Pay hike 8%, Inflation 8.1% !!???

It is a well known fact that IT companies are paying good. But pay hike this year (FY0809) in IT service companies has been in the range of 6-10%. One major player in services sector cut performance based pay by 25% last quarter; if this has been considered, actual pay hike will be much lower whereas inflation data released recently touched 8.1%. But highly inflated sectors like real estate are not factored into this inflation data though major chunk of money is going into rents and mortgage payments. Reduction in purchase power of money due to high infaltion is not been factored into pay hikes. So what to do to maintain same lifestyle?

- Look for high paying jobs
Almost all services companies are paying almost equal, so service to product companies, product companies to overseas job are the options.
- Cut expenditures by living frugally
Cut unnecessary expenditures by reducing frequency of eat outs, efficient use of vehicles and controlling consumerism
- Look for better investments which beat inflations
Capital market and real estate are potential inflation beaters. Capital market is entering into bear phase which has been confirmed by many market gurus. Real estate prices gone to eye popping level in tier I cities. So people with potential and guts can try out these ventures
- Look for additional job or new business ideas
Additional job or new business idea will get you additional pay check.

It is believed that IT employees drove the prices of everything in Tier I and II cities. It will be interesting to see how we are going to manage the current lifestyle with 6-8% hike and 8+ percent inflation. American job, American pay, American lifestyle and now its going to be American style credit-driven financial fate.

Meanwhile, enjoy wage-increase cartoons here…

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