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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 RTO officer to Rocket Science

Sujata Madke quits lucrative job to join ISRO

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Thane: In a groundbreaking achievement, Sujata Ramchandra Madke, a farmer’s daughter from the small village of Shirgaon in Shahapur taluka, has become the first woman from Thane district to be appointed as a Scientist at the Indian Space Research Organisation (ISRO), Bengaluru. What makes her story even more inspiring is that she voluntarily resigned from a secured government job as an Assistant Motor Vehicle Inspector at the Thane RTO to pursue her dream of contributing to India’s space program.

 

Sujata joined ISRO on May 27 as a Gazetted Scientist, marking a proud moment not just for her family but also for her district. Her journey from a humble village school to India’s premier space agency stands as a testament to perseverance, determination, and the power of dreams.

 

Born in the remote village of Shirgaon, located 15 kilometers from Shahapur in Thane district, Sujata received her early education at the local Zilla Parishad school the same school her father and grandfather attended. Her father, Ramchandra Madke, a former clerk at the Thane Zilla Parishad and part-time farmer, ensured that all four of his children received higher education despite limited resources.

 

Sujata’s academic excellence began early. She secured 94.91 per cent in her SSC board exams and 77.50 per cent in her HSC. She went on to complete her B.Tech in Mechanical Engineering from Dr. Babasaheb Ambedkar Technological University, Lonere, Raigad. Later, she worked as a Research Engineer in the Ministry of Education’s Virtual Lab Project (Phase III) at IIT Kharagpur and was also selected as an Assistant Engineer at MAHAGENCO.

 

She cleared the Maharashtra Public Service Commission (MPSC) examination and joined the Thane RTO as an Assistant Motor Vehicle Inspector. However, her passion for space research never faded. While working full-time at the RTO, she continued her studies late into the night, preparing rigorously for ISRO’s recruitment process. Her family still preserves the two sacks of books she used during her preparation a symbol of her relentless dedication.

 

Kalam, the inspiration

While Speaking to ‘The Perfect Voice’, Sujata said, “Dr. A.P.J. Abdul Kalam always said, ‘Dream big, and work hard to make those dreams come true.’ His words inspired me to never settle. Leaving a stable government job was not easy, but I had to follow my calling.”

 

Her father Ramchandra Madke expressed immense pride “She was the first in our family to step outside Maharashtra for education. Watching her serve the nation through science is the proudest moment of my life.” Her mother, Savita Madke, recalled Sujata’s childhood passion for painting and science, saying, “She used to say she wanted to be a scientist when she was just a little girl. Today that dream has come true.”

 

Sujata’s elder sister Chetna Sonawane added, “She would study for 8 to 12 hours every day. Among the four siblings, Sujata was always the most focused and determined.”

 

Before being selected by ISRO, Sujata had also made it to the interview rounds of top Indian institutions such as DRDO and BARC. Her recent appointment as an ISRO scientist is not only a personal milestone but also a landmark for young women across rural Maharashtra who dream of a career in science and technology.

 

Her hardworking parents and elder sisters were her source of inspiration during this journey. While working at RTO Thane all officers of RTO motivated her for study and RTO Hemangini Patil lso supported her for studies in office.

 

Her story is a shining example of how grit, family support, and an unyielding dream can take a girl from a remote village to the stars quite literally.

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