💬Money Talks! – Vol.5
By Paisa Pyaar Portfolio
In Volume 4, we discussed why most people don’t actually need a raise — they need a clearer understanding of their spending and financial priorities.
But here’s a truth many avoid: even if you manage your expenses well, simply saving money is not enough.
The Illusion of Safety
A savings account feels safe. Your money is there, you can access it anytime, and it even earns a little interest.
But “a little” is the problem. Most savings accounts in India offer 2–4% interest, while inflation often runs at 6% or more.
That means your money’s real value — what it can actually buy — is quietly shrinking every year.
The Silent Thief: Inflation
₹10,000 today might buy you a month’s groceries.
Five years later, the same ₹10,000 might cover only three weeks — even if it’s been “safely” sitting in your account.
The silent thief isn’t bad spending… it’s the lack of growth.
The Opportunity Cost Trap
When your money sits idle in a savings account, it misses the chance to work for you.
If you had invested ₹10,000/month in an equity mutual fund over the last 10 years, you could have grown it to over ₹23 lakh (at ~12% annual returns).
The same money in a savings account? Barely ₹13 lakh — and that’s before inflation takes its cut.
From Saving to Growing
- Build an Emergency Fund First – Keep 3–6 months of expenses in a savings or liquid fund.
- Invest the Rest – Mutual funds, index funds, RDs, or even FDs (for short-term goals).
- Automate It – Set up a SIP so investing happens before you get a chance to spend.
Final Word:
A savings account is a parking lot, not a farm.
It’s where money rests, not where it grows.
The reality check? If you want financial freedom, your money needs to work harder than you do.
© 2025 Paisa Pyaar Portfolio. All rights reserved.
This content is original and created exclusively for educational purposes. Unauthorized copying or reproduction is prohibited.
This article has been written with original insights and tailored content by Paisa Pyaar Portfolio. All information is meant for educational use only and has not been copied from any external source.