Investment advisor’s opinion on managing Personal Finances during currency devaluation

by Finway FSC Empowering People Financially

The Indian rupee in the global economic market continues to drop against US dollar since January 2018. Indian rupee is losing its value and becoming one of the weaker currencies in foreign exchange markets. Such a great volatility is the result of an increase in oil imports as well as a hike in crude oil prices, which made the US dollar stronger than ever. Concerning the common man of India, higher home loan EMIs, medical compensation, and costly foreign education and travel expenses might let him down. People who will bear the major brunt of currency devaluation are foreign travelers, students studying abroad, and Indian patients taking treatment/health services from foreign hospitals. Though the impact of weaker Rupee is evident on these groups, a more strategic spending can reduce the impact on their expenditure. Let’s follow some suggestions one by one…

To cut short the foreign travel expenses, the tour operators consider it a smart choice for Indians to book the tour and pay early the total costs involved, including the forex component. The forex component covers accommodation, meals, sight-seeing, and other perks other than simply the ticket bookings. Many prefer paying the forex component later on, and a few pay the complete package in advance. By following the latter one, one can definitely save costs during the foreign travel. Further, reducing the number of excursions, days to be spent, and carrying pre-paid travel cards help a great deal.

The students living abroad do not get any leverage on the tuition fees. At times, the tuition fees must be paid before the commencement of semester in many universities. And, the drop in rupee is surely a trouble for them. Therefore, most of the reputed financial advisors in Delhi suggest that students can pay the complete fee of the program whenever the exchange rate goes down. The students aspiring to study abroad should first look for the scholarships and part-time jobs to balance their fee and expenses. They can also opt for suitable education loans which increase the loan amount per semester with the increase in the semester fees. ISIC cards, specifically made for the students, can be availed when traveling and shopping at the stores.

Medical insurance is a necessity as a slight hike in the costs of medicines or consumables will put a dent on patients’ pocket. In hospitals, the costs of AC, flooring, and other facilities may increase due to the drop in the rupee. This, too, shall be added to the patient’s bill. Going abroad for medical treatment again requires a hefty amount of money. Health and Medical insurance bought as soon as possible is an intelligent move.

Hence, it is the opinion of the majority of financial advisors in Delhi that Rupee will remain unstable for couple of months and to cope with this unwanted situation people has to manage their personal finances very strategically and rationally.