My Shrinking Purse – The Curse of Appreciating Rupee! (Understanding Exchange Rate and its effect on Income)

Since few who read this blog earn in currency other than Rupee or have earned at some point in their lives in a currency other than Rupee, I wonder if exchange rate fluctuation has caused anxiety to you.

Since a part of my earnings is in US Dollars and expenditure is in Rupees; and since the Rupee has been appreciating for the past one year while Inflation is running on a high…my purchasing power has taken a hit on 2 counts:

–    My income has reduced because as an exporter of services, I do not earn as much as I used to because of appreciating Rupee.

–    My expenditure has increased because for a Rupee spent on a purchase, I need more Rupees today for the same purchase because the price of same goods/services has now inflated.

My Purse has Shrunk! I call this loss “The Curse of Appreciating Rupee”. I empathize with all of you who now realize that even your purse has shrunk a little.

Today allow me to cursorily surf through the dynamics of exchange rate and how it affects our income. Continue reading “My Shrinking Purse – The Curse of Appreciating Rupee! (Understanding Exchange Rate and its effect on Income)”

Term Insurance Plans in India – Quick Review

Yesterday I saw a TV commercial where Irfan Khan is trying to protect a hassled man from getting drenched in rain with a tiny umbrella. The advertisement mocks our habit of taking insurance cover for far lesser than what we should actually have. With increasing cost of living and greater financial liability of individuals, it is evident most of us need to insure self and family to far greater extent than we presently do…lest we might get drenched in hour of need. Surprising, contrary to popular believe, Term Insurance is not an expensive proposition with TERM INSURANCE PLANS. Typically for a cover of INR 50 Lakhs, yearly premium works out to as less as INR 10000! Continue reading “Term Insurance Plans in India – Quick Review”