Value of money is basically what the money is worth that is what one can get or achieve or buy with it. Everyday the value of money decreases with inflation. With inflation the prices of everything goes up but the 100 rupees will remain the 100 rupees. It will not become 110 with inflation in fact now you won’t be able to buy the thing which could buy with 100 rupees. With passage of time the value of money is going to decrease and you will need more and more money to get things which you used to get with lesser amount.
If you are one of those who believe in saving money for future then i have bad news for you. The money which you are saving will stay the same in amount after 10 years but the rates of everything else will go up like rocket. Even after saving money in bank accounts you will get maximum of 3% interest annually which is not enough to keep up with the increasing prices. Thousands will stay thousands in savings accounts but their value would be of hundreds after 10 years.
Read also: 8 benefits of passive income
How to prevent the decrease in the value of money
The only to keep up with the increasing prices is to invest your money instead of saving. With investing your money you are allowing it to grow along with market. There are number of ways to invest money. You can invest in real estate, stock market, gold and many more options. With inflation and increase in prices your money value will also increase with these investments. Your money can grow more than 100% with right investment and you won’t have to worry about the increasing prices.
You don’t need large amount of money in order to invest. You can start investing with smaller amount and then as you understand investment and finances more you can increase the investment amount. With smaller amount you can invest in gold or stock market. These methods allow you to invest small amount and can give you good returns on your investment. The value of your money can grow substantially with good investment. Investment will help you become more financially stable and independent. It will also help you get better prepared for future.