Mind Your Money, More Than Ever

“The average tax-paying investor is now running up a down escalator whose pace has accelerated to the point where his upward progress is nil.” – Warren Buffett, CEO, Berkshire Hathaway A liquid savings of Rs 1 lakh a year can fetch you some security as you celebrate your 30th birthday. Thirty years on, you’ll find it’s down to a meagre Rs 15,625 in today’s value. So, who moved your money?  It’s inflation, assuming an average rate of around 6 per cent to sustain through the period. And, if the Reserve Bank can put a leash on the falling purchasing power of the currency to its mandated 4 per cent level, then you could be a bit lucky with your annual savings being worth around Rs 29,385. That was an instance of the possible erosion to investments inflationary waves can cause. High inflation environments have plagued India time and again along...