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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.)

Tribal villages in Shahapur struggle to cremate their dead

 

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Shahapur/Thane: Even as India celebrates the 78th year of Independence after the "Azadi Ka Amrit Mahotsav", a haunting reality persists just 73 kilometers from Mumbai. In Shahapur taluka of Thane district known for its dense tribal population over 328 villages and hamlets still lack proper cremation grounds, forcing residents to perform last rites in the open, under scorching sun or heavy rains, sometimes using tarpaulins to shield the deceased from the weather.

 

One such tragic incident recently unfolded in Shedrun village, where the body of a local resident, Daulat Pandurang Bhagat, had to be cremated in the open during a downpour. With no shelter or designated cremation site, the villagers were seen holding up a plastic tarpaulin over the funeral pyre to protect it from the rain. Despite previous approvals for cremation grounds in the village, internal disputes and administrative delays have halted the process.

 

Shahapur taluka comprises 110 gram panchayats, 227 revenue villages, and over 414 hamlets, yet basic infrastructure remains elusive. According to local reports:

  • 328 villages still perform open-air cremations.

  • Only 31 locations have protective walls around cremation sites, while 681 sites lack any boundary protection.

  • Electricity is unavailable at 680 cremation grounds, forcing villagers to conduct funerals by lantern light.

  • Water access is missing at 654 sites, available only at 59.

  • 229 sites are in dilapidated condition, while only 231 are considered usable.

 

These figures were confirmed by data from the Nagar Panchayat administration, revealing a disturbing pattern of neglect and underdevelopment in essential public facilities.

 

While speaking to The Perfect Voice, Shahapur Tehsildar Parmeshwar Kasule, said the issue in Shedrun, stating that 4 gunthas of land within the village gaothan has been earmarked for a cremation ground. However, due to conflicting opinions among villagers some opposing the use of pasture (gairan) land fearing future scarcity — the project has not progressed.

 

When asked about the larger issue of cremation ground shortages in 328 villages, Tehsildar Kasule downplayed the situation, stating “only Shedrun has a problem, the rest are fine”, a claim strongly disputed by village leaders and social activists.

 

Local leaders like Sharad Mogre, district organizer of Shahapur Taluka Sarpanch Association, noted that requests for funds and proposals were sent to the Zilla Parishad’s Public Works Department over two and a half years ago but were ignored.

 

Bharat Ubale, former director of the Shahapur Agricultural Produce Market Committee, labeled the recent Shedrun incident “deeply unfortunate,” urging the administration to urgently allocate funds and resolve the cremation ground crisis.

 

Activists like Vasant Pansare, President of the Prahar organization, highlighted the even more distressing fact that some villagers must cross rivers and streams during the monsoon to carry bodies to remote cremation sites due to a complete lack of roads.

 

That such a grim reality exists in the Deputy CM’s own district is sparking widespread outrage. Residents and activists are now calling on state and district-level authorities to act urgently and with compassion, to ensure dignified last rites for every citizen, regardless of geography or socio-economic status.

 

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