top of page

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 is Feeding Seagulls Hazardous?

Updated: Mar 3

Seagulls

The recent picture of Uttar Pradesh Chief Minister Yogi Adityanath in which he can be seen feeding gulls before attending the closing ceremony of Maha Kumbh 2025 in Prayagraj paves way for a brainstorming on what is good and what is bad for the digestive systems of these migratory birds. While it is not clear in the picture whether what exactly is being fed to these gulls, it is worth digging deep through the much-discussed periodic debate over what is appropriate to feed them, and what is not.


What are seagulls?

Seagulls are migratory birds that fly long distances to save themselves from harsh weather and also in search of fish for food. Specifically, Siberian seagulls come to Indian coastline between October to March and are seen in abundance from North to South. In fact, Mumbai's marine drive is the most sought-after spot for walkers who try to get a glimpse of these birds. Morning Walkers enthusiastically click pictures and feed them farsan and gathia. This has been a tradition for years together, and despite repeated awareness drives, people are still feeding packet food to these birds. Experts believe that packet food is extremely hazardous to Seagulls, or the food that we humans consume may or may not suitable for their health.


Is there a law prohibiting this in India?

Media reports highlight that in 2018 BNHS had requested the Maharashtra state environment department to ban the feeding of migratory birds in Mumbai and adjoining areas. An elderly morning walker Varsha Phadke spoke to the Perfect Voice highlighting, "Before lockdown or before the work on coastal road project began, there were officials formally deployed at marine drive to prohibit walkers from feeding these birds. But the efforts seem to be inconsistent as this season the practice has resumed with no concerned authority to officially object to feeding farsan to the birds. Apart from the health of the birds being deteriorated, the clean and picturesque marine drive is losing its charm as the gathia is left abandoned and the entire area is littered."


VJTI Engineer and retired BMC Official Mahesh Phadke told The Perfect Voice, "One of the obligatory duty of Municipal corporation is to protect the health of people through preventive measures. Accordingly, the caution signs are placed at various places to prevent people from health hazards due to pigeons. In spite of knowing the risk involved even educated people ignore the directions and continue to feed pigeons which endanger their own health. It is observed that, respiratory problems, lungs problems and asthma are proven hazards of feeding pigeons."


What PETA India says

"There is increased discussion and awareness against feeding wild animals with human food, but the situation becomes complex when we consider humans have cut down the animals’ natural forest homes forcing them into human areas. As natural habitats are turned into multistorey buildings and parking lots, pigeons like many animals, have been forced to adapt to their new surroundings. Just as we would show compassion to a hungry dog, so many do to a hungry pigeon. It would be ideal, however, to feed pigeons foods like greens, berries and fruits. Town planning must include forest protection. That is the key solution to issues involving wildlife."


What do Medical practitioners say?

Dr Sharad Ketkar (MBBS), GP from Kurla in Mumbai said, "Pigeons spread respiratory diseases. They have no utility value. In Singapore they kill pigeons as soon as they are spotted. Allergic asthama is on the rise because of pigeons".


Dr. Mandar Bapaye, Girgaon based Pediatrician said, "Pigeons are fed because of some religious beliefs. Health hazards are plenty. Both infectious and non-infectious lung diseases can affect both adults as well as children due to pigeons. From fungal infections to Fibrotic lung diseases, it also poses risk for those who has Asthma and Allergic Rhinitis. Ideally pigeons are built to hunt for their food but have lost their abilities due to easily available food. The pigeons over the years have become dominant bird species as far as the urban setting is concerned thus the gravity of causing illness is high."


The popular promenade of Marine Drive is littered with heaps of farsan every year between October and March. Yes, it spoils the entire experience of a healthy walk full of fresh air that defines the location. As far as the gut health of guls is concerned, there are mixed responses from the experts. The fact that farsan is still very regularly been fed to these birds despite these mixed reviews even in a city like Mumbai highlights the reality of extreme indiscipline and lack of respect for regulations and a complete indifference towards wellbeing of these migratory birds by the residents of this country and more so, of Mumbaikars.

Comments

bottom of page