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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.)

“We suspect tinkering of 1-cr votes”

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Mumbai: As the Congress Leader of Opposition In Lok Sabha Rahul Gandhi embarked on a high-voltage 'Voter Adhikar Yatra', the Maharashtra Pradesh Congress Committee (MPCC) President Harshwardhan Sapkal made a stunning claim that in the 2024 Parliament and Assembly elections, a stupendous ‘one-crore votes’ may have been manipulated to edge out the state Opposition parties. Excerpts from an exclusive chat.

 

The Congress is tomtoming a lot about ‘Vote-Chori.’

It's not a mere slogan. For the last three months, we’ve done our own investigation - collecting inputs, deep diving into the Election Commission of India (ECI)’s data. We believe that nearly 78-lakh votes were manipulated during the November 20–23, 2024 state Assembly polls.

 

Seventy-eight lakh? That’s a massive number.

If you consider the voter additions and deletions or unusual local swells in the 6-month gap between the 2024 Lok Sabha and Assembly elections, we strongly suspect the  figure could touch One Crore votes. We aren’t just crunching numbers. There are other factors, patterns that make this issue extremely serious.

 

What remedial steps have you taken?

Already, 50 writ petitions are before the courts, plus we’ve filed over 100 complaints with election Returning Officers. We’ve kept the State Election Commission fully informed. But this is not stopping here.

 

The civic bodies' elections are due soon, what’s your preparation?

Watch, Scrutiny & Vigil! Our party activists will maintain a 24x7 hawk-eye on the EVM-VVPAT strongrooms from the moment polling ends, until counting day. No more scope for mischief. In the next three months, we shall hold Division level brainstorming sessions to finalise candidates, local alliances, electoral and political strategies.

 

You are regarded as a stickler for accountability. Is that deliberate?

Absolutely. Accountability is non-negotiable. If a person is given a responsibility by the party, then how you spend your day, what activities you’ve taken up and the outcome, must be clear both to top leaders and grassroots workers. This isn’t about PR stunts. Claims can’t remain in the air, they must be backed by solid ground work.

 

Does it percolate within the MPCC?

As directed by the party high command, the work of each PCC Member will be reviewed annually. If they fall short, harsh decisions will be taken. Simply put, ‘everyone is on a one-year probation’, including me! (laughs). I have given my Report Card, others at all levels are expected to follow suit.

 

‘Accountability with Responsibility’

A soft-spoken, no-nonsense person with a dash of humour, MPCC President Harshawardhan Sapkal, 57, is known for his blunt talk, massive public outreach and an aggressive stance against the Mahayuti government on law & order, farmers, social harmony, plus other major issues.

 

The 25th state party head in 65 years (1960 onwards), Sapkal came out with a half-yearly performance card – billed as unprecedented - after he took over in Feb. 2025, listing his activities and achievements, terming it as ‘Accountability’ with major ‘Responsibility’.

 

Though he says all his campaigns were equally significant, the ‘Sadhbhavna Padyatras’ for saving the Constitution, safeguarding Democracy, Communal Harmony, Social Unity and Peace, grabbed huge attention in multiple districts this year, somewhat unnerving the Bharatiya Janata Party-Nationalist Congress Party-Shiv Sena alliance.

 

The Congress took out nearly four dozen ‘Jai Hind Tiranga’ rallies to salute the Armed Forces, candle-light processions focusing on irregularities in the 2024 Assembly polls, attacks on intellectuals and artists, several incidents of rape that raised questions on public safety vis-à-vis law & order, unchecked hate campaigns unleased by ruling party leaders targeting castes and religious communities.

 

Sapkal spearheaded agitations on stalled infrastructure projects, farmers’ distress, skyrocketing inflation, unemployment among youth, opposing the new Maharashtra Special Public Safety Bill, the compulsion of Hindi at the primary school level, attempts to polarize the society and other topics of mass concern.

 

Practically living in a suitcase, Sapkal hit the roads vigorously and toured 22 of the state’s 36 districts, engaging with party leaders-activists plus the common public, invigorating the Congress at the mass-level ahead of the civic polls.

 

“The Sadbhavna Padyatra was a campaign to safeguard Democracy and a historic initiative to curb corruption, communal politics and institutional collapse in Maharashtra. The MPCC will perform as the state’s ‘Watchdog’ to defend the people, from tense districts to urban flashpoints and reassure the masses that we are with them,” a determined Sapkal told ‘The Perfect Voice’.

 

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