Making a budget at the beginning of every month is no longer as easy as before. The cost of running a household for middle class families is continuously increasing. Be it kitchen expenses, children’s education or daily commuting expenses, the pressure on the pocket has increased on almost every front. The rise in prices of food items and fuel in recent months has increased the concerns of common families. Food and fuel costs are also considered to be the main reason behind the increase in retail inflation.

Kitchen budget most affected

The increase in prices of vegetables, fruits and everyday food items is having a direct impact on the household budget. The goods which earlier used to be available for a fixed amount, now have to be spent more for them. Heat, supply disruptions and increased transportation costs have fueled food inflation. Many families say that the monthly ration budget has increased significantly compared to last year, while the income has not increased in the same proportion.

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If fuel is expensive then everything is expensive

The effect of increase in prices of petrol and diesel is not limited to driving only. Due to expensive transport, the cost of vegetables, milk, grocery and other essential goods also increases. This is the reason why every increase in fuel affects the expenses of the common man at many levels. Experts believe that if pressure on energy prices continues, inflation may increase further in the coming months.

School fees and children’s expenses also increased

Education has always been a priority for middle class families, but now this expense is also continuously increasing. Necessities like school fees, books, uniforms, coaching and transport consume a large part of the family’s monthly budget. In such a situation, the financial pressure increases further for families who have home loan, car loan or other EMIs.

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impact on savings

The biggest disadvantage of increasing expenditure is that people’s savings are decreasing. Many families are having to reduce contributions to investment or savings schemes so that daily expenses can be met. In such a situation, families should calculate their expenses and control non-essential expenses.

What relief will there be next?

If crude oil prices remain high and food supplies remain under pressure, the burden on the household budget may increase further. The biggest challenge for the middle class at present is to maintain a balance between income and expenditure. From kitchen to school and transport, almost every essential expenditure has increased.