Wednesday, September 19, 2012

Has the rupee really lost its value?

I was going to the market today. En-route I was thinking about the present state of the rupee and how it affects the exporters and the importers. Meanwhile, I saw two small kids, beggar types, playing. And playing with what - a rupee coin.

This left me questioning myself, has the rupee really lost its value? Perhaps, yes. We now pay more for all those things which used to cost pennies. Everything now seems to cost more. To spend more, we need to earn more. Uhh!

Now-a-days, even beggars don't accept one rupee coin. They don't even ask for it. They straightaway ask for 5 or 10 rupees. Rates of property is soaring high. Petrol, Diesel is getting dearer day-by-day. Fruits, vegetables and other edible items - everything is getting dearer. Small savings look like few water drops in a big lake (I won't say sea or ocean). Banks don't pay enough interest, yet they charge high interest rates for loans (Well that's their business).

In international business too, we now have to pay more to get a dollar. This is good for an export oriented economy but overall there should be a balance. One lakh rupees now is not a huge sum of money. People now want to talk in terms of tens of lacs or more than that. To buy a decent house or a high-end SUV, one needs to shell out lots of money.

Does this mean that only rich can afford the luxury? Or the poor person should not dream of a big house or a luxury car? No. It means that savings are now of utmost importance. Oh come-on. So that means I save all the money I earn and not enjoy with that money? You want me to just earn for my retirement plan and not live my life? Well, no. Everything has to have a balance. Don't ask me how to save. I am not an investment banker!

In a gist, Warren Buffet says - Earn, Save and then Spend.

All up to you!

- Vivek


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