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....

min read

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.)

Killing off 'Squid Game' characters is happiness, says writer

Alicia Rancilo
Dec 28, 2024
3 min read

Updated: Jan 2

Los Angeles: Viewers may gasp, cringe or cry out watching characters die on Netflix's “Squid Game”, but those simulated deaths have a different effect on its creator, writer and director. Instead, Hwang Dong-hyuk feels happiness seeing them go.

The show has a huge cast and Hwang says it was “really difficult” to manage everyone on set.

As characters would die, Hwang recalls saying to the actors on their last day, “'Oh no! How sad! I won't see you tomorrow,' but I was always smiling inside.”

“Squid Game” season two premiered Thursday. It once again stars Lee Jung-jae and centres around a secret competition in South Korea that targets people in debt and the winner gets a big cash prize. What they don't know is that losing the game is deadly.

Hwang originally conceived of the show 15 years ago as a two-hour film but it failed to gain traction with financiers or even interested actors. He put it aside and worked on other films instead. He then had the idea to make it a TV series instead and took the project to Netflix. There, it could reach a wide audience.

“I never in my wildest dream thought it was going to be this huge,” said Hwang, who spoke with the AP about the show and what comes next. Answers have been edited for clarity and length.

What have you learned from “Squid Game”?

I learned that I shouldn't give up. If you love something and if you want to create something, it might not work now, but the time might come later. Or that idea could be the source of inspiration for something else.

You've already finished filming season three of “Squid Game”. Have you thought about what your next project will be?

I'm afraid to talk about it but it's a feature film taking place 10-20 years in the future. It's darker than “Squid Game”. It's going to be quite cruel, quite sad, but at the same time quite quirky and humorous.

What films and TV shows do you enjoy?

I used to think you had to have a specific taste to be cool, but I actually think I'm very omnivorous. I like to watch anything. When I'm on the couch watching TV, sometimes I watch CNN or Fox News. And then National Geographic and nature documentaries, I also watch some very soapy Korean shows or reality TV as well. I hop around and watch everything that's kind of happening in the world.

With a series, I often don't stick with it the whole way through. There's only about like five shows that I watched until the very end, like “Breaking Bad” and “Why Women Kill”.

Would you ever want to direct a US production or Hollywood actors?

Of course. I studied film school at the University of Southern California and there are so many people I'd love to work with. I have had those offers since “Squid Game”, but because I'm a writer-director I think I'm best when I'm working with Korean actors, giving direction in Korean with my Korean script. But, if I come across an amazing scrip, why not? I'd love to work with Jake Gyllenhaal.

There are more characters in season two of “Squid Game”. Why is that?

With seasons two and three, I had more screen time for more characters. This time around we have a lot of younger characters. When I was creating season one, I thought it was very hard for you to be up to your neck in debt when you're only in your 20s or 30s.

I thought you had to be at least middle-aged to need money and want to join the Squid Game. But the world has changed. Now I feel like there are less decent jobs for young people and they feel like working hard doesn't even get them to middle class. They want to hit the jackpot, so that's why they invest in cryptocurrency.

In Korea, there are a lot of young people in their early 20s or 30s turning to online gambling. I wanted to show what society really is like today.

Season two of “Squid Game” has already been nominated for a Golden Globe which is a good sign. Can you say anything about season three of “Squid Game”?

It's better than season two.

-AP

2 Comments

Katrin Jess

Jun 06

Dude, if you're into gaming, you’ve gotta stop wasting time on boring sites that look like they were made in 2005. I recently switched to sky247 app and man, it’s cool. You get real-time updates, fast betting options, and it runs smooth as butter on my phone. I mostly use it for cricket and football, but there's way more. Plus, the welcome bonus is actually insane — like over 10k INR. It's super easy to download, and once you're in, you’ll never go back.

Jack Hollington

Mar 03

Bonus programs are a key element of online gambling. Free spins, cashback, exclusive offers for VIP players - all this makes the game more profitable and longer lasting. You can find out how to play Live casino online. Experienced users know that competent use of bonuses can significantly increase the chances of winning.