How to beat inflation, according to CA Davinder Singh


Due to COVID-19 pandemic , there is sharp rise in prices of almost everything . Food inflation is all time high and most of the people are facing its heat. Here are my best suggestions for combating this situation.


Stay ahead : Self sustain your business

Today when petrol & diesel has seen 46% rise over 2 years ,cost of doing business has also increased . Reduce your working capital in debtors. Consider upgrading your business in terms of technology. Cut your staff cost by adapting digitization .Taking a bank term loan ( I repeat, term loan and not cc limit) is a good idea for expansion and to fight inflation as bank interest rates are much lower than the current rate of inflation.


Build your wealth : Invest in Real Estate ( especially built up property)


Today home loan is available at an interest rate as good as 6.50 % , while current inflation rate is more than this. Buy a home apartment with bank's money and rent it out. While our rental income shall take care of our loan EMI. Appreciation in property shall keep us ahead of inflation.


Unity is strength : Collaborate and pool resources to reduce your kitchen budget

We can reduce our kitchen bill by pooling resources. For example , MRP of a single Tetley tea bag pack is Rs 175/- . A single pack is available in retail at discounted price of Rs 158/- . When we do bulk buying of 36 packs , it costs us Rs 110/- ( A net saving of 43%) . Now consider , if a group of 5-6 friends/relatives/office colleagues start doing collective shopping from Best Price or Metro , a net saving from 25% -30% is there for sure !


Think Smart : Go Solar

Today a family of 4-5 members with three air conditioners at home spend approximately Rs. 1.80 lacs towards electricity expenses in a year . A 10 KW solar plant is worth Rs.4.50 to 5 lac today. We can get rid of our electricity bills for the next 15-20 years by installing solar plants at our home.


Finally , The Success Mantra !

Beating inflation is no rocket science . The key to success lies in investing in Productive Assets . If we’re concerned about rising inflation, let us spend wisely in productive assets instead of lifestyle expenditure . It shall help us in building our wealth and reduce our household and business expenses as well. The success mantra is "Just be yourself" and see your wealth grow and work for you.


Any questions ? Reach me at ca@davinderca.com





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