Talking about finances

I recently had attended a meetup for marketing professional , where I met a wealth advisor. And he started talking to me about finances , portfolio management and yada yada.

And i realised that i don't really have spent that much time learning about finances , as much as I have spending around learning about the latest new tech , how can improve my workflow using claude , and just exploring different side projects online , scrambling for ideas.

I realised that my modus operandi , has always been more around how can we improve and get more money on the table rather than the other way around, which is about investing , and managing the money i already have.

Yet , at the same time, investing isn't required to grow money, it is done to ensure that your existing money isn't eroded due to the inflation that we get each year .

The truth is: if you just leave money in the bank, you’re silently losing to inflation. In India, inflation averages ~6% annually. That means ₹1 lakh today will only buy goods worth ~₹55,000 in 10 years. Add currency depreciation (₹1 ≈ €0.01), and the picture gets scarier.

That's a big thing, imagine , that a lakh in the next 10 years , will be just 50,000 rupees.

Heck , if you travel europe now , a single euro is more or less 100 rupees . That's a big thing , and generally wages , don't grow in equal support to inflation for people , so research about it and invest generally in SIPs or mutual funds.z

Here's an AI generated example to drive my point further.

Case 1: He just saves in bank

• Annual income: ₹25,00,000

• Let’s say he saves ₹10,00,000 per year (after expenses).

• Keeps it in a savings account at ~3% interest.

➡️ In 10 years:

• Total saved = ₹1 Cr (₹10L × 10 years).

• With 3% bank interest = ~₹1.17 Cr.

• But inflation (~6%) cuts the value in half.

• Real purchasing power ≈ ₹60L.

So even after saving diligently, he’s effectively lost 40% of his wealth.

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Case 2: He invests in SIP/Index Funds

• Same ₹10,00,000 invested yearly via SIP in equity mutual funds.

• Average return assumption = 12% CAGR (historical Indian equity returns).

➡️ In 10 years:

• Corpus grows to ~₹1.95 Cr.

• After adjusting for inflation (~6%), real value ≈ ₹1.1 Cr.

• He has preserved and grown his wealth — nearly double compared to bank savings.