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By:

Kaustubh Kale

10 September 2024 at 6:07:15 pm

Silent Money Killer: Loss of Buying Power

In personal finance, we often worry about losing money in the stock market, dislike the volatility associated with equities or mutual funds, or feel anxious about missing out on a hot investment tip. Yet the biggest threat to our wealth is far quieter and far more dangerous: loss of buying power. It is the invisible erosion of your money caused by inflation - a force that operates every single day, without pause, without headlines, and often without being noticed until it is too late....

Silent Money Killer: Loss of Buying Power

In personal finance, we often worry about losing money in the stock market, dislike the volatility associated with equities or mutual funds, or feel anxious about missing out on a hot investment tip. Yet the biggest threat to our wealth is far quieter and far more dangerous: loss of buying power. It is the invisible erosion of your money caused by inflation - a force that operates every single day, without pause, without headlines, and often without being noticed until it is too late.
Inflation does not take away your capital visibly. It does not reduce the number in your bank account. Instead, it reduces what that number can buy. A Rs 100 note today buys far less than what it did ten years ago. This gradual and relentless decline is what truly destroys long-term financial security. The real damage happens when people invest in financial products that earn less than 10 per cent returns, especially over long periods. India’s long-term inflation averages around 6 to 7 per cent. When you add lifestyle inflation - the rising cost of healthcare, education, housing, travel, and personal aspirations - your effective inflation rate is often much higher. So, if you are earning 5 to 8 per cent on your money, you are not growing your wealth. You are moving backward. This is why low-yield products, despite feeling safe, often end up becoming wealth destroyers. Your money appears protected, but its strength - its ability to buy goods, services, experiences, and opportunities - is weakening year after year. Fixed-income products like bank fixed deposits and recurring deposits are essential, but only for short-term goals within the next three years. Beyond that period, the returns simply do not keep pace with inflation. A few products are a financial mess - they are locked in for the long term with poor liquidity and still give less than 8 per cent returns, which creates major problems in your financial goals journey. To genuinely grow wealth, your investments must consistently outperform inflation and achieve more than 10 per cent returns. For long-term financial goals - whether 5, 10, or 20 years away - only a few asset classes have historically achieved this: Direct stocks Equities represent ownership in businesses. As companies grow their revenues and profits, shareholders participate in that growth. Over long horizons, equities remain one of the most reliable inflation-beating asset classes. Equity and hybrid mutual funds These funds offer equity-debt-gold diversification, professional management, and disciplined investment structures that are essential for long-term compounding. Gold Gold has been a time-tested hedge against inflation and periods of economic uncertainty. Ultimately, financial planning is not about protecting your principal. It is about protecting and enhancing your purchasing power. That is what funds your child’s education, your child’s marriage, your retirement lifestyle, and your long-term dreams. Inflation does not announce its arrival. It works silently. The only defense is intelligent asset allocation and a long-term investment mindset. Your money is supposed to work for you. Make sure it continues to do so - not just in numbers, but in real value. (The author is a Chartered Accountant and CFA (USA). Financial Advisor.Views personal. He could be reached on 9833133605.)

Australian women’s love for sport

Australian women’s love for sport

Australians love a good sport story, because we love our sport. While many of us think of sporting narratives playing out on fields and courts, there are some wonderful sporting stories captured in our country's rich literature. And just as women have always been playing sport, they have also been writing about it. Here are some books by women and non-binary writers for your summer reading list. They look at sport in a range of ways. Whether you enjoy histories, non-fiction, poetry, crime or even romance, there is a sporting story to suit all readers. These books seek to connect with diverse sports fans, or anyone looking for something a little different.


Footy in literature

When we think of books about Australian rules football, we tend to think of the many memoirs, biographies and other non-fiction works documenting the game's history, cultural influence and place in collective memory.


Despite the game being the country's dominant football code, it has not strayed too far into the world of fiction. Fictional footy narratives are rare.


The first women's Ashes

Marion Stell's The Bodyline Fix: How Women Saved Cricket delves into a fascinating yet often overlooked chapter of cricket history. The book explores how Australian women cricketers in the 1930s played a crucial role in restoring the integrity of the sport, following the infamous men's Bodyline series of 1932-33, which strained relations between Australia and England.


Stell is one of Australia's foremost sports historians. She has gathered the stories of women's sport in Australia, tracking down documents from scrapbooks kept by athletes and their families, mining storage units and garages for historical gems, and peering through miles of microfilm.


She is the author of the germinal book Half the Race: A History of Australian Women in Sport (1991), and her co-authored work with women's football pioneer Heather Reid, Women in Boots: Football and Feminism in the 1970s (2020), is also excellent reading.


Whole of My World by Nicole Hayes (2013)

These books depicted the ways women work to connect with the game and the joy that fandom can bring. They also examined the dark side of the sport, such as the effects of toxic masculinity.


More recently, Sarah Thornton published Lapse, a crime thriller set in rural Australia, where the protagonist, former lawyer Clementine Jones heads to the country and ends up coaching at the local footy club.


Lapse is an interesting look at Australian rural life, racial tensions in small communities and the dynamics of country footy through the tropes of the thriller genre.


The novel has lots of suspense to keep you turning the pages. The plot is a refreshing take on the “stranger arriving in a small town with a secret”, featuring a woman protagonist who comes into a hypermasculine environment.


Matildas' momentum

Who didn't get caught up the excitement of the 2023 FIFA Women's World Cup? One of the successes of the event was how many new fans were welcomed into the women's football family.


Football historian and academic Fiona Crawford has been busy over the last couple of years documenting the increased focus on Australia's national women's team the Matildas.


She published The Matilda Effect (2023) in the lead up to the 2023 FIFA Women's World Cup. She also co-authored Never Say Die: The Hundred-Year Overnight Success of Australian Women's Football (2019) with Lee McGowan, which is another great read.


First Nations people and sport

Personal Score: Sport, Culture, Identity by Ellen van Neerven is a compelling blend of memoir, poetry and cultural commentary.


Personal Score is incredibly powerful, alternating between intimate reflection and sharp political critique. It explores what it means to play sport on stolen land, to love football – and questions the game's colonial history.


Tennis anyone?

Romance fiction book sales are on the rise. You might be surprised to learn that sports romance has become a major player in this growing market – so much so that from February 28 to March 2, 2025, the world's first Sports Romance Convention will be held in Minneapolis, USA.


As we gear up for the Australian Open, a timely title is Abra Pressler's Love and Other Scores. Pressler tells the story of an international tennis star with a secret coming to compete in Melbourne's grand slam tournament. When he falls in love with a local, he finds he can't hide his secret much longer.


Pressler's novel explores how diverse sexualities are still stigmatised in men's sport, at the same time as it depicts an environment where there are more intersectional identities. And of course, as is necessary in the romance genre, it gives us a “happily ever after” ending that allows us to imagine a sporting world where these issues are not only resolved, but celebrated.

-The Conversation

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