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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 Three Lives of the Woman Voter

As household agency turns into electoral agency, women are redefining what Indian politics must answer to.

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I grew up watching a pattern in my home. Every birthday or festival, my father would bring my mother a saree or a gift something he believed she would like. And without fail, she would wince. Not because she disliked the gift, but because she had never been asked. Her choice had been assumed for her. For years, she let it pass because life was full of bigger battles. When a woman is managing survival and holding a family’s stability together, her own preferences and aspirations are usually pushed aside.


But survival and stability don’t disappear the moment aspiration enters. Even when my mother began earning and finally had enough to spend on herself, I still saw that familiar irritation whenever her choices were overridden. Aspirational women do not rise above survival or stability; they carry all three layers at once. The definitions simply evolve. What begins as managing budgets, safety, meals and school fees gradually turns into claiming dignity, autonomy and the power to choose.


I remember the shift clearly. With her own income, my mother first shopped for her daughter, joyfully choosing things with intention. And somewhere in that act of deciding for someone she loved, she found her way back to choosing for herself. One day, she walked into a store, picked a saree she liked, paid for it, and walked home carrying not just a purchase but a quiet sense of authority. This was no rebellion but aspiration layered upon years of survival and stability.


Layered Reality

This layered reality is precisely the journey of the Indian woman voter. When India voted in 1951–52, women received equal voting rights from day one - a remarkable stance for a new republic. But society needed time to catch up. Nearly 80 million women were registered, yet close to 2.8 million had to be re-entered because they were listed not as individuals but as “wife of” or “daughter of.” On paper, women were citizens. In reality, they were still someone’s extension.


For decades, the number of women who voted was fewer than that of men. They were invoked as symbols of sacrifice and strength, but rarely treated as political individuals. It was the same dynamic I had grown up watching where women were trusted, depended upon, admired, but not asked.


There has been a shift, though, in the last fifteen years. Women began turning up in large numbers to cast their vote. By 2014, the gender gap in voting had nearly vanished. In 2019, women outvoted men. Not because politics suddenly became inspiring, but because it finally began responding to the everyday realities women negotiate.


Survival First

In the first phase, women voted for survival - toilets, LPG, water, bank accounts, and prohibition in some states. Whether these were policies or freebies misses the point. What mattered was that political parties finally got the needs right. Women voted not for handouts but for relief.


The next phase is stability - a need women have signalled for years but which politics still overlooks. Manifestos mention education and healthcare, yet the everyday systems women rely on, such as safe transport, lit streets and reliable public services, rarely attract concrete promises. No major party has treated this layer with real seriousness. Stability is not a luxury but the basic condition that allows women to work, move and imagine lives beyond survival. If survival has been addressed in parts, stability is the necessary next step.


Aspiration is beginning to take shape but only in places where women have tasted some stability. This is the most powerful and least understood phase. Women want mobility, education, jobs, dignity, identity, and representation, but aspiration cannot flourish without the safety, predictability, and everyday systems that make stepping out possible. Where stability exists, women are already voting for opportunity, and not just protection. When stability becomes a lived reality across the board, aspiration will no longer be selective but will be national.


Nowhere is this clearer than in Bihar which has witnessed a momentous poll result. A state often judged harshly has shown the rest of India what happens when women feel acknowledged. Bihar’s women voted in record numbers this time, often more than men. They decisively shaped the outcome.


Yet one contradiction remains. Women dominate the grassroots. Over 14.5 lakh women lead in panchayats across India, managing schools, budgets, development work and entire community ecosystems. But in Parliament, women make up just 13.6 percent. In most state assemblies, they hover around 9–10 percent. Why does leadership stall at the panchayat level?


Because aspiration needs room, and room is where the system still falls short. Higher political roles demand time, networks, mobility, finances, and freedom from constant scrutiny - areas where women still face the steepest barriers. We keep asking why there aren’t more women in leadership. The real question is: have we created the conditions that allow aspiration to rise?


Women have travelled from “my family must survive” to “my family should progress” to “I want to progress too.” That last shift is the quiet revolution already underway.


Maybe the most straightforward way to understand this moment is to return to my mother’s trajectory. She lived through all three layers - survival, stability, aspiration - not as steps but as overlapping realities. For years, she accepted choices made for her, irritated but silent. Then she found a little financial room. She first chose for her daughter. And then one day, she chose for herself. She walked into a store, picked a saree she liked, paid for it, and walked home with the reins in her hands.


That same quiet certainty is what you see in women who now walk to the polling booth and cast their vote not for gratitude but because choosing for themselves has finally become the most natural thing to do.

 

 (The author is a learning and development professional. Views personal.)

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