Future planning requires considering rising costs of living and inflation. The document discusses how assuming an annual inflation rate of 12%, expenses that cost Rs. 20,000 per month currently would equate to Rs. 1,92,000 after 20 years to maintain the same standard of living. It emphasizes starting health and life insurance coverage early to cover increasing risks. It outlines seven habits of ineffective investors like not saving regularly or planning investments. The document provides self-assessment questions on spending, savings, debts, and financial planning and introduces maXpertz Wealth Managers for financial planning solutions.
7. Watch out for cost of living If a family currently spends Rs 20,000/month on expenses, the following illustration gives a projection of expenses after 5,10,15, 20 years which will equate to current expenses. Eg., If I spend 20k/month, after 20 years I need Rs. 1,92,000 to meet the same expenses at an assumed inflation of 12%. India is a rapidly growing economy. In any high growth economy, the inflation tends to stay at higher levels.
8. Rising cost of living* in our day to day life… Rate of inflation for the essentials assumed at 12% PA. These prices provide an indicative view of the future. The future costs can be impacted by the demand/supply factor which can potentially push up the prices of the essentials like the current onionomania.
9. Rising cost of living…. Rate of inflation assumed at 12% PA.
14. As the age increases, the risk and the cost of health care also rises significantly… A comprehensive health cover can cover the health risks and costs…