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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.)

Overcoming Challenges: Solutions for Junior Doctors

Updated: Oct 22, 2024

Junior Doctors

For the last two months, we have all been reading about the rape-murder case of a young lady doctor in Kolkata. Being a doctor and a father of two daughters, I felt extremely dehumanised and furious.


In the aftermath of this horrific incident, nearly every television channel focused on boosting their TRPs by sensationalising the story. One channel repeatedly emphasised that the female doctor had worked non-stop for 36 hours. I couldn’t help but wonder, 'Has anything really changed in the past 30 years since I was a resident?' For doctors, this gruelling routine is the norm, and we rarely speak out. Administrators are aware but remain complacent because doctors don't complain. Meanwhile, the public remains oblivious to the reality and continues to suffer. This article delves into the challenges faced by junior doctors in India and offers potential solutions. Let’s explore them:


Challenge 1: The number of medical seats is significantly low—while the ideal doctor-patient ratio is 1:1000, in India, it stands at 1:1700.

Solutions:

A) increasing medical seats to align with the population

B) Retaining doctors within the country

C) Implementing policies to encourage doctors to serve in rural areas

D) Improve infrastructure and telemedicine facilities

Challenge 2: Excessive workload and extended working hours—Junior doctors face no fixed duty schedules or regular breaks, resulting in burnout and stress and an increased risk of medical errors due to mental exhaustion.

Solution: Establish fixed duty hours for doctors and make this legally binding. At the very least, law-abiding doctors will adhere to the rule if it is made mandatory.


Challenge 3: Dealing with pressure from seniors and inadequate mentorship—seniors often overburden juniors with excessive tasks, as they too face similar pressures. Some even delegate personal errands to juniors. Additionally, a structured learning framework does not exist for junior doctors.

Solution:

A) Senior doctors should be mandated to mentor juniors.

B) Residency programs must be strictly enforced, with a more structured and standardised curriculum that includes practical assessments.

Challenge 4: Low stipends, financial stress, and poor living conditions in medical colleges—most resident doctors come from lower-middle-class families and already face financial strain. Hostel and mess facilities in colleges are substandard, and the stipend is inadequate, especially compared to the heavy workload and high cost of living in cities.

Solution:

A) Increase stipend

B) Ensure better living conditions and infrastructure in medical colleges.


Challenge 5: Safety from violence—this has become a major concern, with doctors facing verbal and physical abuse on an almost daily basis.

Solution:

A) Junior doctors should receive training in communication skills and mob psychology.

B) Senior doctors should be present when delivering bad news, ensuring that it is communicated in the presence of junior doctors.

C) Increase the number of security personnel and install CCTV cameras in workplaces.

D) Enforce strict laws and ensure their implementation against violence.

E) All doctors should be trained in self-defence.


Challenge 6: Mental health issues—stress from senior doctors, long working hours, high expectations, and the pressure of caring for critically ill patients contribute to depression and anxiety among junior doctors.

Solution: Regular counselling

Challenge 7: Poor work-life balance―the demanding residency leaves little time for personal life, relationships, and self-care, leading to burnout.

Solution: Fix working hours and mandatory leaves.

Challenge 9: Limited resources and infrastructure in hospitals, particularly in overcrowded public facilities, lead to errors in the accurate diagnosis and treatment of critically ill patients.

Solution: Effective resource allocation and investment in infrastructure are essential.

Challenge 10: Administrative issues—delays in decision-making and inadequate allocation of funds contribute to increased stress for doctors.

Solution:

A) Streamline administrative processes

B) Ensuring clear, transparent, and efficient implementation of policies.


There may be other issues that need to be addressed; however, the major problems with us, the so-called intellectual doctors, are:

1) A lack of unity and a tendency towards selfishness.

A culture of tolerance that prevents us from openly discussing our challenges, allowing politicians and administrators to exploit the situation.


We must unite, speak out, and advocate for our issues. No one else will solve our problems; it is up to us to fight for ourselves. If we do not, we will be the ones ultimately blaming our sacred profession.


Jago Doctors! Jago!


(The author is a leading cardiac surgeon in Mumbai. Views personal.)

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