If you revisit some of the old sci-fi movies like Metropolis or 12 Monkeys, you find that they take place around the year 2030. This was supposed to be an era of the distant future. But for us, that future is nearly upon us. But since it is a good decade away, let’s find out what you can do to ensure that you are financially secure in 2030.

Inflation and price rise

In economics, inflation is the sustained increase in the prices of goods and services. For example, imagine that tennis ball costs Rs 10 today. You have Rs 100 with you at the moment. With this amount, you can buy 10 tennis balls. But due to inflation, the price of the tennis ball increases to Rs 11. This means you can buy only 9 balls. In other words, your purchasing power has decreased.

This can have a great impact on your personal finances over the long term.

A comparison of prices

The cost of everyday items can change dramatically over the years.

Cost of petrol (per litre)

YearCost of petrol (Rs)

Cost of diesel (per litre)

YearCost of diesel (Rs)

The price of all goods and services have dramatically changed from 2000. Everything: from the price of eggs to the price of education have witnessed a big spike.

Between the years 2008 and 2014, the average expenditure for education shot up by as much as 175% according to studies conducted by the National Sample Survey Office (NSSO). And this price rise is expected to continue in the future.

Here’s how you can tackle inflation

If prices are clearly surging ahead right in front of your eyes, is there nothing you can do about it? Well, fortunately you can! This is possible by carefully investing for the long term.

For instance, imagine that your bank offers you a 4% rate of interest on your savings. At the same time if the rate of inflation is around 6%, you would actually lose your purchasing power over time.

Instead, you can protect your financial future by investing in avenues that offer your returns that beat inflation.

Long term investments

In order to meet your future goals comfortably, it is essential to build a large corpus of money. You may have important future goals such as financing your child’s education or buying a home or creating a retirement fund.

Ensure that you don’t invest too conservatively for these goals. This is because you want to maximise your returns in the best way possible.

For instance, imagine you invest Rs 7,000 regularly each month over the next 15 years.

If the interest rate is 7%, you earn Rs 22.3 lakh at the end of the period


If the interest rate is 15%, you earn as much as Rs 47.5 lakh in the same period.

Clearly, by investing in avenues that offer higher returns, you can meet your goals much more easily. And the longer the time period, greater the returns you can earn.

Investing your money in equity is perhaps the best way to earn superior returns over the long term. You can invest in stocks or equity mutual funds for this purpose. But most importantly, it is best to start investing in these avenues as early as possible. This way, you can minimize your risks and maximize your earnings.


A litre of whole fat milk costs around Rs 52 today. Who knows, in another 12 years, the price could go up to Rs 200 (if not more). And if you wish to beat inflation­ and enjoy your daily cup of milk in 2030, it is high time you started investing.