Your Savings will Crush You

Kishore Vishwa
4 min readMar 21, 2021


If you had ever thought that your savings will save your future, then you were always wrong.


Fuel prices in India are facing a record-breaking hike. A sub-urban country like India needs time to adapt to such price hikes, as the majority of the Indian population considers fuel as their prime expense and relies on it.

Though it is trouble in the present situation- after a few years, the circulation of money in the economy adjusts itself to the change that happened over time. But one thing that it will leave as a scar is “Inflation.”

The price of raw materials has risen by a few percentage points as freight traffic has become more roadside — and fuel prices have risen. It also increases the price list of other end products.

A small stimulation from the fuel prices will bring immediate and long-term effects in the society, unlike any drought, natural calamities, or war that could bring. Other forms of stimulation may last until the complexion gets eased.

But a stimulation in price by a government will never go down as many actions & plans are on the income from that price tag. Even though there is an option like GST — in a country like India, it’s hard for any government to bring back such moves. So, price rise hits harder.

In a global market, inflation is unavoidable. No matter how good the economy is running — based on the imports and exports in the country, money loses & gains its value. So, the value of the currency fluctuates through consumption in that place.

For example — let’s consider the import and export differentiation with America and India.

Initially, Dollar (American) is equal to Rupee (Indian); that’s $1 = 1₹.

While doing transactions between them, they buy/sell based on the value of their cash. Their money exchanges will be taken care of by a neutral exchange corporation/bank.

When India imports more products from America, the exchange firm would have more Indian currency than US dollars. If this keeps happening, then exchange firms would hold more Indian currency. If this excess gets released for free, then it will increase improper liquidation in the local economy. (Money is printed based on the Gold reserve of the country. So, erroneous money printing is restricted)

So, to balance this situation, the firm will reduce the value of the Indian cash over US dollars to give back the holding money eventually. So, if the exchange has $50 & 150₹, then the rupee’s gets reduced to 0.3 on par with US $; So that they can eventually distribute the money back.

As the US is exporting more (producing more), it gains the privilege of spending less on buying Indian products.

It is how the exchange corporations work, and that’s how money’s depreciation is happening over imports and exports of a country. So, if you export more, your countries currency value would increase, and if you import more, then the cash will lose its worth.

It is why the government encourages their citizens to buy local products and to avoid exports (as much). This procedure reduces the inflation rate.

Savings would mostly be some money saved for emergency purposes. That emergency may vary from medical requirements, recession, natural calamities, war & many more.

This amount will be at the use of short-term benefits & tensions. Because anything planned for long-term use and returns get classified under Investments, not savings.

Savings are a backbone for those who dare, and it’s the only ailment for everyone who fears the future. Because no matter what you do — that savings will take care of your basic requirements. But the only enemy for such savings is “Inflation.”

Because after inflation’s hit, the exact budget you had for your groceries and other basic stuff can’t bring you everything you bought before. The amount you’re putting extra is the value that your money lost.

So, if you carelessly rely on your savings without a backup plan, you did not just end up ruining your future but your past as well (the time you used to save that).

How to save? & what are all the reasons to consider?

If you ever plan to save, then the first thing to consider is Inflation’s growth % with the Interest’s % for savings. That defines whether your savings are going in vain or adapting to the change.

The second & the last thing is the time limit you’re planning to use the savings and the saving method.

Whatever the type of savings it may be, it should not exceed beyond a year (due to psychological impacts that it may leave in the longer run, by altering your mentality to run slower). The more you save, the more it can give you a headache.

And even in that one year, the first six months of savings should be of cash; and the 2nd six months should be on gold. Gold will compensate for the money’s loss in value.

If you plan to extract money for more than a year, it should be a passive technique. The passive assets will increase its capital value along with the returns.

So, keep these in mind while going for savings, and save wisely (based on your lifestyle) to help yourself avoid ruining your future and your past.