Impact of the Rupees fall

The Indian Rupee has been falling and recently reached levels of 69. The pundits were predicting a fall to 70 very soon.

This depreciation impacts our daily lives quite significantly especially because our country has a net trade deficit which means they import more than they export.

The stronger $ means that we need to pay more for petrol and diesel which again impacts our transportation costs and hence our inflation.

These high $ also impacts us if we plan to take international holidays and or send our children for higher education overseas.

This 8% depreciation can significantly impact our planning and can actually derail some of them.

These market changes will continue to come as surprises over the period of your long term financial plans and needs to be factored into ones planning.  One should not just take standard numbers ... but factor in a contingency of 10%.

When these changes hit you , you can plan to do two things..

1. Delay the expenditure... ( you cannot do that for education but of course you can delay a travel plan)
2 spend the money and improvise with your emergency funds and fill it up later with savings

Its not easy... to manage changes is life... but to try and plan for it...

Thats simplefinancialsense