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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 Illusion of Confidence

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In the business world, confidence has become a kind of currency. The firm handshake, the unshakable tone, the assured smile — all are treated as signs of capability. Yet, not all confidence is real. Some of it is an illusion carefully built to hide uncertainty beneath the surface.


It is not uncommon to meet people who appear unshakably sure of themselves, but who crumble when their ideas are questioned. Others project calm strength in meetings but struggle to make decisions when no one is watching. This is not confidence; it is performance. And over time, the difference shows.


Real confidence cannot be faked for long. It is not loud, nor is it dependent on constant validation. It is rooted in a quiet understanding of one’s strengths, values, and limitations. It is the ability to remain composed when challenged and to respond with grace instead of defensiveness. This depth of confidence often distinguishes the respected leader from the merely visible one.


In the age of personal branding, the illusion of confidence is more dangerous than ever. Social media rewards appearances — perfect pictures, polished statements, and success stories with little mention of the struggle that built them. But people are growing wiser. They can sense the difference between authenticity and a well-rehearsed act. What once looked aspirational now often feels distant, even hollow.


A strong personal brand is not built on projection but on presence. It comes from knowing who you are, what you stand for, and how consistently you show up. The moment a person begins to rely on appearance more than essence, the cracks begin to show — in relationships, in leadership, and eventually, in credibility.


The truth is that confidence without character doesn’t hold. The world doesn’t need louder voices; it needs steadier ones. People follow leaders who make them feel seen, not small. They trust those who admit mistakes and still stand tall.


Many business owners and professionals mistake style for substance. They invest in looking confident instead of becoming confident. But the latter comes only through reflection and refinement — through working on how you communicate, how you behave under pressure, and how you treat people when there’s nothing to gain.


Confidence grows quietly, from within. It develops when your personal brand reflects your real self, not a curated version of it. When your actions align with your words, and your composure remains steady despite circumstances, that’s when confidence stops being a mask and becomes your natural state.


True personal branding is not about impressing others. It’s about expressing yourself clearly, sincerely, and consistently. And when done right, it turns your presence into influence — not because you tried to appear confident, but because you became trustworthy.


For every business owner and founder reading this, it’s worth asking: are you building your confidence or simply performing it? Because the difference decides how far your brand will go.


If this reflection resonates with you and you’re ready to strengthen not just your image but the substance behind it, I invite you to join my upcoming Signature Personal Branding Program for business owners and founders beginning on October 24. It’s an intimate, limited cohort designed to help you develop a personal brand that commands respect — not through appearance, but through authentic confidence.


Because real confidence isn’t performed — it’s lived. And if you’d like to begin this journey with a personal touch, you can also book a complimentary consultation callwith me to explore where your brand truly stands today — and how we can help you take it to the next level.



(The author is a personal branding expert. She has clients from 14+ countries.

Views personal.)

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