Before investing for the future, definitely calculate the inflation rate! Learn its easy process

Investment Tips: It is said that intelligent people are the ones who start doing future planning along with earning. Nowadays people look for such investment options in which they get maximum returns according to the future by investing. Many times, while investing, they take care of things like interest rate, safe investment, etc. But, they forget to calculate about inflation. In the last few years, inflation has increased very rapidly in the whole world including India. The biggest reason for this is the Corona epidemic and the Russo-Ukraine war. At present, retail inflation in India has crossed 7% in August. This is the 8th consecutive month that retail inflation has been above 6%. In such a situation, the biggest disadvantage of high inflation is that it reduces the value of your savings.

Inflation has a bad effect on savings
In view of the rising inflation rate, experts often advise people to invest their money only after calculating the inflation rate because rising inflation reduces the value of their investment. The higher the inflation, the lower your saving value. In such a situation, if you are planning to invest after 10 or 20 years, then it is very important for you to take care of the inflation rate at that time as well. You can use Rule of 70 to check the inflation rate. Through this, you will know that in how many years the value of your investment will be halved. Let us give you information about Rule of 70.

What is Rule of 70?
Through Rule of 70, you can easily calculate how soon the value of your savings will decrease. To do this calculation, you have to divide 70 by the current inflation rate. After this the value of your accumulated capital will be halved in that number of years. Let us understand you this calculation with an example. If the current inflation rate is 7 percent and you divide 70 by 7 then the result is 10. In such a situation, after 10 years, the value of total savings is reduced to half.

If your total deposit is Rs 20 lakh, then after 10 years its value will be only Rs 10 lakh according to the inflation rate at that time. In such a situation, experts often advise people to plan their investments keeping in view the inflation rate.

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