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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.)

Why Half-Delegation Doubles the Load

“Delegation without release doesn’t free you … it multiplies your work.”

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Every founder says they want to delegate. Few actually do. What most leaders practice isn’t delegation. It’s half-delegation: tasks pushed down, but ownership of standards and outcomes quietly held back.


The illusion is powerful. On paper, the team looks empowered. In reality, every loop still circles back. The founder steps out… only to re-enter through side doors: WhatsApp overrides, midnight edits, “just a quick check” messages.


Instead of freeing them, half-delegation doubles the load.


The Factory Example

At “The Factory” (our case study of this series), the founder had finally hired senior managers. Production head, operations head, finance lead. “Now I can focus on strategy,” he told us. For a few weeks, it seemed to work. He stepped back from the daily stand-ups. Managers ran reviews on their own.


But then patterns emerged:

  • WhatsApp messages at midnight correcting quality details.

  • Quick edits to client proposals after teams had already approved.

  • Vendor negotiations reopened because “he knew the history better.”


From the team’s perspective, nothing had changed. They were still executing under his shadow. From his perspective, he was working twice as hard. Delegated tasks still lived in his head. He tracked them, worried about them, and re-entered them after the team had already moved.


This is the cost of half-delegation: two versions of the same work … one done by the team, one replayed in the founder’s brain.


Why Half-Delegation Happens

Founders don’t cling because they want control. They cling because they fear loss.

Loss of quality.

Loss of client trust.

Loss of consistency.


So they push the task out, but keep the standard inside. They let the team act, but reserve the right to intervene.


It feels safer. In truth, it’s corrosive. Teams learn their work isn’t final. Leaders drown in mental residue. And the cycle repeats.


Delegation Debt

We call this delegation debt: the compounded load that builds when you hand off action but not ownership.


At The Factory, delegation debt showed up in endless corrections. Managers stopped making confident calls because they knew he would revisit them anyway. Every decision took twice as long … once when the team acted, again when the founder “checked.”


It would have been less work if he had done it himself. At least then the loop closed once.


Cognitive Residue

Even when founders don’t step back in, they often carry what we call cognitive residue … the mental fragments of tasks supposedly delegated. The factory founder described it perfectly: “I tell them it’s theirs. But I still think about it at night. I still wonder if they’ll get it right.”


That residue meant he never truly switched off. Even when he didn’t intervene, he stayed tethered. Delegation in words, ownership in mind.


Phantom Ownership

The cruelest part is what happens to teams. They think they’ve been trusted. They take ownership. Then suddenly, the founder reappears with edits, corrections, or vetoes.


That’s phantom ownership where responsibility looks transferred but still defaults back to the founder. It breeds frustration. Teams stop trying to own outcomes because they know ownership isn’t real. And leaders complain about lack of accountability … without realizing they’ve sabotaged it themselves.


Breaking the Cycle

Half-delegation isn’t better than no delegation. It’s worse. At least when you own it fully, the loops close once. In half-delegation, every loop closes twice: once in the system, once in your head.


Breaking the cycle requires three deliberate shifts:

Define Done. Don’t just assign the task. Make clear who decides it’s finished.

Make Standards Visible. If quality benchmarks live in your memory, they’re still yours. Write them down.


Exit Publicly. Tell the team where you’re stepping out and mean it. If you return, explain why, once. Then fix the system, not the person.


The Human Confession

One founder put it bluntly: 


“I thought I was delegating. Turns out I was just postponing my work … until I came back to redo it.”


That’s the heart of half-delegation. It doesn’t free you. It delays you. And in the process, it erodes the team’s confidence while doubling your own burden.


Final Reflection

The illusion of control is seductive. It feels like safety. In reality, it’s slow poison. True delegation isn’t about pushing tasks down. It’s about releasing ownership. Until you do, you’re not freeing capacity — you’re multiplying debt.


If you find yourself re-entering loops you “gave away,” you’re not delegating. You’re shadow-managing. And your team is learning that nothing they do is ever final. The day you release not just the task but the standard is the day you start to scale. Until then, every handoff will keep coming back.


Read more in-depth insights at: www.ppsconsulting.biz/blog


(The writer is Co-founder at PPS Consulting. Views personal.)

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