top of page

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 Legend to Celebration: The Spirit of Onam

Onam is Kerala’s heartbeat, uniting people across caste, creed, and faith. Rooted in legend yet vibrant today, it reflects the warmth and richness of God’s Own Country.

ree

Onam, Kerala’s grand harvest festival, is rooted in legend and cherished in tradition. This celebration traces back to the legend of King Mahabali, the Asura ruler loved for his wisdom, compassion, and justice. His reign was a time of abundance and equality, where none went hungry or suffered. Threatened by his growing power, the gods sought Lord Vishnu’s help. Vishnu appeared as Vamana, a Brahmin dwarf, and asked Mahabali for three paces of land. With one step, he spanned the earth; with the next, the skies; and for the third, the noble king offered his head. Vishnu pressed him to the netherworld but granted him the boon of returning once a year. Onam celebrates this homecoming, a remembrance of a golden age of prosperity, harmony, and love.


The Ten Days of Onam

Onam is not a single-day event but a grand ten-day festival, usually falling in the Malayalam month of Chingam (August–September).


This year it is celebrated from Aug 26th to September 5th. Each day has its own significance, rituals, and vibrance.


Atham – The festival begins with the preparation of the pookalam (flower carpet). The first layer is laid on this day, symbolising the arrival of King Mahabali.


Chithira – More flowers are added to the pookalam, making it more elaborate and colourful.


Chodhi – Families start shopping for new clothes and gifts, and the festive mood deepens.


Vishakam – Considered an auspicious day for markets and trade, households begin stocking items for the grand feast.


Anizham – Preparation for the Vallamkali (snake boat race) begins, one of the most exciting spectacles of Onam.


Thriketa – Families gather, and cultural programmes begin.


Moolam – Traditional art forms like Pulikali (tiger dance) and Kathakali performances are held.


Pooradam – Clay pyramids symbolising Mahabali and Vishnu are placed in homes.


Uthradam – Known as the “first Onam”, it is a day of last-minute shopping and festivity.


Thiruvonam – The main day of celebration, when families come together for prayers, feasts, games, and cultural festivities, welcoming Mahabali into their homes.


The Grandeur of Onam Celebrations

1. Pookalam – The Flower Carpets: The pookalam is a striking symbol of Onam. Families craft intricate floral designs at their doorsteps, each day larger and more colourful. The fragrance and symmetry express devotion and joy, while contests in schools and communities add to the festivities.


2. Onam Sadya – The Grand Feast: No Onam is complete without the Onam Sadya, a vegetarian feast served on banana leaves. Often spanning 20–25 dishes—from rice and sambar to pickles, papadam, and payasam—it is more than a meal; it is a sensory celebration of Kerala’s culinary heritage.


3. Vallamkali – Snake Boat Race: The Vallamkali, or snake boat race, is among the most thrilling events of Onam. Long, sleek boats rowed in unison by hundreds of oarsmen cut through Kerala’s backwaters, cheered by thousands. A breathtaking display of teamwork, strength, and unity.


4. Pulikali – The Tiger Dance: Pulikali, literally “play of the tigers”, is a colourful folk art where performers paint themselves as tigers and hunters, dancing to the beats of drums. Streets come alive with laughter and cheers as these dancers entertain the crowd, bringing energy and fun to the festival.


5. Kaikottikali and Cultural Arts: Women gather in circles to perform the graceful Kaikottikali dance, clapping rhythmically in unison. Traditional art forms like Kathakali, Kummatti Kali, and Thiruvathirakali are staged during Onam, keeping Kerala’s cultural heritage alive.


Beyond Kerala

Though rooted in Kerala, Onam is celebrated worldwide. From the Middle East to the US, Singapore to Europe, Malayalis gather to craft pookalams, share sadya, and stage cultural shows. Beyond nostalgia, Onam carries Kerala’s essence across the globe.


The Spirit of Onam

Beyond rituals and legend, Onam celebrates prosperity, unity, and equality. King Mahabali’s memory recalls a time without poverty, when love and justice ruled. Today, Onam urges us to rise above differences and foster harmony.


Onam is also a celebration of nature. Marking the end of the monsoon, Kerala’s harvest festival gives thanks for the land’s bounty. Greenery, blossoms, and fresh crops symbolise abundance and renewal.


Onam is more than a festival – it is a season, a spirit, a feeling. It is families reuniting, flowers in courtyards, children’s laughter, oars in rhythm, the sweetness of payasam, and above all, the hope that goodness returns. Each year, as Mahabali visits his land, Onam recalls the values of equality, generosity, and joy the world so needs. In the petals of the pookalam, the beat of drums, and the warmth of the sadya, Onam reminds us: prosperity is sweetest when shared.


Happy Onam!


(The writer is a tutor based in Thane.)

Comments

bottom of page