Prices rising! What can you do?

Rising prices can seriously dent our pockets and eat away the value of our savings unless we actively take steps to combat it.

Here are some smart, handy techniques to manage your finances as inflation heats up:

1. Try reducing ‘good to have’ spending
It is worth checking how we spend money occasionally. Expenses can be categorized into essential and ‘good to have’ or non-essential expenses. Essential expenses include rent, utility bills, loan repayment, and the like. Non-essential expenses are your lifestyle expenses- shopping, dining out every weekend, buying gifts, and more. Making conscious choices, such as eating out fewer times, and avoiding ‘feel good’ shopping would help cut costs. If you drive to work, consider carpooling or using public transport, which helps save fuel and parking costs. You may even think of giving up a few paid subscriptions that you do not use frequently.

2. Be a Smart Shopper
A little bit of planning can help you save big on your everyday expenses. For example:
o Prepare a grocery list at the beginning of the month and strictly buy items on the list. It will prevent impulsive, ad-hoc purchases.
o Supermarkets offer a discount on bulk buying of daily-use items such as detergents, shampoos, and more.
o Local brands are often available at a lower price. Thus, being “Vocal for Local” can be pocket friendly as well.

3. Try to limit credit usage
Avoid the urge to buy on a credit card using the ‘minimum payment’ clause. Credit cards typically carry high-interest rates. Credit card debt can quickly snowball if you are not careful.

4. Save and Invest more
At some point in time, we must have had our parents lecture us on 'Every penny counts”. Well, they are right (don’t ever tell them this). Save more to invest more. Keep aside some cash for an emergency. Invest the rest of your savings in avenues with the potential to beat inflation. You may start a SIP with as little as Rs. 100 and embark on your investment journey if you haven’t already. It will help you combat rising prices in the future.*

5. Create an alternative income stream
Take up a part-time job like tutoring to increase your income.

Prices have always been rising and will continue to do so. Save and invest more today, so you can live without monetary woes in the future.

*This material is created to explain basic financial / investment related concepts to investors. Mutual Fund does not provide guaranteed returns. Investors are advised to seek professional advice from financial, tax and legal advisor before investing.
This document represents the views of Axis Asset Management Co. Ltd. and must not be taken as the basis for an investment decision. Neither Axis Mutual Fund, Axis Mutual Fund Trustee Limited nor Axis Asset Management Company Limited, its Directors or associates shall be liable for any damages including lost revenue or lost profits that may arise from the use of the information contained herein. No representation or warranty is made as to the accuracy, completeness or fairness of the information and opinions contained herein. The material is prepared for general communication and should not be treated as research report. The data used in this material is obtained by Axis AMC from the sources which it considers reliable.
While utmost care has been exercised while preparing this document, Axis AMC does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. Investors are requested to consult their financial, tax and other advisors before taking any investment decision(s). The AMC reserves the right to make modifications and alterations to this statement as may be required from time to time.
Please note that not all mutual funds schemes offered by Axis Mutual Fund have this SIP feature of investment as small as Rs. 100. For complete information refer Key Information Memorandum (KIM) or Scheme Information Document (SID) of respective mutual fund schemes uploaded on the website. (Website link)

Statutory Disclaimer: Axis Mutual Fund has been established as a Trust under the Indian Trusts Act, 1882, sponsored by Axis Bank Ltd. (liability restricted to Rs. 1 Lakh). Trustee: Axis Mutual Fund Trustee Ltd. Investment Manager: Axis Asset Management Co. Ltd. (the AMC) Risk Factors: Axis Bank Limited is not liable or responsible for any loss or shortfall resulting from the operation of the scheme.

Mutual fund investments are subject to market risks, read all scheme related documents carefully.