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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.)

The eternal joy of sharing a saree

Pune's ‘Aapalee’- The Saree Library is one of its kind that celebrates sarees by making them accessible to everyone

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“Many women love sarees but don’t always have access to them or they find it inconvenient to wear them often. This thought was a trigger point to create Aapalee - The Saree Library — a space that celebrates sarees and makes them accessible to everyone,” says Pune based Pallavi Deshpande who at the age of 38 years, runs a business of renting out a wide range of sarees. Deshpande believes that women must wear sarees and enjoy the process without any hustle which seems difficult in today’s world in which everyone wants fast fashion and quick availability of resources.


Deshpande’s love for sarees started at home watching her mother and grandmother drape sarees every day. Over the years, from being just a type of attire, sarees transformed into a strong connection to memories, stories, and identity. “One moment that stands out was when a friend borrowed a saree for her special event from my personal collection and said it made her feel truly herself. That simple joy of sharing sparked the realisation that sarees are meant to be worn, celebrated, and circulated — not just stored away. That thought planted the first seed for Aapalee,” said Deshpande.


Deshpande has transformed the third floor of her bungalow located in Pune’s Nigdi where she stays with her in-laws, husband and her 6-year-old son into a saree renting studio.


While her favourite saree type is a handwoven pure silk Paithani from her wedding collection— she explains how the saree type itself was a great trigger point for her to start this business. She said, “it represents the perfect blend of tradition, craftsmanship, and timeless beauty. It reminds me why I started this journey — to keep these weaves alive and accessible.”


Deshpande runs the business with her partner, Amruta Kanetkar who comes from a makeup industry and styling background, which perfectly complements her creative and communication skills.


While the business idea is not the first of its kind in India, what sets Deshpande’s Apalee apart from other businesses is its initiative of building a saree community. Deshpande said, “I have started with my friends and family. We all women possess heavy and expensive sarees that we end up wearing only once in 20 years. Women bring their sarees to our studio. We study the quality and decide the price of rent. When that saree goes on rent, we pay 20 percent of what we earned through that saree to the owner of the saree. This particular idea has got a lot of encouragement. This way, we have involved other women in our business who get an opportunity to earn money by sharing their sarees with us.”


Aapalee offers a range of services. Firstly, it has over 400 sarees of different varieties from Kanjeevaram to Paithani to Georgette to many more that they give on rent. Besides, they also provide ready-towear already draped sarees for college going girls for a one-time occasion. Many women even get their own saree draped at the studio.


Deshpande quit a very high paying stable job to start this business. Deshpande who was raised in Gwalior of Madhya Pradesh, finished her BSC in electronics in Gwalior and moved to Pune for Higher studies. There she completed MBA in marketing and has over 15 years of experience in handling projects at companies such as Cap Gemini, Accenture and a couple of financial institutions. She quit as an assistant project manager at JP Morgan Chase earlier this year and started this business of saree renting in July 2025. Deshpande said, “We’re still in our early stages, so our focus right now is more on building the community, curating quality sarees, and refining our services. But yes, the response has been very encouraging. For us, the biggest success is the emotional connection people are forming with Aapalee — the profits will naturally follow.”


Having said that, Deshpande believes if you identify what you truly enjoy doing, and have family support, nothing can stop you from chasing a dream, as long as you have meticulously planned your finances.

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