How To Protect Savings From Inflation: Smart Money Tip For Men Above 50

Introduction:

Protect savings from inflation is both an art and a science; protecting your hard-earned money from inflation is a big challenge for you because family responsibilities like children’s education and medical expenses increase with time, and the purchasing power of your savings quietly decreases due to inflation. A bank balance that looks big today may not be enough tomorrow, because the prices of your daily needs, healthcare, and education are rising every year. That’s why knowing how to protect savings from inflation is very necessary.

 Why Men Between 50-60 Should Be More Conscious of Inflation

At this stage, retirement is about to corner regular income become a matter of concern, children’s marriage and their education costs increase day by day as their age increases. Giving quality education and their career development cost can demand large expenses. After 50, medical costs increased faster than inflation. Purchasing power of your savings cannot match inflation.` That’s why it is important to know the art of protect savings from inflation.     

Smart Way To Protect Savings From Inflation

1 Balance Safety & Growth

Balancing safety and growth means smart strategies with an ongoing process of managing risk to achieve success. At this stage, you can’t afford to take very high risks, but it is also true that you can’t keep all your money idle. For this, you will have to balance your investment like 40% in a safe instrument(FD, government-backed saving scheme, emergency fund), 40% in Moderate options(debt mutual fund, government bond), 20% in growth options(equity mutual fund,gold,real estate)

2 Use inflation-linked investments

Government-issued inflation bonds give security to investors to safeguard their principal amount and interest rate. Issuing these bonds helps investor to protect their money from the erosive nature of inflation.

          

3 Invest in Gold and Real Estate

Both have the power to beat inflation, but their ability to return is different. Gold can generate a short-term return in this place, and real estate can generate a long-term return. If you keep jewellery, coins, or biscuits, it is better to invest in digital , but if you want to invest in real estate, try to get rental income or try on that property which has the power to give a good return in future.

4 Control Lifestyle Expenses

At this stage, lifestyle inflation(spending more because you earn more)can hurt; spend only on that which are necessary. Avoid unnecessary EMI and control your wasteful expenses. Keep yourself away from loans.  

Manage  or Keep Emergency Fund

Always be prepared for any emergency, maintain yourself in such a way that any circumstances can’t force you to touch your long-term investment. Maintain your savings account with 6-12 months’ expenses. Any adverse situation can erode your savings, so be prepared for it.

Stay Financially Updated

The most dangerous part of life is when a man thinks that no improvement is needed for their future. Keep updated about your surroundings. If you want to be safe, then keep updated. Knowledge has the power to protect you and your savings. It’s important to learn about new savings schemes and investment options. Knowledge protects your money.

Final Thought

If you are reaching 50 is a milestone, but it also brings many responsibilities. Your acumen and experience play a big role in bringing success in your life. Many responsibilities like medical expenses, the child’s career and their higher education. You can’t fulfil these demands with your savings as long as you don’t protect your savings from inflation. For this, you will have to diversify your savings and will have to invest accordingly.

FAQ