Inflation rose to 4.62% in October, resulting in distress among crores of Indian savers. Inflation can be defined as a generalized rise in prices which can affect your standard your living and of course, finances. As financial advisors, you must ensure that your clients can handle inflation otherwise they might end up in a debt trap. Here are 3 useful tips 1. Follow a budget Developing a budget for your clients and more importantly, telling your clients to stick to it is one of the best methods to deal with inflation. This will make sure that they keep track on their spending habits and don’t splurge beyond their limit. Financial experts must take into account things which are usually affected by inflation such as petrol, food items, clothes, etc. and set a spending limit. Ask clients to keep aside funds at the start of the month and adhere to the limit fixed so that they don’t dip into their retirement savings or emergency fund. 2. Stay invested for the long-term Gains from equities ...
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