Education planning : Every one rupee slide against pound inflates my budget by Rs 20,000 ( 4 lac rise in 4 months !!! )

Dated : 3rd Sep, 2013

Source : BS

Story of Shubhashish is a journalist who is now pursuing Masters in International Studies and Diplomacy in London

"Imagine a product you have been meaning to buy for a long time. Something that is not a luxury but a necessity. 

It costs ? 19 and you can’t afford it. 

You burn many a midnight oil in careful planning for raising this money. You take help from friends, family and strangers. Then one final day when you have successfully found the money, you go to the shop to buy only to find out that...

Now it costs ?23. 

Now add five zeroes to the above mentioned figures.

This is the story of the rupee impact on my postgraduate plans.

Six months ago when I sat down to budget this MA plan I had to take a worst-case scenario. I took Rs 100 to a pound. In hindsight I feel like the best economist India never had!

Today, this nightmare of the rupee’s vertical fall has come true. 

Every time the pound gets dearer by a rupee, my budget gets inflated by Rs 20,000. 

In February, the exchange rate was around Rs 82 to a pound. Even if we take Rs 102 as the today’s rate, I lose Rs 20,000 on every 1,000 pounds. 

That is Rs 4 lakh on the minimum 20,000 pounds that I need. 

If I go in the exact calculation then this amount will go up to Rs 5 lakh but I refrain for the sake of my fragile heart.

It is not that I don't have this money. It is just that how the situation has turned so dramatically just in a matter of months. Four to be precise."

Read full article at : http://www.business-standard.com/article/specials/everytime-pound-goes-up-by-a-rupee-my-budget-is-inflated-by-rs-20-000-113090300393_1.html