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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.)

Karva Chauth: A Celebration of Love, Faith, and Togetherness

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Karva Chauth is one of India’s most cherished festivals, especially among married Hindu women. This age-old tradition goes beyond ritual, celebrating marital love, faith, and the bond between husband and wife. Rooted in history and culture, it continues to evolve, reflecting timeless values of trust, prayer, and unity.


Origins and mythological significance

The word 'Karva' means an earthen pot symbolising peace and prosperity, while 'Chauth' refers to the fourth day of the lunar month. The festival falls on the fourth day of the Kartik month (October–November) during the Krishna Paksha, or waning moon. This year, it will be observed on 10 October.


Legends surrounding the festival

There are different stories, yet all highlight faith, selflessness, and the strength of a woman’s resolve.


The Story of Queen Veervati: The most popular tale tells of Queen Veervati, who fasted for her husband’s long life but fainted from hunger and thirst. Her brothers, unable to see her suffer, tricked her into breaking the fast before moonrise. Her husband soon fell ill, and only after she observed the fast again with full devotion did he recover—symbolising the power of a wife’s love and prayer.


Mahabharata Connection: Draupadi is said to have observed Karva Chauth for the well-being of Arjuna, seeking blessings for his safety during times of war and crisis.


The Legend of Karva: Another story speaks of a devoted wife named Karva whose prayer and courage saved her husband from the jaws of death when he was caught by a crocodile, reinforcing the theme of a wife’s protective love.


The Preparations: A Festival of Beauty and Joy

The days leading to Karva Chauth are filled with excitement and heartfelt preparation. Markets brim with colourful bangles, intricate mehendi designs, and vibrant attire. Women shop for elegant sarees or lehengas, jewellery, and the traditional sargi (a pre-dawn meal prepared lovingly by mothers-in-law).


Sargi Ritual: Before sunrise, married women eat a wholesome meal of fruits, sweets, dry fruits, and other energy-rich foods. This is often accompanied by blessings from elders for a happy married life.


Mehendi & Adornments: Applying henna is almost symbolic of the festival. Mehendi patterns are believed to bring prosperity and strengthen the bond of love.


Decorating the Puja Thali: The thali used in the evening rituals is beautifully decorated with lamps, flowers, a sieve (channi), and the earthen karva filled with water.


The Fast and Evening Puja: The highlight of Karva Chauth is the sunrise-to-moonrise fast, where women abstain from food and even water. This is observed with immense dedication and positive energy.


Community Spirit: In the evening, women gather together in festive attire (red colour) for the Karva Chauth Katha (storytelling), singing traditional songs and rotating decorated thalis in a circle to bless each other.


Moonrise Ritual: When the moon appears, women view it through a sieve, then look at their husbands the same way, offering silent prayers for their well-being. Husbands then offer the first sip of water and a morsel of food, breaking the fast with love and gratitude.


Modern-day Karva Chauth

Traditionally observed by women for their husbands, the festival now sees many men fasting alongside their wives in a gesture of equality and shared devotion. It has transcended religions and borders, embraced by those who wish to celebrate love and togetherness. Couples exchange gifts, and families host gatherings, turning it into a collective celebration of affection.


Beyond the rituals

Commitment and Sacrifice: It emphasises the strength of relationships and the willingness to make heartfelt efforts for loved ones.


Faith and Spirituality: The day teaches patience, discipline, and trust in the divine.


Passing Down the Tradition: In an era of rapid change, festivals like Karva Chauth are precious links to our roots. Involving children in the decorations, storytelling, and evening rituals ensures the culture lives on. Sharing the significance of each ritual helps the younger generation appreciate the values of love, gratitude, and family unity.


Karva Chauth is more than a ritual fast; it celebrates devotion, trust, and the timeless bond between two souls. Whether observed traditionally or with a modern touch, it reminds us that love thrives on care, respect, and faith. As the moonlight graces the sky, Karva Chauth stands as a testament to enduring relationships and the cultural ties that unite generations.


This festival reminds us that marriage is not about who sacrifices more, but about how both partners nurture each other with patience, support, and respect. It celebrates mutual love, reciprocal care, and a bond that grows stronger with every sunrise and moonrise—turning a simple union into a lifetime of shared joy. Happy Karva Chauth!


(The writer is a tutor based in Thane. Views personal.)

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