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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.)

Swanand Shloka: Reviving Sanskrit, Childhood Traditions

Updated: Oct 21, 2024

Swanand Shloka: Reviving Sanskrit, Childhood Traditions

Since April 2022, Mangesh Khisty, a resident of Cosmos Horizon Complex, Thane, has been gathering children in the “Radha Krishna Mandir,” located within the housing society premises, every Sunday evening. He has been teaching some well-known and lesser-known Sanskrit shlokas to these young and impressionable minds. What started as a small group of three to four children has increased to about 20 children between the ages of 4 and 12.

The children enjoy this weekly meet and look forward to it, as it is now no longer limited to just shloka recitation alone but also encompasses long-lost childhood games, mythological and religious stories, and activities such as tree plantation drives. As a result, not only children but their parents and grandparents have started regularly joining these sessions.

An important benefit of teaching these shlokas to children would be the preservation of the Sanskrit language, which, despite its profound historical significance, has seen declining use in modern times. Children exposed to Sanskrit develop an appreciation for Indian philosophy, history, and values.

Reciting shlokas offers unique mental benefits. Sanskrit’s precise structure sharpens children’s analytical and thinking skills. Studies show that memorising and reciting these complex sound patterns improves memory, focus, and flexibility in thinking. Regular practice also boosts pronunciation, especially in Marathi and Hindi, while enhancing language comprehension and verbal reasoning.

This initiative, aptly named “Swanand Shloka,” recently completed 100 sessions, and a programme was organised by the parents to celebrate this occasion. The children performed about 30 Shlok recitations ranging from Aartees such as “Yei O Vitthale” to “Mahishasuramardini Stotra” and “Shri Ram Jay Ram Jay Jay Ram” to Marathi folk songs such as “Mani Nahi Bhaav, Mhane Devaa Mala Paav.” These renditions were well-appreciated by the audience and received generous praise and applause.

The presence of eminent personalities and speakers graced this event. Dr. Rajeev Puri, a motivational speaker and historian, mesmerised the audience with his immense knowledge of Indian history and his zeal and passion. He praised this noble initiative and acknowledged that such initiatives are the need of the hour if we wish to preserve our culture and heritage and pass on our values to the next generation.

Khisty plans to extend the Swanand Shloka initiative to other societies and communities in and around Thane, with efforts focused on creating a network of children and families committed to preserving these timeless traditions.

Additionally, the practice of chanting shlokas is also known to have a calming effect on the mind, reducing anxiety and promoting emotional well-being. The rhythmic and repetitive nature of chanting fosters mindfulness, helping children focus and remain present in the moment, a skill that is crucial for emotional regulation and resilience in today’s fast-paced world.

As the sound of shlokas continues to echo through the halls of the Cosmos Horizon Complex and beyond, one can’t help but feel that this is only the beginning of something truly transformative.

(The writer is a resident of Thane. Views personal.)

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