Investment

Can you recall the exact price you paid for a product a decade ago?How much has it changed, and why does it matter?While there could be many reasons for that, one of the most definite reasons is that a strong dollar makes the INR weak and imports expensive, leading to higher inflation in India.The current value of the INR against the USD changes everyday based on economic activities. The debate of the USD Vs. INR has been going on for ages. It has been an important topic of discussion for those who often travel and have to actively do currency exchanges.Who else is it important for? For investors who want to make the most out of their bucks.The INR in the recent past has fallen to the lowest of levels ever in history. In 2022, the rupee emerged as the poorest-performing currency in Asia, experiencing a decline of approximately 10% against the U.S. dollar.This drop was primarily attributed to the strengthening of the U.S. currency, driven by its safe-haven appeal amid concerns about global recession, inflation, and the conflict between Russia and Ukraine.At present in 2023, 1 USD = 83.13 Rupees. Why exactly has the INR been falling against the USD? The investor personality that prefers U.S. investments has dramatically increased its demand. Investors want to invest in a stable economy and the U.S. offers just that!The macro-economic stability of the U.S. has attracted many investors from around the world, especially India. Macro-economic stability describes the stability of a country’s economy, where fluctuations in the economy is miniscule or absent. The U.S. has always had a stable output growth and stable inflation, making the country an attractive source for investors seeking safe investments.What sets the U.S. apart, especially in the aftermath of the unforeseen pandemic is its ability to weather economic storms and provide a haven for risk-averse investors. The global financial landscape witnessed a paradigm shift as individuals and institutions alike sought investments capable of mitigating risk. ALSO READ: Indian Rupee Vs. U.S. Dollar: How the Dollar Strengthens and Makes the U.S. Real Estate More Attractive for Indian Investors In this climate of uncertainty, the has U.S. emerged as a preferred destination for secure investments worldwide. Investors have increasingly turned to options within the U.S. market, drawn by the prospect of safeguarding their financial portfolios amidst turbulent times.Contrary to pessimistic forecasts, the US economy defied expectations in 2023, with […]

Ah, payday – that glorious moment when your bank account does a happy dance.But have you ever wondered, “What’s next?” How does one ensure that their hard-earned cash doesn’t vanish into thin air?For many people, their financial journey begins with the management of their paychecks. It’s a foundation upon which they build their financial stability and future. For instance, 50% of Gen Zs and millennials say they live paycheque to paycheque according to a survey by Deloitte. This statistic sheds light on the financial realities faced by a significant portion of our population. It raises questions about financial literacy, budgeting, and the overall state of personal finance.This is where the 50/30/20 Budget Rule comes into picture. What is the 50/30/20 Budget Rule? The 50/30/20 rule is a popular budgeting guideline that helps individuals allocate their income into three broad categories to manage their finances effectively. It’s a simple and flexible approach to budgeting that provides structure while allowing for personalization based on individual circumstances.This rule simplifies budgeting by breaking down your monthly income into three main categories: needs, wants, and savings/investments. Disssecting the 50/30/20 Budget Rule (i) 50% – Needs Needs encompass those expenses crucial for survival and maintaining basic well-being. These fundamental requirements typically encompass housing, utilities, food, transportation, healthcare, and childcare. However, it’s important to note that there is room for personal interpretation within this category.For instance, when it comes to healthcare, some individuals might prefer public healthcare facilities while some would like to go to private hospitals in search of ‘the best’. Likewise, personal preferences can also affect your needs.Your needs aren’t just expenses; your needs reflect your individuality. (ii) 30% – Wants 30% of your budget is typically dedicated to your wants. Wants define your lifestyle. These expenditures that aren’t necessary for survival but add richness and vibrancy to your life. They include activities like shopping, dining out, entertainment, nightlife, and travel.Wants again vary from personal preferences. One could be a gadget freak and would want to upgrade their phones every year. While on the other hand, the wants of a parent could be something very different – owning a family car.However, this allocation of 30% to wants often sparks debates. Critics argue that a more prudent approach is to allocate 30% to 40% towards investments and savings, letting your ‘wants budget’ naturally grow as your financial means increase. Nonetheless, if you choose to stick with