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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.)

From Body to Bliss: Essential Yogic Principles to Know

Not mere exercise, yoga is much more than posture – it is the art of aligning the body with the soul.

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Yoga is not just a fitness routine or a set of postures. It is a complete science of living – connecting body, breath, mind, intellect, and spirit. Rooted in the wisdom of the Vedas and codified by Patanjali in his Yoga Sutras, yoga offers practical tools for harmony in daily life. To practise yoga meaningfully, it is vital to understand its core foundations. Let’s explore five key concepts that shape the yogic path: Koshas, Prana & Nadis, Elements, Chakras, and the Gunas.


Five Sheaths (Pancha Kosha)

Human existence is described in the Taittiriya Upanishad as five layers, or koshas.

Annamaya (Physical): Nourished by food, made of the five elements. Balanced with asana, kriya, and pranayama.

Pranamaya (Energy): Governs life force and connects body with mind through breath.

Manomaya (Mental): Seat of emotions and thoughts. Balance here brings emotional stability.

Vijnanamaya (Wisdom): Intellect and higher knowledge. Sharpened by study, reflection, and meditation.

Anandamaya (Bliss): Pure joy, closest to the Self. Experienced in deep meditation.

Yoga is essentially a journey from the physical to the blissful sheath.


Prana and Nadis

Prana is the vital life force. It flows through subtle channels called nadis. Of the 72,000 nadis, three are central:

Ida (moon): Cooling, linked to the mind.

Pingala (sun): Heating, linked to action.

Sushumna: The central pathway, balancing both and leading to spiritual awakening.


Breath practices purify these nadis, allowing prana to flow freely. Modern science mirrors this wisdom—alternate nostril breathing, for instance, is shown to calm the nervous system and balance both hemispheres of the brain.


Five Elements (Pancha Mahabhutas)

The body and the universe are made of the same five elements – “Pindi te Brahmandi” (the microcosm reflects the macrocosm).

Earth (Prithvi): Bones, muscles – grounding.

Water (Jal): Blood, fluids – flow and flexibility.

Fire (Agni): Digestion, energy transformation.

Air (Vayu): Breath, circulation – movement.

Space (Akasha): Sound, communication – vastness.


Balancing these through yoga brings health, stability, and cosmic harmony.


Chakras (Shat Chakra)

Seven energy centres line the spine, each with a seed sound (bija mantra) and unique qualities:

Muladhara (Root): Stability. Lam.

Swadhisthana (Sacral): Creativity. Vam.

Manipura (Solar Plexus): Willpower. Ram.

Anahata (Heart): Love. Yam.

Vishuddhi (Throat): Expression. Ham.

Ajna (Third Eye): Intuition. Om.

Sahasrara (Crown): Higher consciousness. Silence/Om.


Kundalini energy, coiled at the root like a serpent, rises upward through these chakras, awakening higher states of awareness. Each chakra not only supports spiritual growth but also reflects emotional health and personal expression.


Three Gunas

All of nature is guided by three qualities:

Sattva: Purity, clarity, wisdom.

Rajas: Energy, drive, restlessness.

Tamas: Inertia, ignorance, heaviness.


Through yoga, sattva is cultivated, leading to balance, calmness, and clarity. Even food and lifestyle choices affect the gunas—fresh, light meals increase sattva, while overstimulation or lethargy fuels rajas and tamas.


Yoga is far more than physical exercise. It is the art of aligning the microcosm within with the macrocosm outside. By understanding its core concepts – the koshas, prana, elements, chakras, and gunas – yoga becomes a tool for inner transformation. When practised with awareness, yoga not only changes how the body feels – it reshapes how life itself is experienced, helping practitioners live with greater balance, resilience, and joy.

(The writer is a yoga educator and researcher based in Pune.)

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