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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.)

Solo Outings — An exploration

Being alone is not loneliness. It is the much-needed peace that follows celebration, noise, and fun.

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There comes a time when being alone stops feeling like loneliness. It starts to feel like peace. It’s a deep exhale after years spent surrounded by noise, opinions, and unmatched energy. Then solo outings turn into more than a walk or a coffee break. They become a celebration of self.


Stepping Out Alone

For most of us, going out alone once seemed strange. We believed outings were meant to be shared—with friends, family, or a partner. But solitude has a magic of its own. When you step out alone, you answer to no one’s timing, mood, or preference. You walk at your own pace and linger where your heart feels light. You hear the quiet conversations between your thoughts and the world.


A solo outing doesn’t need to be grand. It could be as simple as visiting a park, sitting by a lake, exploring a heritage walk, visiting a temple, or just sipping tea at your favourite café. The joy lies in being present — fully, peacefully, joyfully.


Discover Yourself Again

When you go out alone, something subtle shifts inside. You begin to observe—not just the world around you, but your own inner world. You notice what truly brings you comfort, what excites your curiosity, and what calms your soul.


You may realise that you love slow mornings, that you find peace in old architecture, or that a quiet bookshop feels more healing than a crowded mall. You begin to see how much of life you were missing while trying to fit into someone else’s rhythm.


Solo outings gently remind you that your own company is enough — more than enough.


Freedom From Social Energy

Let’s admit — being around people can sometimes be draining. Conversations that revolve around complaints, comparisons, or negativity leave us feeling heavy-hearted. On the other hand, when you spend a few hours by yourself, your energy resets. You stop performing for the world. You become your truest self — calm, curious, and comfortable.


In solitude, there’s no pressure to talk, impress, or respond. You can simply be. And that stillness brings an incredible sense of freedom.


Turning Solitude Into Celebration

Make solo outings a little ritual of joy. Dress up for yourself. Spray your favourite perfume. Carry a diary or a camera. Capture moments that make you smile — a tree full of blossoms, the sound of temple bells, a child’s laughter, or the aroma of freshly brewed coffee.

Treat yourself to a nice meal or a soothing cup of tea. Sit quietly and observe life unfolding — without rushing, without judging. These little acts fill your heart with gratitude and remind you that happiness was never outside; it was always within you.

 

Why You Should Try It Often

  • It builds confidence – you learn to rely on yourself emotionally.

  • It strengthens intuition – you begin to listen to your inner guidance.

  • It deepens peace – silence becomes your friend, not your fear.

  • It nurtures gratitude – you start noticing life’s small blessings.

  • It clears emotional clutter – you return refreshed, lighter, happier.

  • A solo outing is not an escape; it is a return to yourself.

  • It is about realising that your joy does not depend on company or conversation; it lies quietly within you, waiting to be rediscovered each time you step out alone.


So, the next time you feel like going out, do not wait for someone to join you. Put on your most comfortable clothes, carry your calm heart, and step into the world — just you and your beautiful self.


Because sometimes, the most meaningful conversations happen in silence, and the best company is your own.

 

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

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