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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 Ganesh’s Blessings to Ancestral Remembrance

Pitru Paksha bridges past and present, binding families and keeping the river of remembrance flowing.

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Soon after Ganesh Chaturthi, Hindus observe Pitru Paksha, a sacred fortnight honouring ancestors. This transition from Ganesh Chaturthi reflects the balance between devotion to deities and reverence for our ancestors. Life is often marked by festivals of joy, but Pitru Paksha calls for reflection. Culminating in the powerful Mahalaya Amavasya, it honours our roots and reminds us that countless lives paved the way for ours.


The origins and meaning of Pitru Paksha

“Pitru” means ancestors, and “Paksha” means fortnight. Falling in the waning moon of Bhadrapada (September–October), it is believed that during these 15 days, ancestral souls descend to receive offerings from their descendants.


Mahalaya Amavasya, the final day, is deemed most auspicious, as all ancestors are believed to accept prayers offered then.


Why do we do this? Because we are the continuation of those before us. Our bodies bear their genes, our homes their memories, and our lives their blessings. To forget them is to forget ourselves.


The Rituals

The key ritual of Pitru Paksha is Shraddha or Tarpana—offering water, sesame seeds, rice, and prayers to departed souls. Each is symbolic: water for purity, sesame for karmic cleansing, rice for nourishment, and feeding crows, cows, or the needy to extend blessings. It is less superstition than gratitude. When we feed the hungry or donate in the name of our ancestors, we are saying, "May the blessings of my forefathers continue as a chain of compassion and sustenance in this world."


The spiritual significance

Pitru Paksha is tied to Pitru Rin—the debt to our ancestors. Hindu thought speaks of three debts: Deva Rin (to divine forces), Rishi Rin (to teachers and sages), and Pitru Rin (to ancestors). Through Shraddha, we repay not with wealth but with remembrance, prayer, and gratitude. Satisfied ancestors are believed to bless us with health, harmony, wisdom, and prosperity; neglect, however, may cause Pitru Dosh—obstacles born of forgotten lineage duties.


Cultural and human essence

Beyond rituals, Mahalaya Amavasya is about gratitude and remembrance. How often do we pause to recall grandparents’ struggles, great-grandparents’ sacrifices, or values passed through generations? In a world rushing forward, Pitru Paksha reminds us: do not forget the roots while reaching for the sky. It bridges past and present, binding families and reminding children their story began long ago with those who toiled, dreamed, and prayed for their descendants.


Psychological and emotional healing

On another level, this period provides emotional healing. Many of us carry unresolved grief—loss of a parent, regret of not expressing love, memories of a loved one taken too soon. Pitra Paksha offers a collective, sacred space to release those emotions.


When we light a diya or offer food, we are not just doing a ritual—we are whispering, “I remember you. You live in me. May you be at peace.” This brings immense inner calm, closure, and strength.


Pitra Paksha Ritual Benefits

Blessings and Protection : Ancestors are believed to bless their descendants with guidance and prosperity. Removal of Obstacles Pitru Dosh is believed to be mitigated.

Inner Peace: Acts of remembrance bring emotional healing. Family Bonding Families come together in shared remembrance.


Charity and Compassion: Feeding the needy reminds us of our responsibility to society.


Passing It to the Next Generation

In today’s age, the task is not to abandon tradition but to reinterpret it. Teach Gratitude, Not Just Rituals: Say: “This is our way of thanking those who gave us life.” Simplify Practice: If full rituals aren’t possible, light a diya, offer water, or donate food—the essence matters.


Storytelling as Legacy: Share grandparents’ stories; children connect better to lived experiences than rites.


Use Analogies: Link it to Memorial Day, Remembrance Day, or Thanksgiving for relatability.


Create Family Rituals: Build a family tree, cook ancestral recipes, or share daily moments of gratitude.


In this way, we keep alive remembrance, respect, and rootedness.


Mahalaya Amavasya is more than a date—it is a philosophy. Life is a chain, not a line; we are continuations of countless lives. Gratitude to ancestors is gratitude to life itself.


In remembering them, we honour ourselves; in feeding others, we share their blessings; in teaching the next generation, we keep remembrance alive. On Mahalaya Amavasya, let us light a lamp, offer a prayer, and feed a hungry soul—not as a ritual, but as a whisper to our ancestors: “You are not forgotten. You live through me, and I pass your light forward.” Pitru Paksha is a time to honour our ancestors and seek blessings for future generations. May our ancestors' souls rest in peace, and may they continue to bless us.

(The writer is a tutor based in Thane.)

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