The Party Spoiler

I just talked about the way most of us save our hard earned money, by dumping them at a place which we think will save us in case of our financials needs. This is what I call the great Piggy Bank Concept that most of us follow. Even though you save in a real bank, I still term it as a waste, oh ya I remember the interest rate factor, even then I stick to my statement. Now, let me just list some of the party spoilers that could badly dent your savings and in turn your living.

Just as an instance, say, you want to buy something which costs Rs. X. So you divide the money into monthly instalments for a period of time and start depositing it in a bank. Now, you discuss your plan with your colleague who tells that the price of the item may be hiked but you smartly tell him that you have taken care of all that thinking about the interest the bank is going to give. Finally, the day comes when you withdraw your savings and go to buy that item, but soon you discover that the price of it now is Y and its much more than X + x; X is the original cost some time back which is same as the amount you saved and x is the interest you earned on it. The result, you cannot afford it. There you go you have just experienced the influence of what is called as inflation in technical terms which most of us ignore. This is one of the monster that eats up your savings. This is the same monster your mom keep talking about, the rising prices of commodities and consumer goods.

Inflation is one of the major party spoiler for someone who keeps accumulating money in a bank as his value of money gets eroded as the time pass by which will lead to a compromise in the life
style just to get the cost of living down.