Play Store

4 ways to protect your family’s aspirations from inflation

down-arrow
4 ways to protect your family’s aspirations from inflation
September 26, 2022

Table of Content

 

Introduction

Rising inflation typically erodes the power of money. This simply means that if you don’t invest your money in the right assets today, inflation will leave an impact on your purchasing power for the future.

Further, as inflation increases the cost of all items, be it from your day-to-day food to fuel to input raw materials. These costs are inputs for many businesses and hence, leads to an increase in the price of the end products for consumers. The retail inflation in India was hovering above 7%* in June 2022.

Here are four ways to protect yourself from inflation.

  1. Prioritize your goals

    Inflation is about the value of money today vs value of money tomorrow. Hence, it becomes very important to bifurcate your expense plan / goals into short term, mid-term targets and long-term goals. Once you have clearly identified the goals, prioritize them to map it with your current and future income levels. This will allow you to plan your cash flows in a much better way and save for the future combating inflation at the same time.

  2. Carefully track your family’s budget

    All the expenses need to be evaluated and benchmarked against your budget. At the start of the month, prepare a budget and list down all the expenses with their potential cash outflow. Track the activities regularly and at the end of the month, compare them against the budget. It is very important to track and review whether the income and expenses are consistently under budget.

    The reason for such tracking gives you visibility on two things-

    1. Smaller but regular expenses
    2. Larger, one-time expenses

    Based on the data points collected, you can identify common bills that can be reduced (in amount) or cut down (in terms of frequency). The end goal of this activity is to enhance savings, and thereby, investments so as to battle against the increasing inflation in the future.

  3. Practice goal-based investing

    Once you have identified your short-term, mid-term and long-term goals, you need to map each goal with investments that will help you achieve the goals. This is called Goal-based investments. For example, one of the long-term goals could be planning for your child’s education. Here is one such plan – HDFC Life YoungStar Udaan plan with a money back option for your child’s future goals.

  4. Evaluate high interest yielding debt instruments

    Your assets need to be diversified. While considering diversification, you should evaluate debt instruments that can provide high interest yields. Increasing inflation affects the stock market negatively as the cost of goods for businesses increases, profitability takes a hit in the short run, affecting the stock prices in the market. Hence, debt instruments become lucrative investment alternatives as the cashflow in the form of interest is fixed and stable.

Conclusion

It is difficult to predict whether the inflation will further increase or decrease. Historically, the products have become more expensive year on year and there is no reason to believe the trend is not likely to continue. Following these simple steps will always leave you safe on a rainy day.

*Source: https://indianexpress.com/article/business/economy/india-cpi-retail-inflation-june-iip-factory-output-may-2022-nso-mospi-data-8025002/

ARN : ED/08/22/28514

Term Plan Articles Term Plan Articles

Investment Articles Investment Articles

Savings Articles Savings Articles

Life Insurance Articles Life Insurance Articles

Tax Articles Tax Articles

Retirement Articles Retirement Articles

ULIP Articles ULIP Articles

Health Plans Articles Health Plans Articles

Child Plans Articles Child Plans Articles

Popular Calculators Popular Calculators

Francis Rodrigues Francis Rodrigues

Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.

LinkedIn profile
Author Profile Written By:
Vishal Subharwal Vishal Subharwal

Vishal Subharwal heads the Strategy, Marketing, E-Commerce, Digital Business & Sustainability initiatives at HDFC Life. He is responsible for crafting and ensuring successful implementation of the overall organisation strategy.

LinkedIn profile
Reviewed By Reviewed By:

Here's all you should know about life insurance.

We help you to make informed insurance decisions for a lifetime.

Who Should Know Your Financial Secrets? Here’s Why It Matters!

Who Should Know Your Financial Secrets? Here’s Why It Matters!

Know who in your family should be aware of your financial secrets. Understand why sharing financial information is crucial for securing your family's future.

How Rising Interest Rates Impact Your Investments—and What You Should Do About It

Preserving Your Investment: How New Tax Rules Affect Real Estate Sales Before 2024

Financial Freedom for Women Entrepreneurs: Unlocking Success with the 50-30-20 Strategy

Learn financial freedom for women entrepreneurs with the 50-30-20 strategy. Discover expert tips for balancing dreams, responsibilities, and achieving long-term growth.

Financial Freedom for Women Entrepreneurs: Unlocking Success with the 50-30-20 Strategy
Why are Endowment Plans the Preferred Saving Tool? Previous
Making financial portfolio inflation proof for the working woman Next
HDFC life
HDFC life

HDFC Life

Reviewed by Life Insurance Experts

HDFC LIFE IS A TRUSTED LIFE INSURANCE PARTNER

We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance plans - protection, pension, savings, investment, annuity and health.

Disclaimer

HDFC Life YoungStar Udaan (101N099V04) is a Non-Linked, Participating, Life Insurance Plan. Life Insurance Coverage is available in this product.

Popular Search

Popular Searches