Inflation vs Monthly Income: Is your income growing, or is inflation forcing your lifestyle to shrink? Do you comfortably maintain your lifestyle on your income? Your income of Rs 25,000, Rs 50,000, Rs 75,000 or Rs 100,000 may seem sufficient today, but it will not have the same value 10 years down the line. As inflation erodes the value of money, your monthly income may fall short of maintaining your lifestyle in the future.

In this story, we will show you the projections of the future value of your monthly earnings in the next 10, 20, and 30 years and how much extra you need to earn to maintain the same lifestyle in the same time frame if your current salary is Rs 20,000-Rs 100,000 and the inflation rate is 6 per cent.  

How inflation plays its role

Inflation erodes money value, and things become expensive.

As a result, a thing that costs Rs 1,000 today will cost Rs 1,060 if the inflation rate is 6 per cent.

In 10 years, its value will be Rs 1,791.  

How inflation erodes your income value

The same rule applies to your income also.

If you earn Rs 50,000 today, at a 6 per cent inflation rate, you need to earn Rs 53,000 the next year to maintain the same lifestyle.

In 5 years, your earnings should be Rs 66,911.28, and in 10 years, they should be Rs 89,542.38.

Calculations for story

Our story will have two phases. In the first phase, we will show how the value of your Rs 20,000 to Rs 100,000 monthly income will decrease in 10, 20, and 30 years at a 6 per cent inflation rate. 

In the second phase we will show how much extra you need to earn in the next 10, 20 and 30 years to maintain the same lifestyle. 

Value of Rs 25,000-Rs 100,000 monthly income in 10, 20, and 30 years

Extra amount you need to earn to maintain same lifestyle in 10, 20 and 30 years

(Disclaimer: This is not investment advice. Do your own due diligence or consult an expert for financial planning.)