<H1>Tips to cope up with rising inflation</h1>

Inflation reduce your purchasing power and also your net worth. Most of the Indian's budget has been disturbed due to rising inflation. Many are facing problems due to steep rise in most of the essential items. Recent petrol price hike has made the condition worse. It seems that inflation is not going to come down in near future and as per experts it may go up to its 13 year high at 9%. So it is better to be prepared to cope up with it by using some simple methods. Either you increase your earning or reduce your expenses to cope up with inflation. Here are some tips bu which you can beat inflation and remain relaxed:

• Reduce your household expenses to 70% of your total take home salary. You can cut down you expenses on unnecessary expenses like non seasonal fruits and vegetables. Saving electricity by using CFL than tube lights. Avoid buying expensive and unnecessary wardrobes. Avoid Partying outside as it is always costly.
• Housewives can start doing some part time job if possible to help generating some income for the family. If already in job then try to get a higher paying job.
• It is better to stay out of illiquid investments like bank fixed deposit and post office saving schemes, recurring deposits etc.
  
• Invest regularly to fulfill your long term goals. This could be your daughter's marriage, buying a house, Children's higher education etc. Your investment should be as such which gives good inflation adjusted returns. If you want 10 lacs after 12 years for your goal, assuming the inflation rate of 6% p.a you need to save 20 lacs till that time after adjusting inflation.
• The best way to fulfill your future financial liabilities is to have a proper investment plan.
• Equity related Mutual Funds are best for long term investment, because they give good inflation adjusted returns in long term as compared to other form of investments.
• Investment in Gold, gold jwellery, gold funds, gold coins are also good form of investments and are treated as hedge against inflation. There are also Gold ETF (Exchange traded funds) and gold funds which invest in gold index or gold mines companies respectively.
• Keep checking your portfolio of investments for returns. If you are not getting satisfactory returns then switch your investment to other options.
• One should not invest in equities or gold only but should have diversified portfolio. It should be in Gold, Equities, Mutual Funds, Debt Funds and Debentures etc.. At least your three months of your salary should be in liquid form.
  
• If you have invested in Equities and have long term financial goal then you should stay with your equity investment. Short term volatility in market is a natural phenomenon so you should not worry about short term bearish market. In long run equities are bound to give good returns.
• Keeping above points and tips in mind I hope you will be able to cope up with rising inflation and keep yourself relaxed.