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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.)

Kojagiri Purnima: The Moonlit Festival of Prosperity, Health, and Togetherness

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As the full moon brightens the night sky, homes across India come alive with devotion and celebration. Kojagiri Purnima, also called Sharad Purnima, blends spiritual reverence, cultural tradition, and nature’s beauty. Falling on the full-moon night of Ashwin (September–October), it marks the end of the monsoon and the start of a season of clear skies, cool breezes, and harvest abundance. This year, Kojagiri Purnima is observed on 6 October across India.


The festival’s name carries deep meaning. Kojagiri comes from the Sanskrit phrase “Ko Jagrati?”, meaning “Who is awake?” Legend has it that Goddess Lakshmi, deity of wealth and prosperity, roams the earth on this sacred night, blessing those awake and worshipping her with fortune and happiness. Another belief holds that Lord Krishna played the divine Raas Leela with the Gopis under the Sharad Purnima moon. It is also said to be the night when the moon’s nectar-like rays possess healing powers for body and soul.


Rituals and Celebrations:

1. Lakshmi Pooja and All-Night Vigil

Families perform Lakshmi Puja in the evening, offering prayers, lighting oil lamps, and decorating their homes with rangoli and flowers. Many observe a vigil, staying awake through the night to invite the goddess’s blessings of wealth and prosperity. Soft devotional songs and bhajans fill the air, creating an atmosphere of serenity and joy.


2. The Sacred Milk Offering

A highlight of Kojagiri Purnima is the preparation of special milk, usually flavoured with cardamom, saffron, and dry fruits. This milk is placed in silver vessels under the open sky to absorb the moon’s cool, nourishing rays. Consuming this moon-charged milk is believed to balance the body’s “pitta” (heat) and improve immunity after the humid monsoon months.


3. Community Gatherings and Singing

On this night, rooftops and courtyards become lively social spaces. Friends and families gather to sing, share stories, and enjoy the moonlight. In many regions of India—especially Maharashtra, Gujarat, and Bengal—people organise Kojagiri parties, with music, dancing, and the shared enjoyment of moonlit delicacies.


Maharashtra: The festival is celebrated with great enthusiasm. Families host “kojagiri milk parties”, staying awake together and exchanging wishes of prosperity.


West Bengal & Odisha: Sharad Purnima is also associated with the divine love of Radha and Krishna. Devotees observe fasting and sing bhajans dedicated to the Lord.


Uttar Pradesh & Bihar: People worship Goddess Lakshmi and place vessels of kheer under the moonlight, later distributing it as prasad.


Gujarat: Many communities combine Kojagiri with Garba dances and night-long devotional singing.


Scientific and seasonal relevance

Beyond mythology, Kojagiri Purnima also reflects ancient wisdom about seasonal health. The post-monsoon period brings a shift in climate, and moonlight is thought to have a calming, cooling effect on the body. Modern science acknowledges that spending time under natural moonlight can reduce stress. The nutrient-rich milk infused with moon rays is a healing tonic for immunity and digestive balance.


Relevance today

In a fast-paced world, Kojagiri Purnima offers a chance to pause and reconnect. The festival encourages us to:

  • Spend time under the open sky, appreciating nature’s simple wonders.

  • Strengthen family bonds through shared rituals and conversations.

  • Cultivate gratitude for prosperity and abundance.

  • Restore health by following time-honoured seasonal practices.


To keep this cultural gem alive for the next generation and to pass it down to future generations, we can:

Share Stories: Narrate the stories of Goddess Lakshmi and Krishna’s Raas Leela to children, sparking curiosity about their roots.


Involve Kids in Rituals: Encourage them to help prepare the spiced milk, decorate the pooja space, or design rangolis.


Blend Tradition with Modern Joy: Host small rooftop parties with music and games that celebrate both the full moon and family bonds. Teach the Science: Explain how moonlight and seasonal rituals promote well-being, so they see tradition as both meaningful and practical.


Kojagiri Purnima is more than a festival of rituals—it invites us to awaken to nature’s abundance, the moon’s healing light, and the warmth of human connection. Under the silvery Sharad Purnima moon, we are reminded that true prosperity lies in health, harmony, and shared joy.


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

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