Okay, so let’s speak about the most universal thing currently—and that is
nothing but the performance of a related increase in price and the
subsequent decrease in the size of one’s wallet faster than one can say ‘pizza
at a party.’ Those days we used to buy Maggi for ₹10 and we used to count
the change. It is now ₹15, and it sometimes looks like your money is one
continuous circle falling into an abyss. This is what inflation looks like,
buddy.
But how do you really know how much inflation is already affecting you or
your day-to-day living? Oh, of course, the government has its pretty figures
but anyone with their head screwed on knows that ₹1000 now is equivalent
to what ₹500 was a few years ago. So here’s the tool that I think you could
use in order to better understand it: the personal inflation calculator. This
will help you get the rate of inflation you’re experiencing according to your
expenditure. And don’t let me tell you, it is not as monotonous as it may
sound—otherwise, Indian humor, like our street food, wouldn’t be included
in the dish!
Step 1: Know What You’re Spending On
First, therefore, it is important to know where your money is going. Try to
make note of all the things that you keep on spending your hard-earned
money on—rent, groceries, petrol, Netflix, the shoes you didn’t actually
need but bought. Anyway! Indian moms have always been reminding us
this line since ages: ‘Beta, paisa bachao’, but did we listen? No, because
shopping for clothes is the only form of therapy that is acceptable.
Your list might look something like this:
Rent (as you gradually watch your dream of having a house of your own slip
through your fingers).
Groceries (where Maggi, Parle-G, and, on a more recent note, onions are as
good as gold)
Commuting (auto walas enjoying the best life with ₹ 50 for one kilometer
ride)
Opportunity 1: Food Delivery (Swiggy and Zomato = Stop thinking about it;
they’re practically dating victims).
Media Streaming Subscriptions (as if anyone uses Doordarshan now).
Gym Membership (LOL, as if you go):
These are your expenses.
Step 2: We also have to find out the price change, which means,
yes, that math is involved.
So, now that you know what you are spending on, it is time to find out the
extent of their increase. Think about it: last year you could go around
shopping at a big bazaar for 2000 rupees and now 3000 is needed to make
yourself believe you have shopped.
Let’s take a couple of everyday examples:
Maggi: Originally cost ₹10, cost ₹15 now (and yes, inflation is a unity even
in matter of tasty noodles).
Petrol: Used to be ₹80/liter, now ₹100/liter, or has it become ₹105/liter
(because our bikes are not becoming any cheaper to operate).
Rent: Has your landlord hiked the rent by 10%? Of course he has. Every
year, like clockwork.
Step 3: Use The Formula (Don’t Worry, It’s Easy)
Alright, grab your calculator (or phone—because let’s be real, who uses an
actual calculator anymore?). Here’s the formula for calculating your
personal Inflation rate:
Personal Inflation Rate = New Price − Old Price ×100
—————————
Old price
Let’s break it down with an example.
● Old Price of Maggi: ₹10
● New Price of Maggi: ₹15
Inflation Rate for Maggi= 15−10
——– ×100 =50%
10
Boom! You just calculated inflation for your Maggi. Yes, that packet of
noodles is now 50% more expensive than it was last year. If only your salary
increased that much too, right?
Step 4: Crunch the numbers for yearly, monthly, daily, and
hourly inflation (hold your breath).
After learning inflation rates for each of your expenses, it is high time you
computed your overall personal inflation. This is where the reality kicks in,
my friends.
For every expenditure you make, proceed to multiply the percentage of the
general inflation rate by how much you spend on it per month. Then let all
these add up in order to arrive at a weighted average. Here’s a quick
example:
Let’s say you spend:
30850 on rent while rent raised with 10% and now I have to pay 1000 extra.
₹2000 on groceries, and prices of groceries increased to 1.2 * ₹2000 =
₹2400 from the increased prices.
₹3000 on petrol, and prices of petrol increased to 25% more (which is
₹750).
1500 to be ordered on Swiggy, and the prices for food delivery have been
hiked by 10 percent (₹150 because of the delivery charges!).
Total monthly spend before inflation: ₹16,500.
Total extra cost due to inflation: ₹2300.
Your personal effect of the inflation effect is ₹2300 per month or
approximately % 14. But as per the government, it is 6% higher and
everyone knows your personal rate is way, way higher because Swiggy and
rents don’t get influenced by these numbers. Classic.
Step 5: What’s Next? (Besides Crying)
But what can a person do knowing his or her personal inflation rate? Oh,
the first thing that needs to be done is not stress out on the problem. We are
all in the same sinking ship—all of us out here fending for ourselves with
jugaad. Here’s some good old Indian advice to deal with your personal
inflation:
Budget Like a Gujju: Though the only thing that can protect you from
inflation is a good budget. Now is the time to start counting every rupee like
a Gujarati.
Buy in Bulk: People across the globe but especially Indians have taken the
interpersonal buying specialization to a new level. Our aunties go for
kilograms of dal, rice, and atta at wholesale prices, so is your chance now.
Buying things when they are cheaper is an effective way of ensuring stock is
well stocked.
Ditch the Car, Go Desi: Petrol got you down? Ride a bicycle again or take
the metro like a true Mumbaikar feels the way you used to when you were
young. Conserves fuel, costs less, and you will be part of the saving our
nature campaign (bonus).
Meal Prep: No more Swiggy online food ordering at 12 in the night. Think
ahead about what you want to eat, cook one-on-one, and save lots of cash.
Invest Smartly: It reduces the value of money, including your savings,
which means it’s high time you started making serious deposits. From
stocks to SIPs, gold to mutual funds—make your money work by getting off
the candidate savings account, which always deteriorates. As the popular
advertisement-based detergent brand Nirma says, “Doodh si safedi, Nirma
se aaye!”
Conclusion: Inflation May Be Rising, But So Are You!
At the end of the day, inflation is just one of those things we have to live
with, like traffic jams or Bollywood remakes. But with your new personal
inflation calculator, you’re better prepared to handle it like a pro. Sure,
Maggi might be ₹15 now, but that doesn’t mean you can’t take control of
your finances.
So, go on, calculate your personal inflation rate, make smart choices, and
remember: no matter how high prices rise, your sense of humor should rise
higher. And if all else fails, there’s always Maggi—even at ₹15, it’s still a
steal.
Now, go share this with your friends before inflation makes even memes
expensive!