top of page

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.)

Sanskrit’s Enduring Legacy

Updated: Oct 21, 2024

Sanskrit’s Enduring Legacy

Sanskrit, an ancient language with profound cultural and intellectual significance, is often hailed as the “mother of all languages.” Its influence extends beyond its historical context, impacting many modern languages and fields of study. Among its contributions are the well-known Indian phrase, Atithi Devo Bhava, (The guest is God) and Karma, a globally recognised concept referring to the idea that a person’s actions directly influence their future experiences. Both terms originate from the Sanskrit language.

With a rich literary heritage that includes the Vedas, Upanishads, and epics like the Mahabharata and Ramayana, Sanskrit has significantly influenced modern languages, particularly those in the Indo-European family. Its precise grammar and extensive vocabulary have made it a subject of study for centuries, and its mathematical structure even draws parallels with modern computer programming.

While there are no native speakers of Sanskrit today, it remains a revered ceremonial and ritual language in Hindu and Buddhist hymns and chants. Beyond its literary and religious significance, Sanskrit embodies a vast repository of knowledge in various fields, including science, mathematics, astronomy, medicine, and art. Its systematic approach to language has contributed to our understanding of various disciplines, reflecting its timeless relevance.

Organisations like Samskrita Bharati actively preserved and promoted this rich heritage. For over 43 years, Samskrita Bharati has played a pivotal role in teaching and revitalising Sanskrit, both within India and globally. Known for its unique direct method of instruction—teaching Sanskrit without translation—the organisation’s flagship program is a popular ten-day free conversation camp that has been running for decades.

Participants can advance their studies through classroom or distance education programs like Geetakendram and Patradwara Samskritam. For children, Samskrita Bharati offers structured programs such as Balkendram (fun learning) and Devavaani (textbook-based curriculum). Learning Sanskrit also helps improve proficiency in regional languages like Hindi, Marathi, and Gujarati.

`With over 4,000 locations in India and 25 countries globally, Samskrita Bharati engages with influential figures through initiatives like the “Sampark Saptaah” campaign. The organisation arranges conferences every three years and celebrates Samskrit Day on the full moon of the Shravan month. This year, Samskrit Day is on August 19, 2024, and will be observed as part of Samskrit Week from August 16 to 22, 2024.

As we look forward to events like Samskrit Week, we are reminded of the enduring power of this ancient language to inspire, connect, and unify us across cultures and time. Its legacy not only bridges the past with the present but also offers a timeless source of wisdom and cultural continuity.

(The writer is an official of Sanskrit Bharti. Views personal.)

Comments

bottom of page