Question 1

How much has inflation eroded my money's value?

Accepted Answer

At 6% average inflation, ₹100 in 2000 equals ₹370 needed in 2025 to buy same goods. Your parents' ₹10,000 salary in 2000 = ₹37,000 today. Items that cost ₹10 in 2000 now cost ₹30-40. Use our inflation calculators to see how gold, petrol, rent, and daily items have changed over decades. Understanding inflation helps set realistic retirement goals.

Question 2

Why does inflation matter for investments?

Accepted Answer

Inflation is the silent wealth killer. A ₹10 lakh FD at 6.5% interest vs 6% inflation = 0.5% real returns after taxes. Your money grows numerically but loses purchasing power. Equity mutual funds at 12% returns beat inflation by 6%, growing real wealth. Always calculate real returns = (Investment return - Inflation - Tax) to see if you're truly getting richer.

Question 3

How do I beat inflation with my investments?

Accepted Answer

Invest in assets that historically beat inflation: Equity mutual funds (12-15% returns), real estate in growing areas (8-10%), gold (8-9%). Avoid: Savings accounts (3-4%), FDs (6-7%), cash under mattress (0%). Rule of thumb: 70% of portfolio in inflation-beating assets (equity), 30% in stable assets (debt) adjusted for age and risk tolerance.

Question 4

What was inflation like in my parents' time vs now?

Accepted Answer

1970s-80s: High inflation (8-12% annually), ₹1 lakh was massive wealth, ₹5,000 salary was good income. 1990s-2000s: Moderate inflation (5-8%), economic liberalization. 2010s-2025: Lower inflation (4-6%), but asset inflation (homes, education) higher. Use our time machine calculators to see petrol prices, gold rates, and rent costs from your parents' era vs today.

Question 5

Will inflation make me poor even with a good salary?

Accepted Answer

Yes, if you don't invest. A ₹1 crore corpus today buys a comfortable retirement. In 30 years at 6% inflation, you'll need ₹5.74 crores for same lifestyle. Your ₹50K/month expenses will be ₹2.87 lakhs/month. Solution: Invest aggressively in inflation-beating assets. A ₹30K/month SIP for 30 years at 12% = ₹10.6 crores, comfortably beating inflation.

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