In 2030, will you be able to afford your lifestyle?

In 2030, will you be able  to afford your lifestyle?

We all plan for our future, our education, our career path and even our next vacation trips are pre-determined. We try to control everything we can and hope for the best. But what happens when our plans fail?

The future is unpredictable, and so is the future cost of your consumables. You can, however, run some basic checks and understand whether you are ready to face the unexpected or not.

 Are you prepared for the unpredictable: Technological advancements and rapid expansion of industries have led to many job roles becoming completely changing or becoming redundant.

Machines are likely to replace a lot of functions which are manual now. Moreover, you may find yourself developing a disinterest or dislike for your job and take time off to pursue something else, travel, or start something of your own.

Whatever happens to your professional life, you will still want to have the same or a better lifestyle in the future. Some changes might come unexpected while some might be planned. You must thus, ask yourself — do I have enough savings to depend on for such situations?

 Your needs are going to keep growing: Let’s assume that you get a salary hike every year in your job at present. It serves all your needs and that of your dependants (if you have any). Take a moment here to ask yourself if you will need the same things five years from now.

For instance, did you need a digital wristband to measure your calorie intake, five years ago? Most likely not.

New and innovative gadgets have a way of creating a need for themselves in your life, and there will be many more such innovations coming into your life with time.

For example, your child may require an iPad for elementary school, compulsorily, 10 years from now. Thus, ask yourself this question — does my current income support these future needs which do not even exist at present?

 Can you afford your basic expenses 10 years from now: You need to ask yourself if you are insulated against inflation. You might be under the impression that all your necessities can be taken care of by your salary 10 years from now.

Have you ever wondered if the following needs will be priced the same even after five years?

Would an outing at a multiplex cost the same as it does today? A complete movie experience with family, with services at your seats, could easily cost you Rs 3,500 or more only five years from today.

Do you think you are prepared to cope with such rapid inflation? If the answer to any of this is “no”, then you must start thinking about alternate sources of income.

Though you have your present in control, the unpredictable future may bring unforeseen redundancies, which might render you poorer than you know. To navigate through multiple such planned or unplanned situations, you need to plan to generate multiple incomes.

One way to plan for long-term wealth building is to invest in mutual funds. You don’t need a large sum of money to get started, even a sum as low as Rs 1,000 invested every month can set you on the path to long-term wealth building.

(The writer is CEO at Scripbox)

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