Around Father’s Day, a few weeks ago, a video clip featuring 72-year old PR Balan, actor Vidya Balan’s dad, went viral for the right reasons – here was an unassuming, middle-class dad who trusted his girls and gave them wings to fly. More power to him and his tribe. The video also also held some key personal finance lessons between the lines – the corroding of inflation, and the need to save and invest for the future. PR Balan’s starting salary as a typist in Mumbai around four decades ago was ₹60 a month. This, he said, can’t get him a cup of coffee today.

Why just coffee, the prices of most things have risen steadily and will continue to do so, thanks to inflation, the silent thief. This makes it critical for us to be able to grow earnings at a pace higher than expenses. Balan, after 38 years, had to leave his job at the age of 55 in the year 2000. At this point, his savings were nil. This left him distraught. Any of us could get caught in such unpleasant situations. Jobs and incomes are uncertain for most in the market economy we live in, and regular expenses that rise with inflation could leave many without surpluses. This makes it imperative during the earning years to plan well, upgrade skills and increase incomes, keep salting away tidy sums in smart investments and increase these as the years roll by. The earlier the investments begin, the better. Importantly, these sums should earn inflation-beating returns. Not every child is as caring as Vidya Balan who stood by her father. Better prepared than sorry.

A wise shaayar summed it best, “ Paisa khuda toh nahin, par khuda ki kasam, khuda se kam bhi nahin .” (Money isn’t God, but I swear on God, it’s no less than God.”)

Anand Kalyanaraman Senior Assistant Editor

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