look news india
Everyone wants to become a millionaire in life, for which he invests money in various savings schemes ranging from the stock market. In today's time, having one crore rupees seems like a big deal. Especially about retirement, people think that one crore of retirement can be used to achieve every goal like buying a house.
Arranging funds for children's education or children's marriage expenses etc. But have you ever wondered how much will one crore rupees be worth when you retire in 10, 20 or 30 years? And will it be enough to achieve your goal? It is often seen that inflation reduces the value of money over time. The amounts that seem big today may not be that big in the future. Its value is not enough to meet the needs. Here we are telling you that if you retire after 10, 20 or 30 years and are planning to collect one crore, then how much will this one crore be worth at that time. How will inflation destroy your savings?
How does inflation reduce savings?
A crore rupees in your bank account today may seem like a lot, but it may not be enough to meet your financial needs in the future. This is because the value of money depreciates over time due to inflation.
Understand it like this
To understand how the value of money decreases with inflation, look at this example. If a car costs Rs 10 lakh today, its value will increase by a lot after 15 years. To get a better idea, think about how much you paid for groceries or rent 10 or 15 years ago and how much you pay today. That difference shows how inflation reduces the value of money. And that is why Rs 1 crore may seem like a lot today but may not be enough to meet future needs.
Then how much will one crore rupees be worth?
If we assume that the inflation rate will be 6 percent, then after 10 years the value of one crore will decrease to Rs 55.84 lakh. After 20 years, at an inflation rate of six percent, the value of one crore will decrease to around Rs 31.38 lakh. Whereas after 30 years, one crore will become around Rs 17.41 lakh. Suppose you earn a six percent return on these savings relative to the inflation rate, then you will not actually get any benefit.