Making a monthly budget is no longer as easy as it used to be. 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 financial burden has increased on almost every front. The recent increase in the prices of food items and fuel has increased the concern of common families. Rising prices of food items and fuel are being considered as the main reason for the increase in retail inflation.
**Most impact on kitchen budget**
The rising prices of vegetables, fruits and daily-use food items are directly affecting the household budget. Things which were earlier available at a fixed price, now cost more. Reasons like heat, interruption in supply and increasing cost of transportation have further increased the inflation of food items. Many families say that their monthly ration budget has increased significantly compared to last year, while their income has not increased in that proportion.
**When fuel is expensive, everything becomes expensive**
The impact of rising prices of petrol and diesel is not limited to just the cost of driving. Higher transportation costs increase the prices of vegetables, milk, ration and other essential commodities. As a result, every increase in fuel prices impacts the common man’s spending at multiple 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, yet this expense is continuously increasing. A large part of the family’s monthly budget is being spent on essential items like school fees, books, uniforms, coaching and transport. This is further increasing the financial burden on those families who are already paying home loan, car loan or other EMIs.
**Impact on savings**
The main result of increasing expenditure is reduction in savings. Many families are forced to cut back on their investments or savings to meet daily expenses. In such a situation, families should keep an eye on their expenses and control unnecessary expenses.
What relief can come next?
If crude oil prices remain high and food supplies remain under pressure, the burden on household budgets may increase further. The biggest challenge for the middle class at this time is to maintain a balance between income and expenditure. From kitchen expenses to school fees and transportation expenses, almost every essential expense has increased.